Fortrea Holdings Beneish M-Score Historical Data
The historical data trend for Fortrea Holdings'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.
Fortrea Holdings Beneish M-Score Chart
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Fortrea Holdings Annual Data
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Trend |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
- |
-3.26 |
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Fortrea Holdings Quarterly Data
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Dec20 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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- |
- |
- |
- |
-3.26 |
Competitive Comparison of Fortrea Holdings's Beneish M-Score
For the Biotechnology subindustry, Fortrea Holdings'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.
Fortrea Holdings's Beneish M-Score Distribution in the Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Fortrea Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Fortrea Holdings's Beneish M-Score falls into.
Fortrea Holdings 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 Fortrea Holdings 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 * 1.0174 | + | 0.528 * 1.261 | + | 0.404 * 0.9865 | + | 0.892 * 1.0042 | + | 0.115 * 1.1845 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.202 | + | 4.679 * -0.042229 | - | 0.327 * 3.2066 |
| = | -3.26 |
* 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 $1,074 Mil.
Revenue was 775.4 + 776.4 + 793 + 764.2 = $3,109 Mil.
Gross Profit was 119.7 + 129.1 + 143.6 + 124.5 = $517 Mil.
Total Current Assets was $1,253 Mil.
Total Assets was $4,357 Mil.
Property, Plant and Equipment(Net PPE) was $221 Mil.
Depreciation, Depletion and Amortization(DDA) was $96 Mil.
Selling, General, & Admin. Expense(SGA) was $338 Mil.
Total Current Liabilities was $776 Mil.
Long-Term Debt & Capital Lease Obligation was $1,632 Mil.
Net Income was -36 + -13.1 + 28.3 + -11.6 = $-32 Mil.
Non Operating Income was -3.4 + -8.9 + 1.9 + -5.4 = $-16 Mil.
Cash Flow from Operations was 12.4 + 0.8 + 150.8 + 3.4 = $167 Mil.
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Total Receivables was $1,051 Mil.
Revenue was 761.7 + 762.3 + 793.1 + 779 = $3,096 Mil.
Gross Profit was 161.9 + 167.5 + 178.8 + 140.9 = $649 Mil.
Total Current Assets was $1,247 Mil.
Total Assets was $4,288 Mil.
Property, Plant and Equipment(Net PPE) was $165 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General, & Admin. Expense(SGA) was $280 Mil.
Total Current Liabilities was $699 Mil.
Long-Term Debt & Capital Lease Obligation was $40 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) |
| = | (1074.1 / 3109) | / | (1051.4 / 3096.1) |
| = | 0.345481 | / | 0.339589 |
| | = | 1.0174 |
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) |
| = | (649.1 / 3096.1) | / | (516.9 / 3109) |
| = | 0.209651 | / | 0.166259 |
| | = | 1.261 |
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 - (1253.1 + 220.9) / 4357.2) | / | (1 - (1246.9 + 164.9) / 4287.9) |
| = | 0.661709 | / | 0.670748 |
| | = | 0.9865 |
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 |
| = | 3109 | / | 3096.1 |
| | = | 1.0042 |
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)) |
| = | (92.7 / (92.7 + 164.9)) | / | (96.4 / (96.4 + 220.9)) |
| = | 0.35986 | / | 0.303813 |
| | = | 1.1845 |
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) |
| = | (338.2 / 3109) | / | (280.2 / 3096.1) |
| = | 0.108781 | / | 0.090501 |
| | = | 1.202 |
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) |
| = | ((1632.4 + 775.9) / 4357.2) | / | ((40.1 + 699) / 4287.9) |
| = | 0.552717 | / | 0.172369 |
| | = | 3.2066 |
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 |
| = | (-32.4 - -15.8 | - | 167.4) | / | 4357.2 |
| | = | -0.042229 |
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.
Fortrea Holdings has a M-score of -3.26 suggests that the company is unlikely to be a manipulator.
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