Eaton Beneish M-Score Historical Data
The historical data trend for Eaton'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.
|
Eaton Annual Data
|
|
Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
|
|
|
|
|
|
-2.78 |
-2.83 |
-2.43 |
-2.32 |
-2.53 |
|
Eaton Quarterly Data
|
|
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-2.32 |
-2.40 |
-2.46 |
-2.46 |
-2.53 |
Competitive Comparison
For the Specialty Industrial Machinery subindustry, Eaton'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.
Eaton Beneish M-Score Distribution
For the Industrial Products industry and Industrials sector, Eaton's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Eaton's Beneish M-Score falls into.
Eaton 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 Eaton 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 * 0.9822 | + | 0.528 * 0.9127 | + | 0.404 * 0.9122 | + | 0.892 * 1.1178 | + | 0.115 * 1.1257 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0521 | + | 4.679 * -0.012984 | - | 0.327 * 0.9943 |
| = | -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 $4,475 Mil.
Revenue was 5967 + 5880 + 5866 + 5483 = $23,196 Mil.
Gross Profit was 2235 + 2196 + 2119 + 1884 = $8,434 Mil.
Total Current Assets was $11,675 Mil.
Total Assets was $38,432 Mil.
Property, Plant and Equipment(Net PPE) was $4,178 Mil.
Depreciation, Depletion and Amortization(DDA) was $926 Mil.
Selling, General, & Admin. Expense(SGA) was $3,795 Mil.
Total Current Liabilities was $7,747 Mil.
Long-Term Debt & Capital Lease Obligation was $8,777 Mil.
Net Income was 945 + 891 + 744 + 638 = $3,218 Mil.
Non Operating Income was 37 + 52 + -7 + 11 = $93 Mil.
Cash Flow from Operations was 1298 + 1141 + 850 + 335 = $3,624 Mil.
|
Total Receivables was $4,076 Mil.
Revenue was 5384 + 5313 + 5212 + 4843 = $20,752 Mil.
Gross Profit was 1838 + 1768 + 1707 + 1574 = $6,887 Mil.
Total Current Assets was $8,746 Mil.
Total Assets was $35,014 Mil.
Property, Plant and Equipment(Net PPE) was $3,717 Mil.
Depreciation, Depletion and Amortization(DDA) was $954 Mil.
Selling, General, & Admin. Expense(SGA) was $3,227 Mil.
Total Current Liabilities was $6,360 Mil.
Long-Term Debt & Capital Lease Obligation was $8,780 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) |
| = | (4475 / 23196) | / | (4076 / 20752) |
| = | 0.192921 | / | 0.196415 |
| | = | 0.9822 |
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) |
| = | (6887 / 20752) | / | (8434 / 23196) |
| = | 0.331872 | / | 0.363597 |
| | = | 0.9127 |
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 - (11675 + 4178) / 38432) | / | (1 - (8746 + 3717) / 35014) |
| = | 0.587505 | / | 0.644057 |
| | = | 0.9122 |
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 |
| = | 23196 | / | 20752 |
| | = | 1.1178 |
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)) |
| = | (954 / (954 + 3717)) | / | (926 / (926 + 4178)) |
| = | 0.204239 | / | 0.181426 |
| | = | 1.1257 |
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) |
| = | (3795 / 23196) | / | (3227 / 20752) |
| = | 0.163606 | / | 0.155503 |
| | = | 1.0521 |
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) |
| = | ((8777 + 7747) / 38432) | / | ((8780 + 6360) / 35014) |
| = | 0.429954 | / | 0.432398 |
| | = | 0.9943 |
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 |
| = | (3218 - 93 | - | 3624) | / | 38432 |
| | = | -0.012984 |
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.
Eaton has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
ETN has been successfully added to your