Switch to:
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
BB&T Corp (NYSE:BBT)
Beneish M-Score
-2.37 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

BB&T Corp has a M-score of -2.37 suggests that the company is not a manipulator.

BBT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.61   Max: -1.08
Current: -2.37

-3.61
-1.08

During the past 13 years, the highest Beneish M-Score of BB&T Corp was -1.08. The lowest was -3.61. And the median was -2.43.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 BB&T Corp 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 * 1+0.528 * 1+0.404 * 0.9999+0.892 * 1.1199+0.115 * 0.9155
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0179+4.679 * -0.0031-0.327 * 0.9131
=-2.37

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $0 Mil.
Revenue was 2780 + 2727 + 2774 + 2747 = $11,028 Mil.
Gross Profit was 2780 + 2727 + 2774 + 2747 = $11,028 Mil.
Total Current Assets was $0 Mil.
Total Assets was $220,501 Mil.
Property, Plant and Equipment(Net PPE) was $2,104 Mil.
Depreciation, Depletion and Amortization(DDA) was $565 Mil.
Selling, General & Admin. Expense(SGA) was $4,732 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $21,635 Mil.
Net Income was 421 + 636 + 642 + 584 = $2,283 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 158 + 2372 + -561 + 991 = $2,960 Mil.
Accounts Receivable was $0 Mil.
Revenue was 2545 + 2519 + 2452 + 2331 = $9,847 Mil.
Gross Profit was 2545 + 2519 + 2452 + 2331 = $9,847 Mil.
Total Current Assets was $0 Mil.
Total Assets was $212,405 Mil.
Property, Plant and Equipment(Net PPE) was $2,001 Mil.
Depreciation, Depletion and Amortization(DDA) was $481 Mil.
Selling, General & Admin. Expense(SGA) was $4,151 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $22,823 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(0 / 11028) / (0 / 9847)
=0 / 0
=1

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)
=(9847 / 9847) / (11028 / 11028)
=1 / 1
=1

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (0 + 2104) / 220501) / (1 - (0 + 2001) / 212405)
=0.99045809 / 0.99057932
=0.9999

4. SGI = Sales Growth Index

Ratio of sales 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
=11028 / 9847
=1.1199

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(481 / (481 + 2001)) / (565 / (565 + 2104))
=0.19379533 / 0.21168977
=0.9155

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(4732 / 11028) / (4151 / 9847)
=0.42908959 / 0.42154971
=1.0179

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((21635 + 0) / 220501) / ((22823 + 0) / 212405)
=0.09811747 / 0.10745039
=0.9131

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
=(2283 - 0 - 2960) / 220501
=-0.0031

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

BB&T Corp has a M-score of -2.37 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

BB&T Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score

BB&T Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1111111111
GMI 1111111111
AQI 1.00041.00010.99991.00011.00021.00051.00051.000510.9999
SGI 0.95630.9750.99491.01391.04131.06281.10411.12021.1231.1199
DEPI 0.9761.00520.99391.04211.00840.95550.94280.87320.89590.9155
SGAI 1.04631.03831.01671.01551.01881.00791.01531.01921.01521.0179
LVGI 1.06240.9781.04460.99690.90740.86750.9040.85850.88480.9131
TATA -0.00580.0007-0.0011-0.0071-0.004-0.0059-0.00690.0046-0.0011-0.0031
M-score -2.58-2.50-2.51-2.50-2.43-2.41-2.40-2.32-2.35-2.37
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK