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Invesco Ltd (NYSE:IVZ)
Beneish M-Score
-2.40 (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 -2.40 suggests that the company is not a manipulator.

IVZ' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48   Max: -0.54
Current: -2.4

-3.48
-0.54

During the past 13 years, the highest Beneish M-Score of Invesco Ltd was -0.54. The lowest was -3.48. 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 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 * 1.0546+0.528 * 1+0.404 * 1.2521+0.892 * 0.9634+0.115 * 1.0101
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0071+4.679 * -0.0047-0.327 * 1.062
=-2.40

* 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 $654 Mil.
Revenue was 1148.7 + 1239.7 + 1273.5 + 1318.1 = $4,980 Mil.
Gross Profit was 1148.7 + 1239.7 + 1273.5 + 1318.1 = $4,980 Mil.
Total Current Assets was $4,280 Mil.
Total Assets was $22,658 Mil.
Property, Plant and Equipment(Net PPE) was $429 Mil.
Depreciation, Depletion and Amortization(DDA) was $96 Mil.
Selling, General & Admin. Expense(SGA) was $3,685 Mil.
Total Current Liabilities was $8,598 Mil.
Long-Term Debt was $5,134 Mil.
Net Income was 161 + 201.9 + 249.3 + 257.3 = $870 Mil.
Non Operating Income was -24.4 + -16.8 + -11.8 + -11.4 = $-64 Mil.
Cash Flow from Operations was -68.8 + 497.9 + 97.1 + 514.8 = $1,041 Mil.
Accounts Receivable was $643 Mil.
Revenue was 1291.6 + 1276.7 + 1311 + 1289.9 = $5,169 Mil.
Gross Profit was 1291.6 + 1276.7 + 1311 + 1289.9 = $5,169 Mil.
Total Current Assets was $7,674 Mil.
Total Assets was $21,961 Mil.
Property, Plant and Equipment(Net PPE) was $393 Mil.
Depreciation, Depletion and Amortization(DDA) was $89 Mil.
Selling, General & Admin. Expense(SGA) was $3,799 Mil.
Total Current Liabilities was $5,453 Mil.
Long-Term Debt was $7,080 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)
=(653.5 / 4980) / (643.2 / 5169.2)
=0.1312249 / 0.12442931
=1.0546

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)
=(1239.7 / 5169.2) / (1148.7 / 4980)
=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 - (4280 + 428.9) / 22658.2) / (1 - (7674 + 393.1) / 21961.2)
=0.79217678 / 0.63266579
=1.2521

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
=4980 / 5169.2
=0.9634

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))
=(88.7 / (88.7 + 393.1)) / (95.6 / (95.6 + 428.9))
=0.18410129 / 0.18226883
=1.0101

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)
=(3685.3 / 4980) / (3798.5 / 5169.2)
=0.74002008 / 0.73483324
=1.0071

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)
=((5134.4 + 8598.1) / 22658.2) / ((7080.3 + 5452.8) / 21961.2)
=0.60607197 / 0.57069286
=1.062

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
=(869.5 - -64.4 - 1041) / 22658.2
=-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.

Invesco Ltd has a M-score of -2.40 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 0.48950.64210.62111.5221.51940.76380.99960.94251.14140.9968
GMI 1111111111
AQI 1.10240.97221.1120.9431.12091.01041.03230.82321.14791.0421
SGI 1.11111.60640.85270.79431.32751.17331.02071.11191.10820.9953
DEPI 0.66061.98391.39520.72350.99290.961.27721.06161.10771.0105
SGAI 0.87651.00951.13621.05391.01860.93941.01390.95890.99090.9773
LVGI 0.71181.07090.79890.91811.83110.96680.9291.12730.99991.2064
TATA -0.0033-0.03960.00380.0029-0.0041-0.0091-0.00470.003-0.0155-0.0037
M-score -2.75-2.38-2.81-2.21-1.96-2.56-2.42-2.52-2.25-2.55

Invesco Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.91971.06830.92961.06051.14140.83640.951.00890.99681.0546
GMI 1111111111
AQI 0.82321.01941.06481.13121.14790.86531.03861.02141.04211.2521
SGI 1.13951.15581.15041.14091.10821.07651.04861.01260.99530.9634
DEPI 1.06161.04321.04631.06021.10771.12561.12891.09831.01051.0101
SGAI 0.95760.97970.980.98870.99090.95250.96360.95780.97731.0071
LVGI 1.12731.04261.05341.07880.99991.12441.11761.17491.20641.062
TATA 0.003-0.0142-0.0154-0.0188-0.0155-0.0192-0.00460.0115-0.0043-0.0047
M-score -2.51-2.34-2.47-2.35-2.25-2.72-2.51-2.44-2.55-2.40
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