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Equifax (Equifax) Beneish M-Score

: -2.61 (As of Today)
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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 -2.61 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

EFX' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.61   Max: -2.35
Current: -2.61

During the past 13 years, the highest Beneish M-Score of Equifax was -2.35. The lowest was -2.97. And the median was -2.61.


Equifax Beneish M-Score Historical Data

The historical data trend for Equifax's Beneish M-Score can be seen below:

* 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.

* Premium members only.

Equifax Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.97 -2.59 -2.47 -2.35 -2.61

Equifax Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.35 -2.62 -2.65 -2.56 -2.61

Competitive Comparison

For the Consulting Services subindustry, Equifax's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Equifax Beneish M-Score Distribution

For the Business Services industry and Industrials sector, Equifax's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Equifax's Beneish M-Score falls into.



Equifax 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 Equifax 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 * 1.0301+0.528 * 1.0332+0.404 * 0.995+0.892 * 1.0279+0.115 * 1.0443
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0144+4.679 * -0.048607-0.327 * 0.931
=-2.61

* 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 $908 Mil.
Revenue was 1326.5 + 1319.1 + 1317.6 + 1302 = $5,265 Mil.
Gross Profit was 744.9 + 733.9 + 729.6 + 721.6 = $2,930 Mil.
Total Current Assets was $1,356 Mil.
Total Assets was $12,280 Mil.
Property, Plant and Equipment(Net PPE) was $1,834 Mil.
Depreciation, Depletion and Amortization(DDA) was $620 Mil.
Selling, General, & Admin. Expense(SGA) was $1,386 Mil.
Total Current Liabilities was $2,019 Mil.
Long-Term Debt & Capital Lease Obligation was $4,748 Mil.
Net Income was 132.4 + 162.2 + 138.3 + 112.4 = $545 Mil.
Non Operating Income was -2 + 7.1 + 15.9 + 4.4 = $25 Mil.
Cash Flow from Operations was 322.1 + 381.7 + 262.1 + 150.9 = $1,117 Mil.
Total Receivables was $858 Mil.
Revenue was 1197.9 + 1244.3 + 1316.7 + 1363.2 = $5,122 Mil.
Gross Profit was 658.7 + 701.8 + 774.6 + 809.8 = $2,945 Mil.
Total Current Assets was $1,371 Mil.
Total Assets was $11,548 Mil.
Property, Plant and Equipment(Net PPE) was $1,587 Mil.
Depreciation, Depletion and Amortization(DDA) was $569 Mil.
Selling, General, & Admin. Expense(SGA) was $1,329 Mil.
Total Current Liabilities was $2,015 Mil.
Long-Term Debt & Capital Lease Obligation was $4,820 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)
=(908.2 / 5265.2) / (857.7 / 5122.1)
=0.172491 / 0.167451
=1.0301

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)
=(2944.9 / 5122.1) / (2930 / 5265.2)
=0.57494 / 0.556484
=1.0332

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 - (1356.3 + 1834) / 12280) / (1 - (1370.5 + 1587) / 11547.9)
=0.740204 / 0.743893
=0.995

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
=5265.2 / 5122.1
=1.0279

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))
=(568.6 / (568.6 + 1587)) / (619.8 / (619.8 + 1834))
=0.263778 / 0.252588
=1.0443

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)
=(1385.7 / 5265.2) / (1328.9 / 5122.1)
=0.263181 / 0.259444
=1.0144

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)
=((4747.8 + 2019) / 12280) / ((4820.1 + 2015.2) / 11547.9)
=0.551042 / 0.591908
=0.931

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
=(545.3 - 25.4 - 1116.8) / 12280
=-0.048607

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.

Equifax has a M-score of -2.61 suggests that the company is unlikely to be a manipulator.


Equifax Beneish M-Score Related Terms

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Equifax (Equifax) Business Description

Traded in Other Exchanges
Address
1550 Peachtree Street N.W., Atlanta, GA, USA, 30309
Along with Experian and TransUnion, Equifax is one of the leading credit bureaus in the United States. Equifax's credit reports provide credit histories on millions of consumers, and the firm's services are critical to lenders' credit decisions. In addition, about a third of the firm's revenue comes from workforce solutions, which provides income verification and employer human resources services. Equifax generates over 20% of its revenue from outside the United States.
Executives
Kelley John J Iii officer: CVP & CLC 1550 PEACHTREE STREET, NW, ATLANTA GA 30309
Julia A Houston officer: Chief Transformation Officer 1155 PERIMETER CENTER WEST, ATLANTA GA 30338
Rodolfo O Ploder officer: Group Executive C/O EQUIFAX INC., 1550 PEACHTREE STREET NW, ATLANTA GA 30309
Bryson R Koehler officer: Chief Technology Officer 1550 PEACHTREE STREET NW, ATLANTA GA 30309
Mark W Begor director, officer: CEO 181 METRO DRIVE, SAN JOSE CA 95110
Melissa D Goodwin director C/O WRIGHT EXPRESS CORPORATION, 97 DARLING AVENUE, SOUTH PORTLAND ME 04106
Gamble John W Jr officer: CVP & CFO ONE LEXMARK CENTRE DR, 740 WEST NEW CIRCLE RD, LEXINGTON KY 40550
James M Griggs officer: SVP & Corp Controller 1550 PEACHTREE STREET NW, ATLANTA GA 30309
Carla Chaney officer: CVP & Chief HR Officer 5302 LAKE VIEW CLUB, DUNWOODY GA 30338
Todd Michael Horvath officer: EVP, President USIS EQUIFAX INC, 1550 PEACHTREE STREET NW, ATLANTA GA 30309
Karen Linn Fichuk director EQUIFAX INC., 1550 PEACHTREE STREET NW, ATLANTA GA 30309
Lisa M Nelson officer: President-International EQUIFAX INC., 1550 PEACHTREE STREET NW, ATLANTA GA 30309
Sid Singh officer: President - USIS 1550 PEACHTREE STREET NW, ATLANTA GA 30309
Prasanna Dhore officer: Chief Data & Analytics Officer 10375 PROFESSIONAL CIRCLE, RENO NV 89521
Audrey B Tillman director 1932 WYNNTON RD, COLUMBUS GA 31999