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Popular Inc (NAS:BPOP)
Beneish M-Score
-2.33 (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.

Popular Inc has a M-score of -2.33 suggests that the company is not a manipulator.

BPOP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.6   Max: 3.76
Current: -2.33

-3.6
3.76

During the past 13 years, the highest Beneish M-Score of Popular Inc was 3.76. The lowest was -3.60. And the median was -2.50.


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 Popular 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 * 0.6443+0.528 * 1+0.404 * 0.9992+0.892 * 1.4404+0.115 * 1.0128
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7404+4.679 * 0.0013-0.327 * 0.8881
=-2.33

* 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 $120 Mil.
Revenue was 464.042 + 484.938 + 481.844 + 503.312 = $1,934 Mil.
Gross Profit was 464.042 + 484.938 + 481.844 + 503.312 = $1,934 Mil.
Total Current Assets was $0 Mil.
Total Assets was $36,147 Mil.
Property, Plant and Equipment(Net PPE) was $527 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $671 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $1,583 Mil.
Net Income was 84.999 + 137.426 + 85.64 + 597.452 = $906 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 178.161 + 249.387 + 228.357 + 202.219 = $858 Mil.
Accounts Receivable was $130 Mil.
Revenue was 458.43 + 430.225 + 450.751 + 3.408 = $1,343 Mil.
Gross Profit was 458.43 + 430.225 + 450.751 + 3.408 = $1,343 Mil.
Total Current Assets was $0 Mil.
Total Assets was $35,625 Mil.
Property, Plant and Equipment(Net PPE) was $492 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General & Admin. Expense(SGA) was $629 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $1,757 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)
=(120.308 / 1934.136) / (129.639 / 1342.814)
=0.06220245 / 0.09654278
=0.6443

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)
=(1342.814 / 1342.814) / (1934.136 / 1934.136)
=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 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 + 527.493) / 36147.009) / (1 - (0 + 492.291) / 35624.84)
=0.98540701 / 0.98618124
=0.9992

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
=1934.136 / 1342.814
=1.4404

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))
=(56.125 / (56.125 + 492.291)) / (59.291 / (59.291 + 527.493))
=0.10234019 / 0.101044
=1.0128

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)
=(670.514 / 1934.136) / (628.706 / 1342.814)
=0.34667366 / 0.46820036
=0.7404

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)
=((1583.468 + 0) / 36147.009) / ((1757.313 + 0) / 35624.84)
=0.04380634 / 0.04932831
=0.8881

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
=(905.517 - 0 - 858.124) / 36147.009
=0.0013

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.

Popular Inc has a M-score of -2.33 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.

Popular Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 110.73470.8520.92421.07751.05560.88391.56010.7042
GMI 1111111111
AQI 0.99970.99930.99720.99911.00280.99960.99971.00010.99961.0009
SGI 1.01260.95810.98390.94721.2930.77130.95131.18360.59361.4483
DEPI 0.84091.1562.5621.06861.0121.17540.98420.95390.97910.9846
SGAI 1.09061.0240.9561.01170.7411.20561.15260.81731.50330.761
LVGI 0.90580.56460.83710.87541.4090.46260.97970.91041.16680.9028
TATA -0.0103-0.0173-0.0643-0.0346-0.0007-0.0141-0.0076-0.0062-0.03580.0063
M-score -2.52-2.44-2.80-2.78-2.38-2.52-2.53-2.40-2.64-2.25

Popular Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.85980.70670.9640.88031.5031.70840.95131.24480.70420.6443
GMI 1111111111
AQI 1.00011.00041.00090.99980.99961.00020.99991.00071.00090.9992
SGI 1.21671.31440.86160.71760.61620.60271.14591.30021.44831.4404
DEPI 0.95390.95870.96160.99720.97910.98791.01290.97430.98461.0128
SGAI 0.88690.84881.11911.31671.44561.48530.87390.79640.72240.7404
LVGI 0.91040.86421.31771.17971.16681.20320.7610.93240.90280.8881
TATA -0.00620.0017-0.0205-0.0352-0.0358-0.02890.00090.00930.00630.0013
M-score -2.40-2.40-2.86-3.12-2.66-2.47-2.29-1.89-2.24-2.33
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