RB Global (TSX:RBA) Beneish M-Score : -1.81 (As of May. 15, 2024)

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What is RB Global 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 -1.81 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:RBA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.01 Med: -2.46 Max: -0.13
Current: -1.81

During the past 13 years, the highest Beneish M-Score of RB Global was -0.13. The lowest was -3.01. And the median was -2.46.

RB Global Beneish M-Score Historical Data

The historical data trend for RB Global'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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RB Global Beneish M-Score Chart

RB Global Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.84

-2.71

-2.47

-2.76

-0.41

RB Global Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-0.72	-0.66	-0.75	-0.41	-1.81

Competitive Comparison of RB Global's Beneish M-Score

For the Specialty Business Services subindustry, RB Global'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.

RB Global's Beneish M-Score Distribution in the Business Services Industry

For the Business Services industry and Industrials sector, RB Global's Beneish M-Score distribution charts can be found below:

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

RB Global 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 RB Global for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.5098

0.528 * 1.1583

0.404 * 0.9806

0.892 * 2.2995

0.115 * 0.2771

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.6189

4.679 * -0.023655

0.327 * 0.9688

-1.81

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was C$1,298 Mil.
Revenue was 1441.178 + 1396.471 + 1379.891 + 1470.096 = C$5,688 Mil.
Gross Profit was 697.239 + 662.214 + 640.016 + 700.571 = C$2,700 Mil.
Total Current Assets was C$2,551 Mil.
Total Assets was C$16,304 Mil.
Property, Plant and Equipment(Net PPE) was C$3,617 Mil.
Depreciation, Depletion and Amortization(DDA) was C$761 Mil.
Selling, General, & Admin. Expense(SGA) was C$1,067 Mil.
Total Current Liabilities was C$1,982 Mil.
Long-Term Debt & Capital Lease Obligation was C$5,770 Mil.
Net Income was 145.377 + 113.097 + 85.787 + 115.455 = C$460 Mil.
Non Operating Income was -16.379 + -25.088 + -30.986 + -58.193 = C$-131 Mil.
Cash Flow from Operations was 168.929 + 452.522 + 212.166 + 142.426 = C$976 Mil.

Total Receivables was C$1,108 Mil.
Revenue was 701.117 + 603.038 + 548.9 + 620.354 = C$2,473 Mil.
Gross Profit was 389.281 + 336.636 + 297.06 + 337.129 = C$1,360 Mil.
Total Current Assets was C$2,504 Mil.
Total Assets was C$16,239 Mil.
Property, Plant and Equipment(Net PPE) was C$3,441 Mil.
Depreciation, Depletion and Amortization(DDA) was C$174 Mil.
Selling, General, & Admin. Expense(SGA) was C$750 Mil.
Total Current Liabilities was C$1,922 Mil.
Long-Term Debt & Capital Lease Obligation was C$6,047 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)
	=	(1298.373 / 5687.636)	/	(1107.639 / 2473.409)
	=	0.22828	/	0.447819
	=	0.5098

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)
	=	(1360.106 / 2473.409)	/	(2700.04 / 5687.636)
	=	0.549891	/	0.474721
	=	1.1583

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 - (2551.265 + 3617.225) / 16304.383)	/	(1 - (2503.579 + 3440.864) / 16238.984)
	=	0.621667	/	0.63394
	=	0.9806

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
	=	5687.636	/	2473.409
	=	2.2995

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))
	=	(174.12 / (174.12 + 3440.864))	/	(760.936 / (760.936 + 3617.225))
	=	0.048166	/	0.173803
	=	0.2771

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)
	=	(1066.883 / 5687.636)	/	(749.703 / 2473.409)
	=	0.187579	/	0.303105
	=	0.6189

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)
	=	((5769.585 + 1981.941) / 16304.383)	/	((6046.928 + 1921.777) / 16238.984)
	=	0.475426	/	0.490715
	=	0.9688

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
	=	(459.716 - -130.646	-	976.043)	/	16304.383
	=	-0.023655

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.

RB Global has a M-score of -1.81 suggests that the company is unlikely to be a manipulator.

RB Global Beneish M-Score Related Terms

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RB Global (TSX:RBA) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Business Services » RB Global Inc (TSX:RBA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RBA:USA J1F:Germany

Address

Two Westbrook Corporate Center, Suite 500, Westchester, IL, USA, 60154

Website

https://www.rbglobal.com

RB Global operates the world's largest auction for heavy equipment. The company started as a live auctioneer of industrial equipment, since then it has greatly expanded its operations to include the sale of construction, agricultural, oilfield, and transportation equipment. RB Global operates over 40 live auction sites in more than 12 countries, along with online marketplaces, including IronPlanet, Marketplace-E, and GovPlanet. Its agricultural auctions are frequently much smaller venues and can include liquidations of single farms. The company holds over 300 auctions yearly and sells $6 billion worth of equipment.

Executives

Baron Concors

Senior Officer