Watts Water Technologies Beneish M-Score Historical Data
The historical data trend for Watts Water Technologies'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.
Watts Water Technologies Beneish M-Score Chart
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Watts Water Technologies Annual Data
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Trend |
Dec14 |
Dec15 |
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Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.53 |
-2.76 |
-2.41 |
-2.34 |
-2.50 |
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Watts Water Technologies Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
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Sep20 |
Dec20 |
Mar21 |
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Mar22 |
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Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.34 |
-2.42 |
-2.43 |
-2.58 |
-2.50 |
Competitive Comparison of Watts Water Technologies's Beneish M-Score
For the Specialty Industrial Machinery subindustry, Watts Water Technologies'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.
Watts Water Technologies's Beneish M-Score Distribution in the Industrial Products Industry
For the Industrial Products industry and Industrials sector, Watts Water Technologies's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Watts Water Technologies's Beneish M-Score falls into.
Watts Water Technologies 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 Watts Water Technologies for today is based on a combination of the following eight different indices:
| M | = | -4.84 | + | 0.92 * DSRI | + | 0.528 * GMI | + | 0.404 * AQI | + | 0.892 * SGI | + | 0.115 * DEPI |
| = | -4.84 | + | 0.92 * 1.0671 | + | 0.528 * 0.9457 | + | 0.404 * 1.0674 | + | 0.892 * 1.0115 | + | 0.115 * 1.1276 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0566 | + | 4.679 * -0.018577 | - | 0.327 * 1.1186 |
| = | -2.53 |
* 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.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was €238 Mil.
Revenue was 502.057 + 472.529 + 491.774 + 440.568 = €1,907 Mil.
Gross Profit was 234.385 + 219.633 + 233.334 + 203.705 = €891 Mil.
Total Current Assets was €973 Mil.
Total Assets was €2,118 Mil.
Property, Plant and Equipment(Net PPE) was €228 Mil.
Depreciation, Depletion and Amortization(DDA) was €40 Mil.
Selling, General, & Admin. Expense(SGA) was €560 Mil.
Total Current Liabilities was €372 Mil.
Long-Term Debt & Capital Lease Obligation was €274 Mil.
Net Income was 51.077 + 61.655 + 70.056 + 60.43 = €243 Mil.
Non Operating Income was -4.218 + -0.469 + -0.923 + 0.187 = €-5 Mil.
Cash Flow from Operations was 100.778 + 94.075 + 61.933 + 31.196 = €288 Mil.
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Total Receivables was €221 Mil.
Revenue was 473.794 + 492.678 + 498.164 + 420.586 = €1,885 Mil.
Gross Profit was 206.358 + 220.079 + 226.283 + 180.329 = €833 Mil.
Total Current Assets was €897 Mil.
Total Assets was €1,823 Mil.
Property, Plant and Equipment(Net PPE) was €186 Mil.
Depreciation, Depletion and Amortization(DDA) was €38 Mil.
Selling, General, & Admin. Expense(SGA) was €524 Mil.
Total Current Liabilities was €357 Mil.
Long-Term Debt & Capital Lease Obligation was €139 Mil.
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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) |
| = | (238.237 / 1906.928) | / | (220.707 / 1885.222) |
| = | 0.124932 | / | 0.117072 |
| | = | 1.0671 |
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) |
| = | (833.049 / 1885.222) | / | (891.057 / 1906.928) |
| = | 0.441884 | / | 0.467274 |
| | = | 0.9457 |
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 - (972.937 + 227.599) / 2117.72) | / | (1 - (897.366 + 185.779) / 1822.77) |
| = | 0.4331 | / | 0.40577 |
| | = | 1.0674 |
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 |
| = | 1906.928 | / | 1885.222 |
| | = | 1.0115 |
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)) |
| = | (37.805 / (37.805 + 185.779)) | / | (40.148 / (40.148 + 227.599)) |
| = | 0.169086 | / | 0.149948 |
| | = | 1.1276 |
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) |
| = | (560.442 / 1906.928) | / | (524.379 / 1885.222) |
| = | 0.293898 | / | 0.278152 |
| | = | 1.0566 |
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) |
| = | ((273.541 + 372.119) / 2117.72) | / | ((139.334 + 357.493) / 1822.77) |
| = | 0.304884 | / | 0.272567 |
| | = | 1.1186 |
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 |
| = | (243.218 - -5.423 | - | 287.982) | / | 2117.72 |
| | = | -0.018577 |
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.
Watts Water Technologies has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.
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