Becton, Dickinson and Co (XSWX:BDX) Beneish M-Score : -2.55 (As of May. 06, 2024)

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What is Becton, Dickinson and Co 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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Becton, Dickinson and Co's Beneish M-Score or its related term are showing as below:

XSWX:BDX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.99 Med: -2.57 Max: -0.89
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Becton, Dickinson and Co was -0.89. The lowest was -2.99. And the median was -2.57.

Becton, Dickinson and Co Beneish M-Score Historical Data

The historical data trend for Becton, Dickinson and Co'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.

Becton, Dickinson and Co Beneish M-Score Chart

Becton, Dickinson and Co Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

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-2.63

-2.58

-2.70

-2.56

-2.41

Becton, Dickinson and Co 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															-2.44	-2.45	-2.41	-2.60	-2.55

Competitive Comparison of Becton, Dickinson and Co's Beneish M-Score

For the Medical Instruments & Supplies subindustry, Becton, Dickinson and Co'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.

Becton, Dickinson and Co's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Becton, Dickinson and Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Becton, Dickinson and Co's Beneish M-Score falls into.

Becton, Dickinson and Co 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 Becton, Dickinson and Co 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 * 1.0385

0.528 * 1.0974

0.404 * 0.9724

0.892 * 0.9804

0.115 * 1.0389

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9559

4.679 * -0.03715

0.327 * 1.0047

-2.59

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was CHF2,274 Mil.
Revenue was 4482.987 + 4069.749 + 4576.265 + 4392.151 = CHF17,521 Mil.
Gross Profit was 2047.334 + 1752.95 + 1530.22 + 1890.84 = CHF7,221 Mil.
Total Current Assets was CHF9,188 Mil.
Total Assets was CHF48,124 Mil.
Property, Plant and Equipment(Net PPE) was CHF5,857 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF2,035 Mil.
Selling, General, & Admin. Expense(SGA) was CHF4,204 Mil.
Total Current Liabilities was CHF6,511 Mil.
Long-Term Debt & Capital Lease Obligation was CHF14,213 Mil.
Net Income was 477.178 + 243.009 + 97.157 + 366.463 = CHF1,184 Mil.
Non Operating Income was -91.526 + -68.319 + -181.719 + -47.721 = CHF-389 Mil.
Cash Flow from Operations was 469.181 + 727.297 + 1191.97 + 972.432 = CHF3,361 Mil.

Total Receivables was CHF2,233 Mil.
Revenue was 4461.836 + 4272.318 + 4633.881 + 4502.698 = CHF17,871 Mil.
Gross Profit was 2068.493 + 1987.103 + 2021.544 + 2005.403 = CHF8,083 Mil.
Total Current Assets was CHF8,873 Mil.
Total Assets was CHF50,342 Mil.
Property, Plant and Equipment(Net PPE) was CHF5,882 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF2,152 Mil.
Selling, General, & Admin. Expense(SGA) was CHF4,486 Mil.
Total Current Liabilities was CHF6,760 Mil.
Long-Term Debt & Capital Lease Obligation was CHF14,817 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)
	=	(2273.927 / 17521.152)	/	(2233.232 / 17870.733)
	=	0.129782	/	0.124966
	=	1.0385

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)
	=	(8082.543 / 17870.733)	/	(7221.344 / 17521.152)
	=	0.452278	/	0.41215
	=	1.0974

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 - (9188.124 + 5856.763) / 48123.91)	/	(1 - (8872.769 + 5882.478) / 50341.647)
	=	0.687372	/	0.706898
	=	0.9724

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
	=	17521.152	/	17870.733
	=	0.9804

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))
	=	(2152.252 / (2152.252 + 5882.478))	/	(2034.737 / (2034.737 + 5856.763))
	=	0.267869	/	0.257839
	=	1.0389

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)
	=	(4204.323 / 17521.152)	/	(4486.238 / 17870.733)
	=	0.239957	/	0.251038
	=	0.9559

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)
	=	((14213.157 + 6510.772) / 48123.91)	/	((14817.255 + 6759.852) / 50341.647)
	=	0.430637	/	0.428613
	=	1.0047

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
	=	(1183.807 - -389.285	-	3360.88)	/	48123.91
	=	-0.03715

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.

Becton, Dickinson and Co has a M-score of -2.59 suggests that the company is unlikely to be a manipulator.

Becton, Dickinson and Co Beneish M-Score Related Terms

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Becton, Dickinson and Co (XSWX:BDX) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Becton, Dickinson and Co (XSWX:BDX) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

BDX:USA BDX:Mexico 1BDX:Italy BOX:Germany B1DX34:Brazil

Address

1 Becton Drive, Franklin Lakes, NJ, USA, 07417-1880

Website

https://www.bd.com

Becton, Dickinson is the world's largest manufacturer and distributor of medical surgical products, such as needles, syringes, and sharps-disposal units. The company also manufactures pre-filled devices, diagnostic instruments and reagents, as well as flow cytometry and cell-imaging systems. BD Medical is nearly half of the total business, while BD Life Sciences (26% of estimated 2023 revenue) and BD Interventional (25%) account for the remainder. International revenue accounts for 43% of the company's business.