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Fifth Third Bancorp (BSP:FFTD34) Beneish M-Score : -2.64 (As of May. 11, 2024)


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What is Fifth Third Bancorp Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:FFTD34' s Beneish M-Score Range Over the Past 10 Years
Min: -2.78   Med: -2.5   Max: -2.26
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Fifth Third Bancorp was -2.26. The lowest was -2.78. And the median was -2.50.


Fifth Third Bancorp 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 Fifth Third Bancorp 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 * 0.9681+0.528 * 1+0.404 * 1.0003+0.892 * 0.9267+0.115 * 0.9553
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0654+4.679 * -0.005788-0.327 * 1.1652
=-2.67

* 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 (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was R$12,733 Mil.
Revenue was 10263.368 + 10294.48 + 10465.105 + 10309.259 = R$41,332 Mil.
Gross Profit was 10263.368 + 10294.48 + 10465.105 + 10309.259 = R$41,332 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$1,068,197 Mil.
Property, Plant and Equipment(Net PPE) was R$13,958 Mil.
Depreciation, Depletion and Amortization(DDA) was R$2,327 Mil.
Selling, General, & Admin. Expense(SGA) was R$15,366 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$76,908 Mil.
Net Income was 2589.496 + 2596.894 + 3259.542 + 2917.074 = R$11,363 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was 1922.203 + 10152.386 + 3141.013 + 2329.776 = R$17,545 Mil.
Total Receivables was R$14,193 Mil.
Revenue was 11386 + 11975.248 + 11195.086 + 10044.923 = R$44,601 Mil.
Gross Profit was 11386 + 11975.248 + 11195.086 + 10044.923 = R$44,601 Mil.
Total Current Assets was R$0 Mil.
Total Assets was R$1,086,811 Mil.
Property, Plant and Equipment(Net PPE) was R$14,568 Mil.
Depreciation, Depletion and Amortization(DDA) was R$2,303 Mil.
Selling, General, & Admin. Expense(SGA) was R$15,564 Mil.
Total Current Liabilities was R$0 Mil.
Long-Term Debt & Capital Lease Obligation was R$67,154 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)
=(12733.349 / 41332.212) / (14193.435 / 44601.257)
=0.308073 / 0.318229
=0.9681

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)
=(44601.257 / 44601.257) / (41332.212 / 41332.212)
=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 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 - (0 + 13958.379) / 1068196.979) / (1 - (0 + 14568.454) / 1086810.85)
=0.986933 / 0.986595
=1.0003

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
=41332.212 / 44601.257
=0.9267

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))
=(2302.912 / (2302.912 + 14568.454)) / (2327.018 / (2327.018 + 13958.379))
=0.136498 / 0.14289
=0.9553

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)
=(15366.43 / 41332.212) / (15564.186 / 44601.257)
=0.371779 / 0.348963
=1.0654

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)
=((76908.031 + 0) / 1068196.979) / ((67154.48 + 0) / 1086810.85)
=0.071998 / 0.06179
=1.1652

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
=(11363.006 - 0 - 17545.378) / 1068196.979
=-0.005788

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.

Fifth Third Bancorp has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.


Fifth Third Bancorp Beneish M-Score Related Terms

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Fifth Third Bancorp (BSP:FFTD34) Business Description

Address
38 Fountain Square Plaza, Cincinnati, OH, USA, 45263
Fifth Third Bancorp is a diversified financial-services company headquartered in Cincinnati. The company has over $200 billion in assets and operates numerous full-service banking centers and ATMs throughout Ohio, Kentucky, Indiana, Michigan, Illinois, Florida, Tennessee, West Virginia, Georgia, and North Carolina.