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M&T Bank Corp (NYSE:MTB)
Beneish M-Score
-2.41 (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 -2.41 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: -2.41

-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 -2.40.


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 * 0.9285+0.528 * 1+0.404 * 1.0008+0.892 * 1.0852+0.115 * 1.1016
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0361+4.679 * -0.0048-0.327 * 0.7768
=-2.41

* 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 $5,673 Mil.
Revenue was 1292.897 + 1255.152 + 1132.526 + 1180.155 = $4,861 Mil.
Gross Profit was 1292.897 + 1255.152 + 1132.526 + 1180.155 = $4,861 Mil.
Total Current Assets was $0 Mil.
Total Assets was $124,626 Mil.
Property, Plant and Equipment(Net PPE) was $663 Mil.
Depreciation, Depletion and Amortization(DDA) was $184 Mil.
Selling, General & Admin. Expense(SGA) was $1,699 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $10,341 Mil.
Net Income was 298.528 + 270.965 + 280.401 + 286.688 = $1,137 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 448.22 + 494.568 + 689.757 + 99.717 = $1,732 Mil.
Accounts Receivable was $5,630 Mil.
Revenue was 1099.791 + 1133.483 + 1120.17 + 1125.526 = $4,479 Mil.
Gross Profit was 1099.791 + 1133.483 + 1120.17 + 1125.526 = $4,479 Mil.
Total Current Assets was $0 Mil.
Total Assets was $98,378 Mil.
Property, Plant and Equipment(Net PPE) was $602 Mil.
Depreciation, Depletion and Amortization(DDA) was $189 Mil.
Selling, General & Admin. Expense(SGA) was $1,511 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $10,509 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)
=(5673.303 / 4860.73) / (5630.46 / 4478.97)
=1.16717098 / 1.25708813
=0.9285

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)
=(1255.152 / 4478.97) / (1292.897 / 4860.73)
=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 + 662.891) / 124625.632) / (1 - (0 + 602.096) / 98377.783)
=0.99468094 / 0.99387976
=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
=4860.73 / 4478.97
=1.0852

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))
=(189.338 / (189.338 + 602.096)) / (183.888 / (183.888 + 662.891))
=0.2392341 / 0.21716174
=1.1016

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)
=(1698.987 / 4860.73) / (1511.055 / 4478.97)
=0.3495333 / 0.33736663
=1.0361

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)
=((10341.035 + 0) / 124625.632) / ((10509.143 + 0) / 98377.783)
=0.08297679 / 0.10682435
=0.7768

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
=(1136.582 - 0 - 1732.262) / 124625.632
=-0.0048

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 -2.41 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 1.01791.071.05691.06170.90031.0271.00910.94431.04251.0447
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 -2.42-2.37-2.34-2.36-2.44-2.33-2.36-2.32-2.61-2.42

M&T Bank Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.1161.17631.25581.18561.08321.06160.96770.92781.01310.9285
GMI 1111111111
AQI 0.999711.00031.0011.00111.0011.00081.00031.00091.0008
SGI 1.06391.03870.99140.97550.98180.98961.01531.0251.04761.0852
DEPI 1.05181.03751.01430.97220.99391.03151.06141.09851.17571.1016
SGAI 0.94430.97471.03651.0511.04251.03491.01171.00521.04471.0361
LVGI 1.08071.08391.32221.53641.55291.51291.28811.11630.93140.7768
TATA 0.00240.00340.0027-0.002-0.00030.0008-0.0011-0.005-0.0054-0.0048
M-score -2.32-2.29-2.35-2.53-2.61-2.60-2.59-2.57-2.42-2.41
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