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BB&T Corp (NYSE:BBT)
Beneish M-Score
-2.41 (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 -2.41 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: -2.41

-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 -2.44.


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 * 1.0005+0.892 * 1.0628+0.115 * 0.9555
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0079+4.679 * -0.0059-0.327 * 0.8675
=-2.41

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar16) TTM:Last Year (Mar15) TTM:
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.
Net Income was 564 + 539 + 529 + 491 = $2,123 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -130 + 982 + 1887 + 639 = $3,378 Mil.
Accounts Receivable was $0 Mil.
Revenue was 2309 + 2357 + 2298 + 2301 = $9,265 Mil.
Gross Profit was 2309 + 2357 + 2298 + 2301 = $9,265 Mil.
Total Current Assets was $0 Mil.
Total Assets was $189,228 Mil.
Property, Plant and Equipment(Net PPE) was $1,879 Mil.
Depreciation, Depletion and Amortization(DDA) was $427 Mil.
Selling, General & Admin. Expense(SGA) was $3,875 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $23,437 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 / 9847) / (0 / 9265)
=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)
=(9265 / 9265) / (9847 / 9847)
=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 + 2001) / 212405) / (1 - (0 + 1879) / 189228)
=0.99057932 / 0.99007018
=1.0005

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
=9847 / 9265
=1.0628

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))
=(427 / (427 + 1879)) / (481 / (481 + 2001))
=0.18516912 / 0.19379533
=0.9555

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)
=(4151 / 9847) / (3875 / 9265)
=0.42154971 / 0.41824069
=1.0079

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)
=((22823 + 0) / 212405) / ((23437 + 0) / 189228)
=0.10745039 / 0.12385588
=0.8675

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
=(2123 - 0 - 3378) / 212405
=-0.0059

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 -2.41 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 own currency.

BB&T Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 11110.59390.61590111
GMI 1111111111
AQI 1.00021.00011.00111.00090.99781.00111.000411.00041.0002
SGI 1.06471.06821.11741.18061.05680.92921.12260.98720.95871.0495
DEPI 1.15890.84861.31710.89971.0261.05040.95390.93320.9761.0084
SGAI 1.09280.94380.99411.04951.05621.09861.0050.98261.10351.0143
LVGI 1.09061.07550.84161.08711.07280.90280.82951.13361.06240.9074
TATA 0.00620.0052-0.02520.0081-0.0133-0.0188-0.0093-0.02-0.0059-0.004
M-score -2.42-2.43-2.40-2.33-2.90-2.96-3.28-2.63-2.59-2.43

BB&T Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1000111111
GMI 1111111111
AQI 11.00041.00051.00051.00041.00010.99991.00011.00021.0005
SGI 0.99740.97040.95080.96050.95630.9750.99491.01391.04131.0628
DEPI 0.93320.95420.97490.96810.9761.00520.99391.04211.00840.9555
SGAI 1.03181.04031.02970.99951.04631.03831.01671.01551.01881.0079
LVGI 1.13361.25031.10071.06071.06240.9781.04460.99690.90740.8675
TATA -0.0198-0.0191-0.0107-0.0157-0.00580.0007-0.0012-0.0072-0.004-0.0059
M-score -2.63-3.61-3.53-3.53-2.58-2.50-2.51-2.50-2.43-2.41
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