Grupo Financiero InbursaB de CV 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 Grupo Financiero InbursaB de CV 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 * 0.9775 | + | 0.892 * 1.4896 | + | 0.115 * 1.1745 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8573 | + | 4.679 * -0.031713 | - | 0.327 * 1.1283 |
| = | -2.20 |
* 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 (Mar24) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $0 Mil.
Revenue was 1061.752 + 1044.245 + 995.914 + 896.421 = $3,998 Mil.
Gross Profit was 1061.752 + 1044.245 + 995.914 + 896.421 = $3,998 Mil.
Total Current Assets was $3,089 Mil.
Total Assets was $45,500 Mil.
Property, Plant and Equipment(Net PPE) was $584 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General, & Admin. Expense(SGA) was $681 Mil.
Total Current Liabilities was $3,380 Mil.
Long-Term Debt & Capital Lease Obligation was $4,899 Mil.
Net Income was 366.61 + 433.542 + 339.947 + 413.834 = $1,554 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1305.306 + 470.09 + 712.771 + 508.686 = $2,997 Mil.
|
Total Receivables was $0 Mil.
Revenue was 918.897 + 563.948 + 561.759 + 639.642 = $2,684 Mil.
Gross Profit was 918.897 + 563.948 + 561.759 + 639.642 = $2,684 Mil.
Total Current Assets was $1,340 Mil.
Total Assets was $30,424 Mil.
Property, Plant and Equipment(Net PPE) was $472 Mil.
Depreciation, Depletion and Amortization(DDA) was $54 Mil.
Selling, General, & Admin. Expense(SGA) was $533 Mil.
Total Current Liabilities was $1,068 Mil.
Long-Term Debt & Capital Lease Obligation was $3,839 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) |
| = | (0 / 3998.332) | / | (0 / 2684.246) |
| = | 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) |
| = | (2684.246 / 2684.246) | / | (3998.332 / 3998.332) |
| = | 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 - (3088.673 + 583.539) / 45499.954) | / | (1 - (1339.813 + 472.199) / 30424.497) |
| = | 0.919292 | / | 0.940442 |
| | = | 0.9775 |
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 |
| = | 3998.332 | / | 2684.246 |
| | = | 1.4896 |
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)) |
| = | (54.124 / (54.124 + 472.199)) | / | (55.994 / (55.994 + 583.539)) |
| = | 0.102834 | / | 0.087555 |
| | = | 1.1745 |
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) |
| = | (680.766 / 3998.332) | / | (533.099 / 2684.246) |
| = | 0.170262 | / | 0.198603 |
| | = | 0.8573 |
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) |
| = | ((4899.265 + 3379.779) / 45499.954) | / | ((3838.993 + 1067.604) / 30424.497) |
| = | 0.181957 | / | 0.161271 |
| | = | 1.1283 |
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 |
| = | (1553.933 - 0 | - | 2996.853) | / | 45499.954 |
| | = | -0.031713 |
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.
Grupo Financiero InbursaB de CV has a M-score of -2.20 suggests that the company is unlikely to be a manipulator.
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