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Credit Agricole (Credit Agricole) Beneish M-Score : -2.21 (As of Apr. 30, 2024)


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What is Credit Agricole 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 -2.21 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CRARY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.62   Med: -2.42   Max: -2.21
Current: -2.21

During the past 13 years, the highest Beneish M-Score of Credit Agricole was -2.21. The lowest was -2.62. And the median was -2.42.


Credit Agricole 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 Credit Agricole 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 * 1+0.528 * 1+0.404 * 1.0458+0.892 * 1.1695+0.115 * 1.311
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1+4.679 * 0.019576-0.327 * 0.988
=-2.18

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $0 Mil.
Revenue was $25,578 Mil.
Gross Profit was $25,578 Mil.
Total Current Assets was $653,143 Mil.
Total Assets was $2,387,566 Mil.
Property, Plant and Equipment(Net PPE) was $9,363 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,255 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $2,251 Mil.
Long-Term Debt & Capital Lease Obligation was $303,730 Mil.
Net Income was $6,923 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $-39,817 Mil.
Total Receivables was $0 Mil.
Revenue was $21,871 Mil.
Gross Profit was $21,871 Mil.
Total Current Assets was $693,775 Mil.
Total Assets was $2,264,922 Mil.
Property, Plant and Equipment(Net PPE) was $6,377 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,169 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $39,659 Mil.
Long-Term Debt & Capital Lease Obligation was $254,132 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)
=(0 / 25577.972) / (0 / 21870.763)
=0 / 0
=1

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)
=(21870.763 / 21870.763) / (25577.972 / 25577.972)
=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 - (653142.857 + 9363.141) / 2387565.976) / (1 - (693775.424 + 6377.119) / 2264921.61)
=0.722518 / 0.690871
=1.0458

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
=25577.972 / 21870.763
=1.1695

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))
=(1169.492 / (1169.492 + 6377.119)) / (1255.18 / (1255.18 + 9363.141))
=0.154969 / 0.118209
=1.311

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)
=(0 / 25577.972) / (0 / 21870.763)
=0 / 0
=1

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)
=((303729.553 + 2250.818) / 2387565.976) / ((254132.415 + 39658.898) / 2264921.61)
=0.128156 / 0.129714
=0.988

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
=(6922.574 - 0 - -39816.794) / 2387565.976
=0.019576

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.

Credit Agricole has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.


Credit Agricole Beneish M-Score Related Terms

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Credit Agricole (Credit Agricole) Business Description

Address
12 Place des Etats-Unis, Montrouge Cedex, Paris, FRA, 92127
Credit Agricole S.A. is majority-owned by a group of 39 mutually owned, regional French banks, and together, they form the Credit Agricole Group, the largest cooperative bank globally. Credit Agricole S.A. houses all of Credit Agricole Group's activities, excluding the core French retail and commercial banking operations and including corporate and investment banking, its insurance operations, its international operations, notably in Italy, LCL, a separately branded French retail bank, and Credit Agricole S.A.'s majority interest in individually listed asset manager Amundi. Credit Agricole S.A. also acts as the central bank for the group.