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KEY (KeyCorp) Beneish M-Score : -2.54 (As of Mar. 16, 2025)


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What is KeyCorp 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 -2.54 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

KEY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85   Med: -2.5   Max: -2.22
Current: -2.54

During the past 13 years, the highest Beneish M-Score of KeyCorp was -2.22. The lowest was -2.85. And the median was -2.50.


KeyCorp 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 KeyCorp 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 * 1.0982+0.528 * 1+0.404 * 1.0002+0.892 * 0.7068+0.115 * 1.7783
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.468+4.679 * -0.004408-0.327 * 0.6227
=-2.54

* 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 $2,709 Mil.
Revenue was 793 + 642 + 1477 + 1481 = $4,393 Mil.
Gross Profit was 793 + 642 + 1477 + 1481 = $4,393 Mil.
Total Current Assets was $0 Mil.
Total Assets was $187,168 Mil.
Property, Plant and Equipment(Net PPE) was $614 Mil.
Depreciation, Depletion and Amortization(DDA) was $73 Mil.
Selling, General, & Admin. Expense(SGA) was $2,869 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $12,105 Mil.
Net Income was -244 + -410 + 274 + 219 = $-161 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1727 + -1205 + -217 + 359 = $664 Mil.
Total Receivables was $3,490 Mil.
Revenue was 1487 + 1520 + 1546 + 1662 = $6,215 Mil.
Gross Profit was 1487 + 1520 + 1546 + 1662 = $6,215 Mil.
Total Current Assets was $0 Mil.
Total Assets was $188,281 Mil.
Property, Plant and Equipment(Net PPE) was $661 Mil.
Depreciation, Depletion and Amortization(DDA) was $154 Mil.
Selling, General, & Admin. Expense(SGA) was $2,765 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $19,554 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)
=(2709 / 4393) / (3490 / 6215)
=0.616663 / 0.561545
=1.0982

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)
=(6215 / 6215) / (4393 / 4393)
=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 + 614) / 187168) / (1 - (0 + 661) / 188281)
=0.99672 / 0.996489
=1.0002

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
=4393 / 6215
=0.7068

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))
=(154 / (154 + 661)) / (73 / (73 + 614))
=0.188957 / 0.106259
=1.7783

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)
=(2869 / 4393) / (2765 / 6215)
=0.653084 / 0.444891
=1.468

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)
=((12105 + 0) / 187168) / ((19554 + 0) / 188281)
=0.064675 / 0.103855
=0.6227

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
=(-161 - 0 - 664) / 187168
=-0.004408

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.

KeyCorp has a M-score of -2.54 suggests that the company is unlikely to be a manipulator.


KeyCorp Beneish M-Score Related Terms

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KeyCorp Business Description

Address
127 Public Square, Cleveland, OH, USA, 44114-1306
With assets of over $180 billion, Ohio-based KeyCorp's bank footprint spans 16 states, but it is predominantly concentrated in its two largest markets: Ohio and New York. KeyCorp is primarily focused on serving middle-market commercial clients through a hybrid community/corporate bank model.
Executives
Christopher M. Gorman director, officer: Chairman and CEO 127 PUBLIC SQUARE, CLEVELAND OH 44114
Paine Andrew J Iii officer: Head of Institutional Bank 127 PUBLIC SQUARE, CLEVELAND OH 44114
Angela G Mago officer: Head of Commercial Bank 127 PUBLIC SQUARE, CLEVELAND OH 44114
Carlton L Highsmith director C/O NEWALLIANCE BANK, 195 CHURCH STREET, NEW HAVEN CT 06510
Amy G. Brady officer: Chief Information Officer 127 PUBLIC SQUARE, CLEVELAND OH 44114
Kenneth C Gavrity officer: Head of Enterprise Payments 127 PUBLIC SQUARE, CLEVELAND OH 44114
Douglas M Schosser officer: Chief Accounting Officer 127 PUBLIC SQUARE, CLEVELAND OH 44114-1306
Trina M Evans officer: Director, Corporate Center 127 PUBLIC SQUARE, CLEVELAND OH 44114
Devina A Rankin director 800 CAPITOL STREET 3000, HOUSTON TX 77002
Richard J Hipple director 10035 HUNTING DRIVE, BRECKSVILLE OH 44141
Victor B Alexander officer: Head of Consumer Bank 127 PUBLIC SQUARE, CLEVELAND OH 44114
Gillis Ruth Ann M director 10 SOUTH DEERBORN STREET, 37TH FLOOR, CHICAGO IL 80603
Allyson M Kidik officer: Chief Risk Review Officer 127 PUBLIC SQUARE, CLEVELAND OH 44114
Richard J Tobin director 3005 HIGHLAND PARKWAY, SUITE 200, DOWNERS GROVE IL 60515
Brian L Fishel officer: Chief Human Resources Officer 127 PUBLIC SQUARE, CLEVELAND OH 44114