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MarketAxess Holdings (MarketAxess Holdings) Beneish M-Score : -2.29 (As of Apr. 24, 2024)


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The zones of discrimination for M-Score is as such:

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.

Good Sign:

Beneish M-Score -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for MarketAxess Holdings's Beneish M-Score or its related term are showing as below:

MKTX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.96   Med: -2.5   Max: 0.11
Current: -2.29

During the past 13 years, the highest Beneish M-Score of MarketAxess Holdings was 0.11. The lowest was -2.96. And the median was -2.50.


MarketAxess Holdings Beneish M-Score Historical Data

The historical data trend for MarketAxess Holdings's Beneish M-Score can be seen below:

* 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.

* Premium members only.

MarketAxess Holdings Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.88 0.11 -2.54 -2.46 -2.29

MarketAxess Holdings Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.46 -2.70 -2.75 -2.64 -2.29

Competitive Comparison

For the Capital Markets subindustry, MarketAxess Holdings's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


MarketAxess Holdings Beneish M-Score Distribution

For the Capital Markets industry and Financial Services sector, MarketAxess Holdings's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where MarketAxess Holdings's Beneish M-Score falls into.



MarketAxess Holdings 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 MarketAxess Holdings 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 * 1.3576+0.528 * 1.0296+0.404 * 1.0845+0.892 * 1.0477+0.115 * 0.9113
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0486+4.679 * -0.036203-0.327 * 1.1229
=-2.29

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $662.6 Mil.
Revenue was 197.248 + 172.284 + 179.846 + 203.169 = $752.5 Mil.
Gross Profit was 139.892 + 123.412 + 131.463 + 150.854 = $545.6 Mil.
Total Current Assets was $1,345.1 Mil.
Total Assets was $2,015.1 Mil.
Property, Plant and Equipment(Net PPE) was $165.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $76.4 Mil.
Selling, General, & Admin. Expense(SGA) was $143.0 Mil.
Total Current Liabilities was $582.3 Mil.
Long-Term Debt & Capital Lease Obligation was $79.7 Mil.
Net Income was 69.627 + 54.941 + 59.859 + 73.628 = $258.1 Mil.
Non Operating Income was 2.147 + -1.592 + -2.036 + -1.28 = $-2.8 Mil.
Cash Flow from Operations was 141.685 + 79.161 + 105.394 + 7.527 = $333.8 Mil.
Total Receivables was $465.9 Mil.
Revenue was 177.902 + 172.112 + 182.229 + 186.057 = $718.3 Mil.
Gross Profit was 133.794 + 127.307 + 136.794 + 138.301 = $536.2 Mil.
Total Current Assets was $1,070.5 Mil.
Total Assets was $1,607.8 Mil.
Property, Plant and Equipment(Net PPE) was $166.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $67.2 Mil.
Selling, General, & Admin. Expense(SGA) was $130.2 Mil.
Total Current Liabilities was $387.7 Mil.
Long-Term Debt & Capital Lease Obligation was $82.7 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)
=(662.624 / 752.547) / (465.862 / 718.3)
=0.880508 / 0.648562
=1.3576

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)
=(536.196 / 718.3) / (545.621 / 752.547)
=0.746479 / 0.725032
=1.0296

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 - (1345.145 + 165.716) / 2015.067) / (1 - (1070.479 + 166.362) / 1607.775)
=0.250218 / 0.230713
=1.0845

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
=752.547 / 718.3
=1.0477

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))
=(67.154 / (67.154 + 166.362)) / (76.41 / (76.41 + 165.716))
=0.287578 / 0.315579
=0.9113

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)
=(143.043 / 752.547) / (130.211 / 718.3)
=0.190078 / 0.181277
=1.0486

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)
=((79.677 + 582.303) / 2015.067) / ((82.676 + 387.704) / 1607.775)
=0.328515 / 0.292566
=1.1229

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
=(258.055 - -2.761 - 333.767) / 2015.067
=-0.036203

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.

MarketAxess Holdings has a M-score of -2.29 suggests that the company is unlikely to be a manipulator.


MarketAxess Holdings Beneish M-Score Related Terms

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MarketAxess Holdings (MarketAxess Holdings) Business Description

Traded in Other Exchanges
Address
55 Hudson Yards, 15th Floor, New York, NY, USA, 10001
Founded in 2000, MarketAxess is a leading electronic fixed-income trading platform that connects broker/dealers and institutional investors. The company is primarily focused on credit based fixed income securities with its main trading products being U.S. investment-grade and high-yield bonds, Eurobonds, and Emerging Market corporate debt. Recently the company has expanded more aggressively into Treasuries and municipal bonds with the acquisitions of LiquidityEdge and MuniBrokers in 2019 and 2021, respectively. The company also provides pre- and post-trade services with its acquisition of Regulatory Reporting Hub from Deutsche Börse Group in 2020 adding to its product offerings.
Executives
Kevin M Mcpherson officer: Global Head of Sales C/O MARKETAXESS HOLDINGS INC., 299 PARK AVENUE, NEW YORK NY 10171
Christopher R Concannon director, officer: President and COO BATS GLOBAL MARKETS, 8050 MARSHALL DRIVE, SUITE 120, LENEXA KS 66214
Scott Pintoff officer: General Counsel C/O MARKETAXESS HOLDINGS, INC., 55 HUDSON YARDS, FLOOR 15, NEW YORK NY 10001
Roupie Christophe Pierre Daniel officer: Head of Europe & Asia C/O MARKETAXESS HOLDINGS INC., 299 PARK AVENUE, NEW YORK NY 10171
Steven L Begleiter director 650 MADISON AVENUE, 19TH FLOOR, NEW YORK NY 10022
Richard Leon Prager director C/O MARKETAXESS HOLDINGS INC., 55 HUDSON YARDS, 15TH FLOOR, NEW YORK NY 10001
Nicholas Themelis officer: Chief Information Officer C/O MARKETAXESS HOLDINGS INC., 140 BROADWAY, 42ND FLOOR, NEW YORK NY 10005
Naineshkumar Shantilal Panchal officer: Chief Information Officer C/O MARKETAXESS HOLDINGS INC., 55 HUDSON YARDS, NEW YORK NY 10001
Antonio L Delise officer: Chief Financial Officer C/O MARKETAXESS HOLDINGS, INC., 299 PARK AVENUE, NEW YORK NY 10171
Richard M Mcvey director, officer: Chairman and CEO C/O MARKETAXESS HOLDINGS INC., 140 BROADWAY, 42ND FLOOR, NEW YORK NY 10005
Christopher N. Gerosa officer: Chief Financial Officer C/O PRIMUS ASSET MANAGEMENT, INC., 360 MADISON AVENUE, 23RD FLOOR, NEW YORK NY 10017
Xiaojia Charles Li director C/O MARKETAXESS HOLDINGS INC., 55 HUDSON YARDS, NEW YORK NY 10001
Stephen P Casper director C/O CHARTER ATLANTIC CORPORATION, 200 PARK AVENUE, NEW YORK NY 10166
Kourtney Gibson director C/O MARKETAXESS HOLDINGS INC., 55 HUDSON YARDS, 15TH FLOOR, NEW YORK NY 10001
Justin Gerald Gmelich director C/O MARKETAXESS HOLDINGS INC., 55 HUDSON YARDS, 15TH FLOOR, NEW YORK NY 10001