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BlackRock Inc (NYSE:BLK)
Beneish M-Score
-2.28 (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 -2.28 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: -2.28

-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 * 1.2358+0.528 * 1.0021+0.404 * 0.9938+0.892 * 0.9947+0.115 * 1.1243
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0055+4.679 * 0.003-0.327 * 1.1051
=-2.28

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $2,885 Mil.
Revenue was 2804 + 2624 + 2863 + 2910 = $11,201 Mil.
Gross Profit was 2695 + 2527 + 2760 + 2808 = $10,790 Mil.
Total Current Assets was $8,122 Mil.
Total Assets was $222,055 Mil.
Property, Plant and Equipment(Net PPE) was $576 Mil.
Depreciation, Depletion and Amortization(DDA) was $233 Mil.
Selling, General & Admin. Expense(SGA) was $6,069 Mil.
Total Current Liabilities was $2,679 Mil.
Long-Term Debt was $4,950 Mil.
Net Income was 789 + 657 + 861 + 843 = $3,150 Mil.
Non Operating Income was 20 + -2 + 57 + -10 = $65 Mil.
Cash Flow from Operations was 467 + -565 + 1157 + 1351 = $2,410 Mil.
Accounts Receivable was $2,347 Mil.
Revenue was 2905 + 2723 + 2784 + 2849 = $11,261 Mil.
Gross Profit was 2800 + 2624 + 2688 + 2759 = $10,871 Mil.
Total Current Assets was $7,318 Mil.
Total Assets was $237,008 Mil.
Property, Plant and Equipment(Net PPE) was $545 Mil.
Depreciation, Depletion and Amortization(DDA) was $261 Mil.
Selling, General & Admin. Expense(SGA) was $6,068 Mil.
Total Current Liabilities was $2,421 Mil.
Long-Term Debt was $4,947 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)
=(2885 / 11201) / (2347 / 11261)
=0.25756629 / 0.20841844
=1.2358

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)
=(10871 / 11261) / (10790 / 11201)
=0.9653672 / 0.96330685
=1.0021

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 - (8122 + 576) / 222055) / (1 - (7318 + 545) / 237008)
=0.96082952 / 0.9668239
=0.9938

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
=11201 / 11261
=0.9947

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))
=(261 / (261 + 545)) / (233 / (233 + 576))
=0.32382134 / 0.28800989
=1.1243

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)
=(6069 / 11201) / (6068 / 11261)
=0.54182662 / 0.5388509
=1.0055

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)
=((4950 + 2679) / 222055) / ((4947 + 2421) / 237008)
=0.03435635 / 0.03108756
=1.1051

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
=(3150 - 65 - 2410) / 222055
=0.003

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 -2.28 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 0.5550.69742.05440.66550.88721.11650.9160.86681.0256
GMI 00.99491.0190.54070.99490.99630.99550.99811.0031
AQI 0.99870.83411.16521.00550.99990.99591.00540.99740.9955
SGI 2.30941.04520.92811.83231.05451.02821.09031.08851.0289
DEPI 0.59160.89941.35770.83431.17451.0330.97090.95571.2509
SGAI 0.90370.82591.25393.08720.9930.98391.00830.96230.9916
LVGI 1.72883.1280.36320.85561.18411.11420.85661.01390.7567
TATA -0.0043-0.0281-0.0032-0.0032-0.00290.0005-0.00460.00030.001
M-score -2.54-3.60-1.31-2.63-2.59-2.38-2.46-2.53-2.32

BlackRock Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.00451.7120.54790.86680.92370.52990.9451.02560.87751.2358
GMI 0.99590.99610.9970.99810.99981.0021.00361.00311.00251.0021
AQI 10.98950.99960.99741.00421.01131.00260.99550.99590.9938
SGI 1.09061.09261.11391.08851.07051.05271.02241.02891.01510.9947
DEPI 0.97870.96990.93240.95571.09641.14431.18721.25091.13891.1243
SGAI 0.99990.95910.95830.96230.97120.98450.9820.99160.99021.0055
LVGI 0.94481.15110.97431.01390.96240.56250.66240.75670.67681.1051
TATA -0.00220.00030.00060.00030.00180.00110.00060.0010.00080.003
M-score -2.39-1.79-2.79-2.53-2.45-2.69-2.37-2.32-2.45-2.28
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