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HDFC Bank Ltd (NYSE:HDB)
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.

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

During the past 13 years, the highest Beneish M-Score of HDFC Bank Ltd 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 HDFC Bank Ltd 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 (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $0 Mil.
Revenue was 1494.79040575 + 1679.01829772 + 1100.98477757 + 1405.98586759 = $5,681 Mil.
Gross Profit was 1494.79040575 + 1679.01829772 + 1100.98477757 + 1405.98586759 = $5,681 Mil.
Total Current Assets was $0 Mil.
Total Assets was $103,439 Mil.
Property, Plant and Equipment(Net PPE) was $487 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $2,623 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $9,028 Mil.
Net Income was 504.770511697 + 455.027982354 + 350.111083412 + 402.487175999 = $1,712 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = $0 Mil.
Accounts Receivable was $0 Mil.
Revenue was 1313.22290458 + 1241.11459236 + 1481.6151545 + 1130.87221894 = $5,167 Mil.
Gross Profit was 1313.22290458 + 1241.11459236 + 1481.6151545 + 1130.87221894 = $5,167 Mil.
Total Current Assets was $0 Mil.
Total Assets was $85,294 Mil.
Property, Plant and Equipment(Net PPE) was $468 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $1,248 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $6,324 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 / 5680.77934863) / (0 / 5166.82487039)
=0 / 0
=

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)
=(1679.01829772 / 5166.82487039) / (1494.79040575 / 5680.77934863)
=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 + 487.119994346) / 103438.811891) / (1 - (0 + 468.096914066) / 85294.1995404)
=0.99529074 / 0.99451197
=

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
=5680.77934863 / 5166.82487039
=

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))
=(0 / (0 + 468.096914066)) / (0 / (0 + 487.119994346))
=0 / 0
=

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)
=(2622.88500707 / 5680.77934863) / (1247.64592706 / 5166.82487039)
=0.46171218 / 0.24147246
=

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)
=((9027.52235637 + 0) / 103438.811891) / ((6324.40664614 + 0) / 85294.1995404)
=0.08727403 / 0.07414814
=

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
=(1712.39675346 - 0 - 0) / 103438.811891
=0.0166

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.

HDFC Bank Ltd 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.

HDFC Bank Ltd Annual Data

Mar07Mar08Mar09Mar10Mar11Mar12Mar13Mar14Mar15Mar16
DSRI 1.24790.50130.45781.61521.14460.32883.69590.99150.9433
GMI 111111111
AQI 1.00081.0010.9991.0011.00141.00091.00041.00051.0008
SGI 1.47511.55791.11261.30821.26851.02841.14911.05831.1702
DEPI 0.92792.57660.66280.96791.03941.04531.0171.10871.2134
SGAI 1.44771.1711.74960.89561.00381.0420.9820.89721.0086
LVGI 1.54060.65361.54340.93831.01772.04261.03511.14160.9489
TATA -0.02250.0416-0.055-0.035-0.00310.0034-0.0022-0.0093-0.0016
M-score -2.20-1.98-3.48-1.77-2.12-3.400.12-2.50-2.35

HDFC Bank Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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