Cleveland-Cliffs (FRA:CVA) Beneish M-Score : -3.28 (As of May. 03, 2024)

View and export this data going back to 1985. Start your Free Trial

What is Cleveland-Cliffs Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -3.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Cleveland-Cliffs's Beneish M-Score or its related term are showing as below:

FRA:CVA' s Beneish M-Score Range Over the Past 10 Years
Min: -16.71 Med: -1.94 Max: 3.55
Current: -3.28

During the past 13 years, the highest Beneish M-Score of Cleveland-Cliffs was 3.55. The lowest was -16.71. And the median was -1.94.

Cleveland-Cliffs Beneish M-Score Historical Data

The historical data trend for Cleveland-Cliffs's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Cleveland-Cliffs Beneish M-Score Chart

Cleveland-Cliffs Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-3.29

3.55

-0.91

-2.26

-2.71

Cleveland-Cliffs Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-1.39	-1.05	-1.94	-2.71	-3.28

Competitive Comparison of Cleveland-Cliffs's Beneish M-Score

For the Steel subindustry, Cleveland-Cliffs's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Cleveland-Cliffs's Beneish M-Score Distribution in the Steel Industry

For the Steel industry and Basic Materials sector, Cleveland-Cliffs's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Cleveland-Cliffs's Beneish M-Score falls into.

Cleveland-Cliffs Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Cleveland-Cliffs for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.8781

0.528 * 0.8516

0.404 * 0.9566

0.892 * 0.9456

0.115 * 1.0135

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2618

4.679 * -0.113817

0.327 * 0.9527

-3.30

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €1,719 Mil.
Revenue was 4783.08 + 4687.704 + 5251.885 + 5523.232 = €20,246 Mil.
Gross Profit was 262.2 + 154.056 + 449.76 + 594.412 = €1,460 Mil.
Total Current Assets was €5,951 Mil.
Total Assets was €15,857 Mil.
Property, Plant and Equipment(Net PPE) was €8,069 Mil.
Depreciation, Depletion and Amortization(DDA) was €888 Mil.
Selling, General, & Admin. Expense(SGA) was €538 Mil.
Total Current Liabilities was €3,124 Mil.
Long-Term Debt & Capital Lease Obligation was €3,371 Mil.
Net Income was -61.64 + -142.135 + 247.368 + 320.281 = €364 Mil.
Non Operating Income was -116.84 + -75.194 + 44.976 + 49.842 = €-97 Mil.
Cash Flow from Operations was 130.64 + 597.884 + 718.679 + 818.701 = €2,266 Mil.

Total Receivables was €2,070 Mil.
Revenue was 4945.53 + 4761.536 + 5709.53 + 5994.802 = €21,411 Mil.
Gross Profit was 92.466 + -56.64 + 351.48 + 928.026 = €1,315 Mil.
Total Current Assets was €6,953 Mil.
Total Assets was €17,421 Mil.
Property, Plant and Equipment(Net PPE) was €8,359 Mil.
Depreciation, Depletion and Amortization(DDA) was €934 Mil.
Selling, General, & Admin. Expense(SGA) was €451 Mil.
Total Current Liabilities was €3,232 Mil.
Long-Term Debt & Capital Lease Obligation was €4,258 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(1718.56 / 20245.901)	/	(2069.744 / 21411.398)
	=	0.084884	/	0.096666
	=	0.8781

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(1315.332 / 21411.398)	/	(1460.428 / 20245.901)
	=	0.061431	/	0.072135
	=	0.8516

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (5951.48 + 8069.32) / 15857.12)	/	(1 - (6952.696 + 8359.3) / 17420.968)
	=	0.115804	/	0.121059
	=	0.9566

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	20245.901	/	21411.398
	=	0.9456

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(934.122 / (934.122 + 8359.3))	/	(888.389 / (888.389 + 8069.32))
	=	0.100514	/	0.099176
	=	1.0135

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(537.864 / 20245.901)	/	(450.808 / 21411.398)
	=	0.026567	/	0.021055
	=	1.2618

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((3370.88 + 3124.32) / 15857.12)	/	((4258.106 + 3231.64) / 17420.968)
	=	0.409608	/	0.429927
	=	0.9527

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(363.874 - -97.216	-	2265.904)	/	15857.12
	=	-0.113817

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Cleveland-Cliffs has a M-score of -3.30 suggests that the company is unlikely to be a manipulator.

Cleveland-Cliffs Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Cleveland-Cliffs's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Cleveland-Cliffs (FRA:CVA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Steel » Cleveland-Cliffs Inc (FRA:CVA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CLF:USA CLF:Mexico CVA:Germany

Address

200 Public Square, Suite 3300, Cleveland, OH, USA, 44114-2315

Website

https://www.clevelandcliffs.com

Cleveland-Cliffs Inc is a flat-rolled steel producer and manufacturer of iron ore pellets in North America. It has one reportable segment -Steelmaking. It is vertically integrated from mined raw materials, direct reduced iron, and ferrous scrap to primary steelmaking and downstream finishing, stamping, tooling and tubing. It serves a diverse range of other markets due to its comprehensive offering of flat-rolled steel products. Geographically, it operates in the United States, Canada and other countries. The majority of revenue is from the United States. It is a supplier of steel to the automotive industry in North America.