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Comerica Inc (NYSE:CMA)
Beneish M-Score
-2.49 (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 -2.49 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: -2.49

-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 * 0.9998+0.892 * 1.0755+0.115 * 1.0573
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.07+4.679 * -0.0047-0.327 * 1.163
=-2.49

* 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 $0 Mil.
Revenue was 693 + 703 + 686 + 682 = $2,764 Mil.
Gross Profit was 693 + 703 + 686 + 682 = $2,764 Mil.
Total Current Assets was $0 Mil.
Total Assets was $69,007 Mil.
Property, Plant and Equipment(Net PPE) was $541 Mil.
Depreciation, Depletion and Amortization(DDA) was $118 Mil.
Selling, General & Admin. Expense(SGA) was $1,504 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $3,109 Mil.
Net Income was 60 + 116 + 136 + 135 = $447 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 245 + 199 + 269 + 56 = $769 Mil.
Accounts Receivable was $0 Mil.
Revenue was 665 + 640 + 629 + 636 = $2,570 Mil.
Gross Profit was 665 + 640 + 629 + 636 = $2,570 Mil.
Total Current Assets was $0 Mil.
Total Assets was $69,336 Mil.
Property, Plant and Equipment(Net PPE) was $531 Mil.
Depreciation, Depletion and Amortization(DDA) was $124 Mil.
Selling, General & Admin. Expense(SGA) was $1,307 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $2,686 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 / 2764) / (0 / 2570)
=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)
=(703 / 2570) / (693 / 2764)
=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 + 541) / 69007) / (1 - (0 + 531) / 69336)
=0.99216022 / 0.99234164
=0.9998

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
=2764 / 2570
=1.0755

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))
=(124 / (124 + 531)) / (118 / (118 + 541))
=0.18931298 / 0.17905918
=1.0573

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)
=(1504 / 2764) / (1307 / 2570)
=0.54413893 / 0.50856031
=1.07

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)
=((3109 + 0) / 69007) / ((2686 + 0) / 69336)
=0.0450534 / 0.03873889
=1.163

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
=(447 - 0 - 769) / 69007
=-0.0047

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 -2.49 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 0.97931.01760.93770.96640.93051.00411.04130.98111.011.0856
DEPI 1.57041.00790.87510.89810.96851.07440.8691.03390.90741.0631
SGAI 1.02421.0121.20021.08091.0951.03840.94921.05430.941.0999
LVGI 1.37271.37981.57470.83770.61270.70860.89510.74890.71181.1004
TATA -0.0014-0.0053-0.0096-0.0012-0.0188-0.0083-0.0036-0.0045-0.0007-0.0047
M-score -2.57-2.61-2.82-2.49-2.52-2.42-2.43-2.44-2.38-2.47

Comerica Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1111111111
GMI 1111111111
AQI 1.00051.00071.0011.00171.00141.00121.0009110.9998
SGI 0.98310.9860.98990.97950.98791.01061.02871.05571.08441.0755
DEPI 1.03391.01120.9870.90790.90740.90790.96281.03321.06311.0573
SGAI 0.9930.98910.98370.99330.99721.02321.061.07291.10251.07
LVGI 0.74890.7430.70110.70280.71180.721.01271.12671.10041.163
TATA -0.0045-0.0037-0.0057-0.0062-0.0007-0.0025-0.0016-0.0026-0.0047-0.0047
M-score -2.43-2.42-2.42-2.44-2.41-2.40-2.48-2.49-2.47-2.49
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