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Ferrari NV (Ferrari NV) Beneish M-Score : -2.67 (As of Apr. 24, 2024)


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What is Ferrari NV 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 -2.67 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

RACE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.57   Med: -2.67   Max: -2.37
Current: -2.67

During the past 12 years, the highest Beneish M-Score of Ferrari NV was -2.37. The lowest was -3.57. And the median was -2.67.


Ferrari NV Beneish M-Score Historical Data

The historical data trend for Ferrari NV'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.

Ferrari NV Beneish M-Score Chart

Ferrari NV Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.95 -2.75 -2.55 -2.52 -2.67

Ferrari NV 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 Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.52 -2.53 -2.65 -2.65 -2.67

Competitive Comparison of Ferrari NV's Beneish M-Score

For the Auto Manufacturers subindustry, Ferrari NV'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.


Ferrari NV's Beneish M-Score Distribution in the Vehicles & Parts Industry

For the Vehicles & Parts industry and Consumer Cyclical sector, Ferrari NV's Beneish M-Score distribution charts can be found below:

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



Ferrari NV 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 Ferrari NV 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 * 0.8875+0.528 * 0.9643+0.404 * 1.0197+0.892 * 1.2012+0.115 * 0.9225
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9234+4.679 * -0.055333-0.327 * 0.8962
=-2.64

* 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 $1,952 Mil.
Revenue was 1661.287 + 1647.846 + 1596.65 + 1529.985 = $6,436 Mil.
Gross Profit was 810.927 + 816.737 + 809.746 + 768.704 = $3,206 Mil.
Total Current Assets was $4,347 Mil.
Total Assets was $8,780 Mil.
Property, Plant and Equipment(Net PPE) was $1,718 Mil.
Depreciation, Depletion and Amortization(DDA) was $714 Mil.
Selling, General, & Admin. Expense(SGA) was $499 Mil.
Total Current Liabilities was $1,222 Mil.
Long-Term Debt & Capital Lease Obligation was $2,701 Mil.
Net Income was 320.072 + 351.997 + 360.985 + 316.415 = $1,349 Mil.
Non Operating Income was -3.703 + -2.803 + -3.408 + -5.238 = $-15 Mil.
Cash Flow from Operations was 575.277 + 534.784 + 319.037 + 421.353 = $1,850 Mil.
Total Receivables was $1,831 Mil.
Revenue was 1449.118 + 1237.44 + 1365.212 + 1306.148 = $5,358 Mil.
Gross Profit was 679.422 + 588.663 + 647.566 + 658.348 = $2,574 Mil.
Total Current Assets was $4,187 Mil.
Total Assets was $8,227 Mil.
Property, Plant and Equipment(Net PPE) was $1,544 Mil.
Depreciation, Depletion and Amortization(DDA) was $574 Mil.
Selling, General, & Admin. Expense(SGA) was $450 Mil.
Total Current Liabilities was $1,123 Mil.
Long-Term Debt & Capital Lease Obligation was $2,979 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)
=(1951.672 / 6435.768) / (1830.851 / 5357.918)
=0.303254 / 0.341709
=0.8875

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)
=(2573.999 / 5357.918) / (3206.114 / 6435.768)
=0.48041 / 0.498171
=0.9643

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 - (4346.791 + 1717.775) / 8780.057) / (1 - (4186.983 + 1544.306) / 8226.507)
=0.309279 / 0.303314
=1.0197

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
=6435.768 / 5357.918
=1.2012

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))
=(573.786 / (573.786 + 1544.306)) / (714.143 / (714.143 + 1717.775))
=0.270898 / 0.293654
=0.9225

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)
=(498.62 / 6435.768) / (449.551 / 5357.918)
=0.077476 / 0.083904
=0.9234

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)
=((2701.402 + 1221.522) / 8780.057) / ((2978.579 + 1122.951) / 8226.507)
=0.446799 / 0.498575
=0.8962

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
=(1349.469 - -15.152 - 1850.451) / 8780.057
=-0.055333

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.

Ferrari NV has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.


Ferrari NV Beneish M-Score Related Terms

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Ferrari NV (Ferrari NV) Business Description

Address
Via Abetone Inferiore n. 4, Maranello, ITA, I-41053
Ferrari engineers and manufactures some of the world's most expensive exotic sports cars. The Ferrari brand is synonymous with Formula One racing, exclusivity, Italian design, and state-of-the-art technology. Ferrari also has a captive finance company that provides funding for dealers and clients. In 2022, Europe, Middle East, and Africa accounted for 48% of revenue, the Americas was 28%, China was 12%, and the rest of Asia was 12%.