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BlackRock Inc (NYSE:BLK)
Beneish M-Score
-2.45 (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 -2.45 suggests that the company is not a manipulator.

BLK' s Beneish M-Score Range Over the Past 10 Years
Min: -12.72   Max: -0.31
Current: -2.45

-12.72
-0.31

During the past 13 years, the highest Beneish M-Score of BlackRock Inc was -0.31. The lowest was -12.72. And the median was -2.39.


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 * 0.8775+0.528 * 1.0025+0.404 * 0.9959+0.892 * 1.0151+0.115 * 1.1389
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9902+4.679 * 0.0008-0.327 * 0.6768
=-2.45

* 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 $2,526 Mil.
Revenue was 2624 + 2863 + 2910 + 2905 = $11,302 Mil.
Gross Profit was 2527 + 2760 + 2808 + 2800 = $10,895 Mil.
Total Current Assets was $7,610 Mil.
Total Assets was $222,958 Mil.
Property, Plant and Equipment(Net PPE) was $581 Mil.
Depreciation, Depletion and Amortization(DDA) was $240 Mil.
Selling, General & Admin. Expense(SGA) was $6,096 Mil.
Total Current Liabilities was $2,057 Mil.
Long-Term Debt was $4,968 Mil.
Net Income was 657 + 861 + 843 + 819 = $3,180 Mil.
Non Operating Income was -2 + 57 + -10 + 6 = $51 Mil.
Cash Flow from Operations was -565 + 1157 + 1351 + 1005 = $2,948 Mil.
Accounts Receivable was $2,836 Mil.
Revenue was 2723 + 2784 + 2849 + 2778 = $11,134 Mil.
Gross Profit was 2624 + 2688 + 2759 + 2689 = $10,760 Mil.
Total Current Assets was $7,408 Mil.
Total Assets was $242,714 Mil.
Property, Plant and Equipment(Net PPE) was $537 Mil.
Depreciation, Depletion and Amortization(DDA) was $268 Mil.
Selling, General & Admin. Expense(SGA) was $6,065 Mil.
Total Current Liabilities was $2,398 Mil.
Long-Term Debt was $8,902 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)
=(2526 / 11302) / (2836 / 11134)
=0.22350027 / 0.25471529
=0.8775

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)
=(2760 / 11134) / (2527 / 11302)
=0.9664092 / 0.96398867
=1.0025

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 - (7610 + 581) / 222958) / (1 - (7408 + 537) / 242714)
=0.96326214 / 0.967266
=0.9959

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
=11302 / 11134
=1.0151

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))
=(268 / (268 + 537)) / (240 / (240 + 581))
=0.33291925 / 0.29232643
=1.1389

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)
=(6096 / 11302) / (6065 / 11134)
=0.53937356 / 0.54472786
=0.9902

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)
=((4968 + 2057) / 222958) / ((8902 + 2398) / 242714)
=0.03150818 / 0.04655685
=0.6768

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
=(3180 - 51 - 2948) / 222958
=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 -2.45 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 0.9161.00451.7120.54790.86680.92370.52990.9451.02560.8775
GMI 0.99550.99590.99610.9970.99810.99981.0021.00361.00311.0025
AQI 1.005410.98950.99960.99741.00421.01131.00260.99550.9959
SGI 1.09031.09061.09261.11391.08851.07051.05271.02241.02891.0151
DEPI 0.97090.97870.96990.93240.95571.09641.14431.18721.25091.1389
SGAI 1.00830.99990.95910.95830.96230.97120.98450.9820.99160.9902
LVGI 0.85660.94481.15110.97431.01390.96240.56250.66240.75670.6768
TATA -0.0046-0.00220.00030.00060.00030.00180.00110.00060.0010.0008
M-score -2.46-2.39-1.79-2.79-2.53-2.45-2.69-2.37-2.32-2.45
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