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Invesco Ltd (NYSE:IVZ)
Beneish M-Score
-2.43 (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.

Invesco Ltd has a M-score of -2.43 suggests that the company is not a manipulator.

IVZ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.38   Max: -1.76
Current: -2.43

-3.38
-1.76

During the past 13 years, the highest Beneish M-Score of Invesco Ltd was -1.76. The lowest was -3.38. And the median was -2.43.


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 Invesco 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 * 1.0089+0.528 * 1+0.404 * 1.0214+0.892 * 1.0126+0.115 * 1.0983
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9578+4.679 * 0.0121-0.327 * 1.1749
=-2.43

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $665 Mil.
Revenue was 1273.5 + 1318.1 + 1291.6 + 1276.7 = $5,160 Mil.
Gross Profit was 1273.5 + 1318.1 + 1291.6 + 1276.7 = $5,160 Mil.
Total Current Assets was $4,888 Mil.
Total Assets was $24,962 Mil.
Property, Plant and Equipment(Net PPE) was $416 Mil.
Depreciation, Depletion and Amortization(DDA) was $91 Mil.
Selling, General & Admin. Expense(SGA) was $3,757 Mil.
Total Current Liabilities was $7,917 Mil.
Long-Term Debt was $7,359 Mil.
Net Income was 249.3 + 257.3 + 259.6 + 269.8 = $1,036 Mil.
Non Operating Income was -11.8 + -11.4 + 48.3 + -29 = $-4 Mil.
Cash Flow from Operations was 97.1 + 514.8 + -56.3 + 183 = $739 Mil.
Accounts Receivable was $651 Mil.
Revenue was 1311 + 1289.9 + 1269.5 + 1225.1 = $5,096 Mil.
Gross Profit was 1311 + 1289.9 + 1269.5 + 1225.1 = $5,096 Mil.
Total Current Assets was $4,231 Mil.
Total Assets was $20,081 Mil.
Property, Plant and Equipment(Net PPE) was $367 Mil.
Depreciation, Depletion and Amortization(DDA) was $90 Mil.
Selling, General & Admin. Expense(SGA) was $3,874 Mil.
Total Current Liabilities was $4,160 Mil.
Long-Term Debt was $6,299 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)
=(664.8 / 5159.9) / (650.7 / 5095.5)
=0.12883971 / 0.12770091
=1.0089

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)
=(1318.1 / 5095.5) / (1273.5 / 5159.9)
=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 - (4887.9 + 415.9) / 24962.2) / (1 - (4231.1 + 367.3) / 20081)
=0.78752674 / 0.77100742
=1.0214

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
=5159.9 / 5095.5
=1.0126

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))
=(89.8 / (89.8 + 367.3)) / (90.6 / (90.6 + 415.9))
=0.19645592 / 0.17887463
=1.0983

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)
=(3756.9 / 5159.9) / (3873.5 / 5095.5)
=0.72809551 / 0.76018055
=0.9578

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)
=((7359 + 7916.6) / 24962.2) / ((6299.4 + 4159.7) / 20081)
=0.61194927 / 0.52084558
=1.1749

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
=(1036 - -3.9 - 738.6) / 24962.2
=0.0121

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.

Invesco Ltd has a M-score of -2.43 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.

Invesco Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.48120.86340.62111.5221.51940.76381.03080.91391.14140.9968
GMI 1111111111
AQI 1.10240.97221.1120.9431.12091.01041.03230.82320.99470.4586
SGI 1.13021.19470.85270.79431.32751.17330.98981.14671.10820.9953
DEPI 1.35770.96561.06010.95220.99290.961.27721.06161.10771.0105
SGAI 0.93880.98561.13621.05391.01860.93941.01470.95810.99090.9773
LVGI 0.71181.07090.79890.91811.83110.96680.9291.12731.0271.1951
TATA -0.0056-0.02090.00070.0029-0.0041-0.0091-0.00470.003-0.0155-0.0037
M-score -2.68-2.57-2.86-2.18-1.96-2.56-2.42-2.51-2.32-2.78

Invesco Ltd Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.0440.91971.06830.92961.06051.14140.83640.951.00890.9968
GMI 1111111111
AQI 0.91050.82321.01941.06481.13120.99470.86531.03861.02140.4586
SGI 1.10921.13951.15581.15041.14091.10821.07651.04861.01260.9953
DEPI 1.06991.06161.04321.04631.06021.10771.12561.12891.09831.0105
SGAI 0.97520.95760.97970.980.98870.99090.95250.96360.95780.9773
LVGI 1.07921.12731.04261.05341.07881.0271.12441.11761.17491.1951
TATA -0.0160.003-0.0142-0.0154-0.0188-0.0155-0.0185-0.0040.0121-0.0037
M-score -2.47-2.51-2.34-2.47-2.35-2.32-2.72-2.50-2.43-2.78
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