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Bank of Montreal (NYSE:BMO)
Beneish M-Score
0.00 (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.

Bank of Montreal has a M-score of signals that the company is a manipulator.

BMO' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Bank of Montreal was 0.00. The lowest was 0.00. And the median was 0.00.


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 Bank of Montreal 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $593 Mil.
Revenue was 3870.85265787 + 3924.94645684 + 3676.97907188 + 3767.82449726 = $15,241 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Total Current Assets was $0 Mil.
Total Assets was $525,026 Mil.
Property, Plant and Equipment(Net PPE) was $2,030 Mil.
Depreciation, Depletion and Amortization(DDA) was $517 Mil.
Selling, General & Admin. Expense(SGA) was $4,833 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $4,382 Mil.
Net Income was 942.739921513 + 1033.6157929 + 966.333030027 + 957.952468007 = $3,901 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -11215.6617909 + 351.056895428 + 1.81983621474 + 0 = $-10,863 Mil.
Accounts Receivable was $1,028 Mil.
Revenue was 3994.20849421 + 3846.15384615 + 3820.41216879 + 4064.51612903 = $15,725 Mil.
Gross Profit was 0 + 0 + 0 + 0 = $0 Mil.
Total Current Assets was $0 Mil.
Total Assets was $518,382 Mil.
Property, Plant and Equipment(Net PPE) was $2,093 Mil.
Depreciation, Depletion and Amortization(DDA) was $679 Mil.
Selling, General & Admin. Expense(SGA) was $6,509 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $3,857 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)
=(593.114520157 / 15240.6026838) / (1027.99227799 / 15725.2906382)
=0.03891674 / 0.06537191
=

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)
=(0 / 15725.2906382) / (0 / 15240.6026838)
=0 / 0
=

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 + 2029.96789154) / 525025.865144) / (1 - (0 + 2092.66409266) / 518382.239382)
=0.99613358 / 0.99596309
=

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
=15240.6026838 / 15725.2906382
=

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))
=(679.273875314 / (679.273875314 + 2092.66409266)) / (517.382305897 / (517.382305897 + 2029.96789154))
=0.24505378 / 0.20310608
=

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)
=(4832.87175605 / 15240.6026838) / (6508.51195856 / 15725.2906382)
=0.31710503 / 0.41388818
=

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)
=((4381.91223689 + 0) / 525025.865144) / ((3857.14285714 + 0) / 518382.239382)
=0.00834609 / 0.00744073
=

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
=(3900.64121245 - 0 - -10862.7850593) / 525025.865144
=0.0281

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.

Bank of Montreal has a M-score of signals that the company is likely to 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.

Bank of Montreal Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score

Bank of Montreal Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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