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Comerica Inc (NYSE:CMA)
Beneish M-Score
-2.78 (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.

Comerica Inc has a M-score of -2.78 suggests that the company is not a manipulator.

CMA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85   Max: -2.08
Current: -2.78

-2.85
-2.08

During the past 13 years, the highest Beneish M-Score of Comerica Inc was -2.08. The lowest was -2.85. And the median was -2.46.


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 Comerica 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+0.528 * 1+0.404 * 1.0001+0.892 * 1.07+0.115 * 1.0396
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0293+4.679 * -0.0041-0.327 * 2.0451
=-2.78

* 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 $0 Mil.
Revenue was 714 + 693 + 703 + 686 = $2,796 Mil.
Gross Profit was 714 + 693 + 703 + 686 = $2,796 Mil.
Total Current Assets was $0 Mil.
Total Assets was $71,280 Mil.
Property, Plant and Equipment(Net PPE) was $544 Mil.
Depreciation, Depletion and Amortization(DDA) was $117 Mil.
Selling, General & Admin. Expense(SGA) was $1,510 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $5,921 Mil.
Net Income was 104 + 60 + 116 + 136 = $416 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -6 + 245 + 199 + 269 = $707 Mil.
Accounts Receivable was $0 Mil.
Revenue was 679 + 665 + 640 + 629 = $2,613 Mil.
Gross Profit was 679 + 665 + 640 + 629 = $2,613 Mil.
Total Current Assets was $0 Mil.
Total Assets was $69,945 Mil.
Property, Plant and Equipment(Net PPE) was $541 Mil.
Depreciation, Depletion and Amortization(DDA) was $122 Mil.
Selling, General & Admin. Expense(SGA) was $1,371 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $2,841 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)
=(0 / 2796) / (0 / 2613)
=0 / 0
=1

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)
=(2613 / 2613) / (2796 / 2796)
=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 + 544) / 71280) / (1 - (0 + 541) / 69945)
=0.99236813 / 0.99226535
=1.0001

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
=2796 / 2613
=1.07

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))
=(122 / (122 + 541)) / (117 / (117 + 544))
=0.18401207 / 0.17700454
=1.0396

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)
=(1510 / 2796) / (1371 / 2613)
=0.54005722 / 0.52468427
=1.0293

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)
=((5921 + 0) / 71280) / ((2841 + 0) / 69945)
=0.08306678 / 0.04061763
=2.0451

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
=(416 - 0 - 707) / 71280
=-0.0041

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.

Comerica Inc has a M-score of -2.78 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.

Comerica Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1111111111
GMI 1111111111
AQI 0.99980.99941.00030.99920.99911.00071.00151.00051.00141
SGI 1.02271.01870.93670.96640.93051.00411.06260.98310.98791.0856
DEPI 1.07480.98030.89970.89810.96851.07440.8691.03390.90741.0631
SGAI 1.02141.13181.22570.96571.0730.99830.9850.9930.99721.1035
LVGI 1.37271.37981.57470.83770.61270.70860.89510.74890.71181.1004
TATA -0.0014-0.0053-0.0096-0.0012-0.0188-0.0066-0.0026-0.0045-0.0007-0.0047
M-score -2.58-2.64-2.82-2.47-2.52-2.40-2.41-2.43-2.41-2.47

Comerica Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1111111111
GMI 1111111111
AQI 1.00071.0011.00171.00141.00121.0009110.99981.0001
SGI 0.9860.98990.97950.98791.01061.02751.05451.08321.07431.07
DEPI 1.01120.9870.90790.90740.90790.96281.03321.06311.05731.0396
SGAI 0.98910.98370.99330.99721.02321.05891.07181.10151.0691.0293
LVGI 0.7430.70110.70280.71180.721.01271.12671.10041.1632.0451
TATA -0.0037-0.0057-0.0062-0.0007-0.0025-0.0016-0.0026-0.0047-0.0047-0.0041
M-score -2.42-2.42-2.44-2.41-2.40-2.48-2.49-2.47-2.49-2.78
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