MSCI Beneish M-Score Historical Data
The historical data trend for MSCI'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.
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MSCI Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.57 |
-2.56 |
-2.35 |
-2.71 |
-2.36 |
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MSCI Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.71 |
-2.65 |
-2.71 |
-2.54 |
-2.36 |
Competitive Comparison
For the Financial Data & Stock Exchanges subindustry, MSCI'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.
MSCI Beneish M-Score Distribution
For the Capital Markets industry and Financial Services sector, MSCI's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where MSCI's Beneish M-Score falls into.
MSCI 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 MSCI 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 * 1.1255 | + | 0.528 * 0.9961 | + | 0.404 * 1.1593 | + | 0.892 * 1.1247 | + | 0.115 * 0.9156 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9296 | + | 4.679 * -0.040609 | - | 0.327 * 0.9439 |
| = | -2.36 |
* 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 $840 Mil.
Revenue was 690.106 + 625.439 + 621.157 + 592.218 = $2,529 Mil.
Gross Profit was 567.549 + 520.128 + 511.091 + 483.571 = $2,082 Mil.
Total Current Assets was $1,418 Mil.
Total Assets was $5,518 Mil.
Property, Plant and Equipment(Net PPE) was $171 Mil.
Depreciation, Depletion and Amortization(DDA) was $159 Mil.
Selling, General, & Admin. Expense(SGA) was $430 Mil.
Total Current Liabilities was $1,517 Mil.
Long-Term Debt & Capital Lease Obligation was $4,617 Mil.
Net Income was 403.38 + 259.659 + 246.825 + 238.728 = $1,149 Mil.
Non Operating Income was 140.684 + 0.935 + -2.581 + -2.386 = $137 Mil.
Cash Flow from Operations was 388.953 + 291.131 + 291.804 + 264.141 = $1,236 Mil.
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Total Receivables was $663 Mil.
Revenue was 576.208 + 560.639 + 551.806 + 559.945 = $2,249 Mil.
Gross Profit was 473.824 + 462.221 + 451.038 + 457.174 = $1,844 Mil.
Total Current Assets was $1,748 Mil.
Total Assets was $4,998 Mil.
Property, Plant and Equipment(Net PPE) was $180 Mil.
Depreciation, Depletion and Amortization(DDA) was $142 Mil.
Selling, General, & Admin. Expense(SGA) was $411 Mil.
Total Current Liabilities was $1,251 Mil.
Long-Term Debt & Capital Lease Obligation was $4,635 Mil.
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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) |
| = | (839.555 / 2528.92) | / | (663.236 / 2248.598) |
| = | 0.331982 | / | 0.294955 |
| | = | 1.1255 |
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) |
| = | (1844.257 / 2248.598) | / | (2082.339 / 2528.92) |
| = | 0.820181 | / | 0.82341 |
| | = | 0.9961 |
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 - (1418.153 + 171.163) / 5518.219) | / | (1 - (1747.974 + 180.437) / 4997.535) |
| = | 0.711988 | / | 0.614128 |
| | = | 1.1593 |
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 |
| = | 2528.92 | / | 2248.598 |
| | = | 1.1247 |
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)) |
| = | (142.496 / (142.496 + 180.437)) | / | (159.219 / (159.219 + 171.163)) |
| = | 0.441256 | / | 0.481924 |
| | = | 0.9156 |
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) |
| = | (430.171 / 2528.92) | / | (411.44 / 2248.598) |
| = | 0.170101 | / | 0.182976 |
| | = | 0.9296 |
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) |
| = | ((4616.96 + 1517.025) / 5518.219) | / | ((4634.808 + 1250.527) / 4997.535) |
| = | 1.111588 | / | 1.177648 |
| | = | 0.9439 |
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 |
| = | (1148.592 - 136.652 | - | 1236.029) | / | 5518.219 |
| | = | -0.040609 |
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.
MSCI has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.
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