Switch to:
Invesco Ltd (NYSE:IVZ)
Beneish M-Score
-2.47 (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 -2.47 suggests that the company is not a manipulator.

IVZ' s 10-Year Beneish M-Score Range
Min: -3.3   Max: -1.78
Current: -2.47

-3.3
-1.78

During the past 13 years, the highest Beneish M-Score of Invesco Ltd was -1.78. The lowest was -3.30. And the median was -2.44.


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 * 0.9519+0.528 * 1+0.404 * 1.0648+0.892 * 1.1235+0.115 * 1.0463
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9817+4.679 * -0.0154-0.327 * 1.0534
=-2.47

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $640 Mil.
Revenue was 1289.9 + 1269.5 + 1225.1 + 1171.8 = $4,956 Mil.
Gross Profit was 1289.9 + 1269.5 + 1225.1 + 1171.8 = $4,956 Mil.
Total Current Assets was $4,603 Mil.
Total Assets was $19,900 Mil.
Property, Plant and Equipment(Net PPE) was $355 Mil.
Depreciation, Depletion and Amortization(DDA) was $90 Mil.
Selling, General & Admin. Expense(SGA) was $3,778 Mil.
Total Current Liabilities was $8,481 Mil.
Long-Term Debt was $1,589 Mil.
Net Income was 274.5 + 187.8 + 287.4 + 228.1 = $978 Mil.
Non Operating Income was 66.2 + 51.3 + 41.3 + 51.2 = $210 Mil.
Cash Flow from Operations was 769.5 + -219.2 + 190.3 + 334.3 = $1,075 Mil.
Accounts Receivable was $598 Mil.
Revenue was 1135.5 + 1141.8 + 1092.9 + 1041.4 = $4,412 Mil.
Gross Profit was 1135.5 + 1141.8 + 1092.9 + 1041.4 = $4,412 Mil.
Total Current Assets was $5,019 Mil.
Total Assets was $18,139 Mil.
Property, Plant and Equipment(Net PPE) was $329 Mil.
Depreciation, Depletion and Amortization(DDA) was $88 Mil.
Selling, General & Admin. Expense(SGA) was $3,426 Mil.
Total Current Liabilities was $3,430 Mil.
Long-Term Debt was $5,284 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)
=(639.5 / 4956.3) / (598 / 4411.6)
=0.1290277 / 0.13555173
=0.9519

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)
=(1269.5 / 4411.6) / (1289.9 / 4956.3)
=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 - (4602.6 + 354.8) / 19899.5) / (1 - (5018.7 + 328.8) / 18138.6)
=0.75087816 / 0.70518673
=1.0648

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
=4956.3 / 4411.6
=1.1235

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))
=(88.3 / (88.3 + 328.8)) / (90 / (90 + 354.8))
=0.21169983 / 0.20233813
=1.0463

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)
=(3777.9 / 4956.3) / (3425.5 / 4411.6)
=0.762242 / 0.77647566
=0.9817

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)
=((1588.9 + 8480.8) / 19899.5) / ((5283.9 + 3429.7) / 18138.6)
=0.50602779 / 0.48038989
=1.0534

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
=(977.8 - 210 - 1074.9) / 19899.5
=-0.0154

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 -2.47 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 2.79490.48120.86340.62111.5221.51940.76380.99960.9425
GMI 111111111
AQI 0.94561.10240.97221.11120.94361.12091.01040.9630.9915
SGI 1.35221.13021.19470.85270.79431.32751.17331.02071.1119
DEPI 1.01821.35770.96561.39520.72350.99290.961.27721.0616
SGAI 0.76770.93880.98561.13621.05391.01860.93941.01390.9589
LVGI 1.02050.71181.07090.79890.91811.83110.96680.90251.1067
TATA 0.0076-0.0056-0.02090.00380.0029-0.0041-0.0091-0.00470.003
M-score -0.47-2.68-2.57-2.81-2.21-1.96-2.56-2.44-2.44

Invesco Ltd Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.75380.87090.9010.99960.99071.06671.04060.93651.10180.9519
GMI 1111111111
AQI 1.00451.0160.95450.9630.92410.89750.91050.99151.01941.0648
SGI 1.07970.98990.98971.02071.04551.09261.11291.1191.12061.1235
DEPI 1.04041.14981.41181.27721.2361.20971.06991.06161.04321.0463
SGAI 0.94970.98741.00491.01391.00840.99040.97250.95910.98090.9817
LVGI 0.94010.89710.86970.90250.99091.01581.07921.10671.04261.0534
TATA -0.0043-0.021-0.0036-0.00470.0094-0.0023-0.0160.003-0.0142-0.0154
M-score -2.62-2.65-2.53-2.44-2.41-2.37-2.47-2.44-2.34-2.47
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK