Banco Bilbao Vizcaya Argentaria 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 Banco Bilbao Vizcaya Argentaria 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 * 0.8643 | + | 0.528 * 1 | + | 0.404 * 0.9994 | + | 0.892 * 3.8444 | + | 0.115 * 0.8284 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9687 | + | 4.679 * 0.012306 | - | 0.327 * 1.0252 |
| = | -0.03 |
* 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 (Dec24) TTM: | Last Year (Dec23) TTM: |
Total Receivables was ARS50,737,958 Mil.
Revenue was 9856753.927 + 9195902.886 + 9776276.642 + 7526638.587 = ARS36,355,572 Mil.
Gross Profit was 9856753.927 + 9195902.886 + 9776276.642 + 7526638.587 = ARS36,355,572 Mil.
Total Current Assets was ARS0 Mil.
Total Assets was ARS816,885,885 Mil.
Property, Plant and Equipment(Net PPE) was ARS10,053,466 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS1,531,168 Mil.
Selling, General, & Admin. Expense(SGA) was ARS12,665,097 Mil.
Total Current Liabilities was ARS0 Mil.
Long-Term Debt & Capital Lease Obligation was ARS80,117,853 Mil.
Net Income was 2573120.419 + 2771324.639 + 2693247.578 + 2014673.913 = ARS10,052,367 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = ARS0 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = ARS0 Mil.
|
Total Receivables was ARS15,269,473 Mil.
Revenue was 2928154.853 + 2971774.008 + 2085113.759 + 1471684.069 = ARS9,456,727 Mil.
Gross Profit was 2928154.853 + 2971774.008 + 2085113.759 + 1471684.069 = ARS9,456,727 Mil.
Total Current Assets was ARS0 Mil.
Total Assets was ARS305,317,817 Mil.
Property, Plant and Equipment(Net PPE) was ARS3,561,578 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS437,897 Mil.
Selling, General, & Admin. Expense(SGA) was ARS3,400,754 Mil.
Total Current Liabilities was ARS0 Mil.
Long-Term Debt & Capital Lease Obligation was ARS29,207,538 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) |
| = | (50737958.115 / 36355572.042) | / | (15269473.282 / 9456726.689) |
| = | 1.395603 | / | 1.614668 |
| | = | 0.8643 |
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) |
| = | (9456726.689 / 9456726.689) | / | (36355572.042 / 36355572.042) |
| = | 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 + 10053465.969) / 816885884.817) | / | (1 - (0 + 3561577.972) / 305317816.794) |
| = | 0.987693 | / | 0.988335 |
| | = | 0.9994 |
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 |
| = | 36355572.042 | / | 9456726.689 |
| | = | 3.8444 |
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)) |
| = | (437896.793 / (437896.793 + 3561577.972)) | / | (1531168.219 / (1531168.219 + 10053465.969)) |
| = | 0.109489 | / | 0.132172 |
| | = | 0.8284 |
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) |
| = | (12665097.033 / 36355572.042) | / | (3400754.194 / 9456726.689) |
| = | 0.348367 | / | 0.359612 |
| | = | 0.9687 |
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) |
| = | ((80117853.403 + 0) / 816885884.817) | / | ((29207537.623 + 0) / 305317816.794) |
| = | 0.098077 | / | 0.095663 |
| | = | 1.0252 |
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 |
| = | (10052366.549 - 0 | - | 0) | / | 816885884.817 |
| | = | 0.012306 |
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.
Banco Bilbao Vizcaya Argentaria has a M-score of -0.03 signals that the company is likely to be a manipulator.
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