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M&T Bank Corp (NYSE:MTB)
Beneish M-Score
-2.38 (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 -2.38 suggests that the company is not a manipulator.

MTB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.05   Max: -0.94
Current: -2.38

-3.05
-0.94

During the past 13 years, the highest Beneish M-Score of M&T Bank Corp was -0.94. The lowest was -3.05. And the median was -2.39.


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 * 0.9669+0.528 * 1+0.404 * 1.0008+0.892 * 1.1013+0.115 * 1.0398
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0384+4.679 * -0.0052-0.327 * 0.7958
=-2.38

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $5,673 Mil.
Revenue was 1312.073 + 1292.897 + 1255.152 + 1132.526 = $4,993 Mil.
Gross Profit was 1312.073 + 1292.897 + 1255.152 + 1132.526 = $4,993 Mil.
Total Current Assets was $0 Mil.
Total Assets was $123,821 Mil.
Property, Plant and Equipment(Net PPE) was $658 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General & Admin. Expense(SGA) was $1,748 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $10,329 Mil.
Net Income was 336.031 + 298.528 + 270.965 + 280.401 = $1,186 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 201.811 + 448.22 + 494.568 + 689.757 = $1,834 Mil.
Accounts Receivable was $5,327 Mil.
Revenue was 1180.155 + 1099.791 + 1133.483 + 1120.17 = $4,534 Mil.
Gross Profit was 1180.155 + 1099.791 + 1133.483 + 1120.17 = $4,534 Mil.
Total Current Assets was $0 Mil.
Total Assets was $97,080 Mil.
Property, Plant and Equipment(Net PPE) was $591 Mil.
Depreciation, Depletion and Amortization(DDA) was $181 Mil.
Selling, General & Admin. Expense(SGA) was $1,529 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $10,176 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)
=(5672.727 / 4992.648) / (5327.294 / 4533.599)
=1.13621609 / 1.17506952
=0.9669

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)
=(4533.599 / 4533.599) / (4992.648 / 4992.648)
=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 + 658.216) / 123820.584) / (1 - (0 + 590.567) / 97080.076)
=0.99468411 / 0.9939167
=1.0008

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
=4992.648 / 4533.599
=1.1013

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))
=(180.962 / (180.962 + 590.567)) / (191.719 / (191.719 + 658.216))
=0.23454984 / 0.22556901
=1.0398

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)
=(1748.176 / 4992.648) / (1528.77 / 4533.599)
=0.35015006 / 0.33720892
=1.0384

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)
=((10328.751 + 0) / 123820.584) / ((10175.912 + 0) / 97080.076)
=0.08341708 / 0.10481978
=0.7958

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
=(1185.925 - 0 - 1834.356) / 123820.584
=-0.0052

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 -2.38 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.

M&T Bank Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.02511.32261.26881.05470.92090.9470.89841.1161.08321.0131
GMI 1111111111
AQI 1.00021.00020.99980.99960.99990.99891.00030.99971.00111.0009
SGI 1.04350.9721.03431.07821.08761.17691.07381.06390.98181.0476
DEPI 0.98771.06091.00391.06141.03261.16220.99171.05180.99391.1757
SGAI 1.01791.11211.02371.05460.90031.0271.00910.94431.04251.0447
LVGI 1.07461.31711.15360.81030.77530.74440.64691.08071.55290.9314
TATA 0.0052-0.0105-0.0163-0.0118-0.0138-0.01170.00640.0024-0.0003-0.0054
M-score -2.42-2.37-2.33-2.36-2.44-2.33-2.36-2.32-2.61-2.42

M&T Bank Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.17631.25581.18561.08321.06160.96770.92781.01310.92850.9669
GMI 1111111111
AQI 11.00031.0011.00111.0011.00081.00031.00091.00081.0008
SGI 1.03870.99140.97550.98180.98961.01531.0251.04761.08521.1013
DEPI 1.03751.01430.97220.99391.03151.06141.09851.17571.10161.0398
SGAI 0.97471.03651.0511.04251.03491.01171.00521.04471.03611.0384
LVGI 1.08391.32221.53641.55291.51291.28811.11630.93140.77680.7958
TATA 0.00340.0027-0.002-0.00030.0008-0.0011-0.005-0.0054-0.0048-0.0052
M-score -2.29-2.35-2.53-2.61-2.60-2.59-2.57-2.42-2.41-2.38
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