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BlackRock Inc (NYSE:BLK)
Beneish M-Score
-2.32 (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.

BlackRock Inc has a M-score of -2.32 suggests that the company is not a manipulator.

BLK' s Beneish M-Score Range Over the Past 10 Years
Min: -12.72   Max: -0.89
Current: -2.32

-12.72
-0.89

During the past 13 years, the highest Beneish M-Score of BlackRock Inc was -0.89. The lowest was -12.72. And the median was -2.46.


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 BlackRock Inc 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 * 1.0256+0.528 * 1.0031+0.404 * 0.9955+0.892 * 1.0289+0.115 * 1.2509
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9916+4.679 * 0.0008-0.327 * 0.7567
=-2.32

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $2,237 Mil.
Revenue was 2863 + 2910 + 2905 + 2723 = $11,401 Mil.
Gross Profit was 2760 + 2808 + 2800 + 2624 = $10,992 Mil.
Total Current Assets was $8,468 Mil.
Total Assets was $225,261 Mil.
Property, Plant and Equipment(Net PPE) was $581 Mil.
Depreciation, Depletion and Amortization(DDA) was $247 Mil.
Selling, General & Admin. Expense(SGA) was $6,152 Mil.
Total Current Liabilities was $3,039 Mil.
Long-Term Debt was $4,930 Mil.
Net Income was 861 + 843 + 819 + 822 = $3,345 Mil.
Non Operating Income was 57 + -10 + 6 + 98 = $151 Mil.
Cash Flow from Operations was 1157 + 1351 + 986 + -490 = $3,004 Mil.
Accounts Receivable was $2,120 Mil.
Revenue was 2784 + 2849 + 2778 + 2670 = $11,081 Mil.
Gross Profit was 2688 + 2759 + 2689 + 2581 = $10,717 Mil.
Total Current Assets was $8,121 Mil.
Total Assets was $239,792 Mil.
Property, Plant and Equipment(Net PPE) was $467 Mil.
Depreciation, Depletion and Amortization(DDA) was $278 Mil.
Selling, General & Admin. Expense(SGA) was $6,030 Mil.
Total Current Liabilities was $2,900 Mil.
Long-Term Debt was $8,311 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)
=(2237 / 11401) / (2120 / 11081)
=0.19621086 / 0.19131847
=1.0256

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)
=(2808 / 11081) / (2760 / 11401)
=0.96715098 / 0.96412595
=1.0031

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 - (8468 + 581) / 225261) / (1 - (8121 + 467) / 239792)
=0.95982882 / 0.96418563
=0.9955

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
=11401 / 11081
=1.0289

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))
=(278 / (278 + 467)) / (247 / (247 + 581))
=0.37315436 / 0.29830918
=1.2509

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)
=(6152 / 11401) / (6030 / 11081)
=0.53960179 / 0.54417471
=0.9916

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)
=((4930 + 3039) / 225261) / ((8311 + 2900) / 239792)
=0.03537674 / 0.04675302
=0.7567

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
=(3345 - 151 - 3004) / 225261
=0.0008

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.

BlackRock Inc has a M-score of -2.32 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.

BlackRock Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.76420.5550.69742.05440.66550.88721.11650.9160.86681.0256
GMI 11.91490.99721.01670.86860.61930.99630.99550.99811.0031
AQI 1.0640.99870.83411.16521.00550.99990.99591.00540.99740.9955
SGI 1.7612.30921.04530.92811.83231.05451.02821.09031.08851.0289
DEPI 0.76120.59190.90711.34560.83431.17451.0330.97090.95571.2509
SGAI 1.22880.85030.81891.2641.15332.65820.98391.00830.96230.9916
LVGI 0.16891.72883.1280.36320.85561.18411.11420.85661.01390.7567
TATA -0.0227-0.0043-0.028-0.0032-0.0032-0.00290.0005-0.00460.00040.001
M-score -0.97-1.52-3.59-1.31-2.13-3.08-2.38-2.46-2.53-2.32

BlackRock Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.9161.00451.7120.54790.86680.92370.52990.9451.0256
GMI 0.99550.99590.99610.9970.99810.99981.0021.00361.0031
AQI 1.005410.98950.99960.99741.00421.01131.00260.9955
SGI 1.09031.09061.09261.11391.08851.07051.05271.02241.0289
DEPI 0.97090.97870.96990.93240.95571.09641.14431.18721.2509
SGAI 1.00830.99990.95910.95830.96230.97120.98450.9820.9916
LVGI 0.85660.94481.15110.97431.01390.96240.56250.66240.7567
TATA -0.0046-0.00220.00030.00060.00030.00160.00090.00040.0008
M-score -2.46-2.39-1.79-2.79-2.53-2.45-2.69-2.37-2.32
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