Banco Macro (Banco Macro) Beneish M-Score

: 3.61 (As of Today)

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Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score 3.61 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Banco Macro's Beneish M-Score or its related term are showing as below:

BMA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.94 Med: -2.45 Max: 334.26
Current: 3.61

During the past 13 years, the highest Beneish M-Score of Banco Macro was 334.26. The lowest was -3.94. And the median was -2.45.

Banco Macro Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Banco Macro for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 8.5522

0.528 * 1

0.404 * 1.0196

0.892 * 0.2708

0.115 * 3.8746

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.305

4.679 * 0.146155

0.327 * 1.6667

4.74

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was $498 Mil.
Revenue was 1003.119 + 1094.097 + 840.716 + -1451.091 = $1,487 Mil.
Gross Profit was 1003.119 + 1094.097 + 840.716 + -1451.091 = $1,487 Mil.
Total Current Assets was $1,777 Mil.
Total Assets was $10,597 Mil.
Property, Plant and Equipment(Net PPE) was $595 Mil.
Depreciation, Depletion and Amortization(DDA) was $45 Mil.
Selling, General, & Admin. Expense(SGA) was $104 Mil.
Total Current Liabilities was $814 Mil.
Long-Term Debt & Capital Lease Obligation was $439 Mil.
Net Income was 21.388 + 183.877 + 49.422 + -77.152 = $178 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -309.722 + -26.626 + 921.65 + -1956.509 = $-1,371 Mil.

Total Receivables was $215 Mil.
Revenue was 2044.701 + 1419.82 + 1189.757 + 836.281 = $5,491 Mil.
Gross Profit was 2044.701 + 1419.82 + 1189.757 + 836.281 = $5,491 Mil.
Total Current Assets was $2,410 Mil.
Total Assets was $12,703 Mil.
Property, Plant and Equipment(Net PPE) was $623 Mil.
Depreciation, Depletion and Amortization(DDA) was $233 Mil.
Selling, General, & Admin. Expense(SGA) was $1,261 Mil.
Total Current Liabilities was $433 Mil.
Long-Term Debt & Capital Lease Obligation was $468 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(497.668 / 1486.841)	/	(214.892 / 5490.559)
	=	0.334715	/	0.039138
	=	8.5522

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)
	=	(5490.559 / 5490.559)	/	(1486.841 / 1486.841)
	=	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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (1776.503 + 595.066) / 10596.583)	/	(1 - (2410.145 + 622.807) / 12703.29)
	=	0.776195	/	0.761247
	=	1.0196

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	1486.841	/	5490.559
	=	0.2708

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(233.121 / (233.121 + 622.807))	/	(44.992 / (44.992 + 595.066))
	=	0.272361	/	0.070294
	=	3.8746

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(104.166 / 1486.841)	/	(1261.01 / 5490.559)
	=	0.070059	/	0.229669
	=	0.305

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((439.381 + 813.743) / 10596.583)	/	((468.286 + 433.051) / 12703.29)
	=	0.118257	/	0.070953
	=	1.6667

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
	=	(177.535 - 0	-	-1371.207)	/	10596.583
	=	0.146155

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Banco Macro has a M-score of 4.74 signals that the company is likely to be a manipulator.

Banco Macro Beneish M-Score Related Terms

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Banco Macro (Banco Macro) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Banco Macro SA (NYSE:BMA) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

B4W:Germany B4W:Germany BMA:Argentina

Address

Avenida Eduardo Madero 1182, City of Buenos Aires, ARG, 1172

Website

https://www.macro.com.ar

Banco Macro SA is a financial institution and it provides standard banking products and services designed to suit individual needs. It has two categories of customers, retail customers, which include individuals and entrepreneurs, and corporate customers, which include small, medium, and large companies and corporations. In addition, it provides services to four provincial governments. It generates the majority of its revenue from Argentina.