Embraer Beneish M-Score Historical Data
The historical data trend for Embraer'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.
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Embraer Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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|
|
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-3.42 |
-1.07 |
-2.56 |
-2.90 |
- |
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Embraer Quarterly Data
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Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Dec23 |
| Beneish M-Score |
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-3.07 |
-2.97 |
-2.90 |
-2.50 |
- |
Competitive Comparison
For the Aerospace & Defense subindustry, Embraer'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.
Embraer Beneish M-Score Distribution
For the Aerospace & Defense industry and Industrials sector, Embraer's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Embraer's Beneish M-Score falls into.
Embraer 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 Embraer 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 * 0.8573 | + | 0.528 * 0.9073 | + | 0.404 * 0.9809 | + | 0.892 * 1.1667 | + | 0.115 * 0.9467 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0541 | + | 4.679 * 0.001712 | - | 0.327 * 1.0228 |
| = | -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 (Mar23) TTM: | Last Year (Mar22) TTM: |
Total Receivables was $928 Mil.
Revenue was 716.7 + 1991.6 + 929 + 1018.9 = $4,656 Mil.
Gross Profit was 113.7 + 380.8 + 177.4 + 233.3 = $905 Mil.
Total Current Assets was $6,025 Mil.
Total Assets was $10,458 Mil.
Property, Plant and Equipment(Net PPE) was $1,734 Mil.
Depreciation, Depletion and Amortization(DDA) was $213 Mil.
Selling, General, & Admin. Expense(SGA) was $483 Mil.
Total Current Liabilities was $3,444 Mil.
Long-Term Debt & Capital Lease Obligation was $3,096 Mil.
Net Income was -70.8 + 22.9 + -30.2 + 74.2 = $-4 Mil.
Non Operating Income was -4 + -312.9 + 29.1 + 25.2 = $-263 Mil.
Cash Flow from Operations was -668.7 + 546.8 + 323.7 + 39 = $241 Mil.
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Total Receivables was $927 Mil.
Revenue was 600.9 + 1301.3 + 958.1 + 1130.5 = $3,991 Mil.
Gross Profit was 120.7 + 195.8 + 181.7 + 205.7 = $704 Mil.
Total Current Assets was $5,537 Mil.
Total Assets was $9,868 Mil.
Property, Plant and Equipment(Net PPE) was $1,735 Mil.
Depreciation, Depletion and Amortization(DDA) was $201 Mil.
Selling, General, & Admin. Expense(SGA) was $393 Mil.
Total Current Liabilities was $2,756 Mil.
Long-Term Debt & Capital Lease Obligation was $3,278 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) |
| = | (927.5 / 4656.2) | / | (927.3 / 3990.8) |
| = | 0.199197 | / | 0.232359 |
| | = | 0.8573 |
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) |
| = | (703.9 / 3990.8) | / | (905.2 / 4656.2) |
| = | 0.176381 | / | 0.194407 |
| | = | 0.9073 |
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 - (6025.1 + 1733.6) / 10457.7) | / | (1 - (5536.6 + 1735.2) / 9868.4) |
| = | 0.258087 | / | 0.263123 |
| | = | 0.9809 |
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 |
| = | 4656.2 | / | 3990.8 |
| | = | 1.1667 |
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)) |
| = | (200.9 / (200.9 + 1735.2)) | / | (213.4 / (213.4 + 1733.6)) |
| = | 0.103765 | / | 0.109605 |
| | = | 0.9467 |
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) |
| = | (483.2 / 4656.2) | / | (392.9 / 3990.8) |
| = | 0.103776 | / | 0.098451 |
| | = | 1.0541 |
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) |
| = | ((3096.2 + 3444.1) / 10457.7) | / | ((3278 + 2756.3) / 9868.4) |
| = | 0.625405 | / | 0.611477 |
| | = | 1.0228 |
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 |
| = | (-3.9 - -262.6 | - | 240.8) | / | 10457.7 |
| | = | 0.001712 |
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.
Embraer has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.
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