Swedbank AB 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 Swedbank AB 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 * 1.0093 | + | 0.892 * 1.2689 | + | 0.115 * 0.2384 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9498 | + | 4.679 * 0.028587 | - | 0.327 * 1.0019 |
| = | -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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was kr0 Mil.
Revenue was 17958 + 18912 + 18204 + 17923 = kr72,997 Mil.
Gross Profit was 17958 + 18912 + 18204 + 17923 = kr72,997 Mil.
Total Current Assets was kr346,835 Mil.
Total Assets was kr3,079,424 Mil.
Property, Plant and Equipment(Net PPE) was kr0 Mil.
Depreciation, Depletion and Amortization(DDA) was kr2,000 Mil.
Selling, General, & Admin. Expense(SGA) was kr7,155 Mil.
Total Current Liabilities was kr0 Mil.
Long-Term Debt & Capital Lease Obligation was kr987,730 Mil.
Net Income was 8428 + 8321 + 9123 + 9122 = kr34,994 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = kr0 Mil.
Cash Flow from Operations was 72168 + -29302 + -77092 + -18810 = kr-53,036 Mil.
|
Total Receivables was kr0 Mil.
Revenue was 17217 + 15755 + 13460 + 11097 = kr57,529 Mil.
Gross Profit was 17217 + 15755 + 13460 + 11097 = kr57,529 Mil.
Total Current Assets was kr361,343 Mil.
Total Assets was kr3,036,339 Mil.
Property, Plant and Equipment(Net PPE) was kr5,529 Mil.
Depreciation, Depletion and Amortization(DDA) was kr1,731 Mil.
Selling, General, & Admin. Expense(SGA) was kr5,937 Mil.
Total Current Liabilities was kr3,446 Mil.
Long-Term Debt & Capital Lease Obligation was kr968,577 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 / 72997) | / | (0 / 57529) |
| = | 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) |
| = | (57529 / 57529) | / | (72997 / 72997) |
| = | 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 - (346835 + 0) / 3079424) | / | (1 - (361343 + 5529) / 3036339) |
| = | 0.88737 | / | 0.879173 |
| | = | 1.0093 |
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 |
| = | 72997 | / | 57529 |
| | = | 1.2689 |
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)) |
| = | (1731 / (1731 + 5529)) | / | (2000 / (2000 + 0)) |
| = | 0.23843 | / | 1 |
| | = | 0.2384 |
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) |
| = | (7155 / 72997) | / | (5937 / 57529) |
| = | 0.098018 | / | 0.1032 |
| | = | 0.9498 |
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) |
| = | ((987730 + 0) / 3079424) | / | ((968577 + 3446) / 3036339) |
| = | 0.320752 | / | 0.32013 |
| | = | 1.0019 |
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 |
| = | (34994 - 0 | - | -53036) | / | 3079424 |
| | = | 0.028587 |
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.
Swedbank AB has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
LTS:0JZJ has been successfully added to your