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GuruFocus has detected 4 Warning Signs with M&T Bank Corp $MTB.
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M&T Bank Corp (NYSE:MTB)
Beneish M-Score
-2.52 (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.

M&T Bank Corp has a M-score of -2.52 suggests that the company is not a manipulator.

MTB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.63   Max: -2.08
Current: -2.52

-2.63
-2.08

During the past 13 years, the highest Beneish M-Score of M&T Bank Corp was -2.08. The lowest was -2.63. And the median was -2.37.


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 M&T Bank Corp 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 * 0.787+0.528 * 1+0.404 * 1+0.892 * 1.1346+0.115 * 0.9093
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.959+4.679 * 0.0011-0.327 * 0.8863
=-2.52

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $5,323 Mil.
Revenue was 1341.223 + 1349.69 + 1312.073 + 1292.897 = $5,296 Mil.
Gross Profit was 1341.223 + 1349.69 + 1312.073 + 1292.897 = $5,296 Mil.
Total Current Assets was $0 Mil.
Total Assets was $123,449 Mil.
Property, Plant and Equipment(Net PPE) was $675 Mil.
Depreciation, Depletion and Amortization(DDA) was $201 Mil.
Selling, General & Admin. Expense(SGA) was $2,028 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $9,494 Mil.
Net Income was 330.571 + 349.984 + 336.031 + 298.528 = $1,315 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 111.321 + 422.059 + 201.811 + 448.22 = $1,183 Mil.
Accounts Receivable was $5,962 Mil.
Revenue was 1255.152 + 1132.526 + 1180.155 + 1099.791 = $4,668 Mil.
Gross Profit was 1255.152 + 1132.526 + 1180.155 + 1099.791 = $4,668 Mil.
Total Current Assets was $0 Mil.
Total Assets was $122,788 Mil.
Property, Plant and Equipment(Net PPE) was $667 Mil.
Depreciation, Depletion and Amortization(DDA) was $175 Mil.
Selling, General & Admin. Expense(SGA) was $1,863 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $10,654 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)
=(5323.235 / 5295.883) / (5961.703 / 4667.624)
=1.00516477 / 1.27724577
=0.787

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)
=(4667.624 / 4667.624) / (5295.883 / 5295.883)
=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 - (0 + 675.263) / 123449.206) / (1 - (0 + 666.682) / 122787.884)
=0.99453003 / 0.99457046
=1

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
=5295.883 / 4667.624
=1.1346

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))
=(175.349 / (175.349 + 666.682)) / (200.591 / (200.591 + 675.263))
=0.2082453 / 0.22902333
=0.9093

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)
=(2027.717 / 5295.883) / (1863.494 / 4667.624)
=0.38288554 / 0.39923824
=0.959

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)
=((9493.835 + 0) / 123449.206) / ((10653.858 + 0) / 122787.884)
=0.07690479 / 0.08676636
=0.8863

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
=(1315.114 - 0 - 1183.411) / 123449.206
=0.0011

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.

M&T Bank Corp has a M-score of -2.52 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 local exchange's currency.

M&T Bank Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score

M&T Bank Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.18561.08321.06160.96770.92781.01310.92850.96690.90560.787
GMI 1111111111
AQI 1.0011.00111.0011.00081.00031.00091.00081.00081.00071
SGI 0.97550.98180.98961.01531.0251.04761.08521.10131.1461.1346
DEPI 0.97220.99391.03151.06141.09851.17571.10161.03980.99070.9093
SGAI 1.0511.18071.1711.14321.13481.0481.0361.03641.01590.959
LVGI 1.53641.55291.51291.28811.11630.93140.77680.79580.77380.8863
TATA -0.002-0.00030.0008-0.0011-0.005-0.0054-0.0048-0.0052-0.00250.0011
M-score -2.53-2.63-2.62-2.61-2.60-2.42-2.41-2.38-2.38-2.52
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