Banco BTG Pactual S.A. (LTS:0RKB) Beneish M-Score: -1.95 (As of Jun. 24, 2026)


What is Banco BTG Pactual S.A. Beneish M-Score?

Banco BTG Pactual S.A. LTS:0RKB 79 Beneish M-Score is -1.95 as of Jun. 24, 2026. GuruFocus rates LTS:0RKB with a GF Score™ of 79/100. The stock has 3 warning signs investors should review. Among 702 Capital Markets companies, Banco BTG Pactual S.A. ranks worse than 57.26% on this metric.

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 -1.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Banco BTG Pactual S.A.'s Beneish M-Score or its related term are showing as below:

LTS:0RKB' s Beneish M-Score Range Over the Past 10 Years
Min: -4.68   Med: -2.11   Max: 42.97
Current: -1.95

During the past 13 years, the highest Beneish M-Score of Banco BTG Pactual S.A. was 42.97. The lowest was -4.68. And the median was -2.11.

Banco BTG Pactual S.A. 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 BTG Pactual S.A. 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 * 40.2592+0.528 * 1+0.404 * 0.9993+0.892 * 1.3342+0.115 * 1.5221
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8355+4.679 * 0.038435-0.327 * 1.1857
=34.14

* 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 (Mar26) TTM:Last Year (Mar25) TTM:
Total Receivables was €3,867.87 Mil.
Revenue was 2444.973 + 2173.806 + 2227.718 + 1956.355 = €8,802.85 Mil.
Gross Profit was 2444.973 + 2173.806 + 2227.718 + 1956.355 = €8,802.85 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €139,861.98 Mil.
Property, Plant and Equipment(Net PPE) was €264.85 Mil.
Depreciation, Depletion and Amortization(DDA) was €183.52 Mil.
Selling, General, & Admin. Expense(SGA) was €1,567.13 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €12,278.87 Mil.
Net Income was 755.965 + 687.265 + 689.063 + 626.78 = €2,759.07 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.00 Mil.
Cash Flow from Operations was -551.717 + 222.124 + 1558.498 + -3845.399 = €-2,616.49 Mil.
 Total Receivables was €72.01 Mil.
Revenue was 1854.343 + 1500.481 + 1607.764 + 1635.5 = €6,598.09 Mil.
Gross Profit was 1854.343 + 1500.481 + 1607.764 + 1635.5 = €6,598.09 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €97,742.07 Mil.
Property, Plant and Equipment(Net PPE) was €115.34 Mil.
Depreciation, Depletion and Amortization(DDA) was €190.59 Mil.
Selling, General, & Admin. Expense(SGA) was €1,405.96 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €7,237.43 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)
=(3867.874 / 8802.852) / (72.011 / 6598.088)
=0.439389 / 0.010914
=40.2592

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)
=(6598.088 / 6598.088) / (8802.852 / 8802.852)
=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 + 264.849) / 139861.979) / (1 - (0 + 115.335) / 97742.066)
=0.998106 / 0.99882
=0.9993

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
=8802.852 / 6598.088
=1.3342

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))
=(190.591 / (190.591 + 115.335)) / (183.516 / (183.516 + 264.849))
=0.622997 / 0.4093
=1.5221

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)
=(1567.127 / 8802.852) / (1405.956 / 6598.088)
=0.178025 / 0.213085
=0.8355

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)
=((12278.873 + 0) / 139861.979) / ((7237.426 + 0) / 97742.066)
=0.087793 / 0.074046
=1.1857

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
=(2759.073 - 0 - -2616.494) / 139861.979
=0.038435

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 BTG Pactual S.A. has a M-score of 34.14 signals that the company is likely to be a manipulator.

Frequently Asked Questions Learn more about Beneish M-Score →
What does a Beneish M-Score of -1.95 mean?
Banco BTG Pactual S.A. (LTS:0RKB) has a Beneish M-Score of -1.95 as of Jun. 24, 2026. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Banco BTG Pactual S.A. and its competitors. According to the industry distribution chart, Banco BTG Pactual S.A. ranks #402 out of 702 companies in the Capital Markets industry, placing it in the top 57.3%.
Is Banco BTG Pactual S.A.'s Beneish M-Score too high?
Banco BTG Pactual S.A.'s current Beneish M-Score is -1.95. Based on the distribution chart, Banco BTG Pactual S.A. ranks #402 out of 702 companies in the Capital Markets industry, which is below the industry midpoint. Overall, Banco BTG Pactual S.A. has a GF Score™ of 79/100, reflecting its overall financial health beyond just this single metric.
How does Banco BTG Pactual S.A.'s Beneish M-Score compare to MS and GS?
According to the Capital Markets industry distribution chart, Banco BTG Pactual S.A. ranks #402 out of 702 companies for Beneish M-Score. This places Banco BTG Pactual S.A. in the lower half of its industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Beneish M-Score for a Capital Markets company?
A good Beneish M-Score depends on the Capital Markets industry context. However, Beneish M-Score should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Beneish M-Score mean?
A high Beneish M-Score can signal that a stock is expensive relative to its fundamentals. The Beneish M-score measures the likelihood of earnings manipulation. View historical data on Banco BTG Pactual S.A. and its competitors. Banco BTG Pactual S.A.'s current Beneish M-Score is -1.95. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Banco BTG Pactual S.A. stock overvalued right now?
Banco BTG Pactual S.A. (LTS:0RKB) has a current Beneish M-Score of -1.95. The current Beneish M-Score is -1.95. Banco BTG Pactual S.A.'s overall GF Score™ is 79/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Beneish M-Score calculated?
Beneish M-Score is calculated from a company's financial statements. For Banco BTG Pactual S.A. (LTS:0RKB), the current Beneish M-Score is -1.95 as of Jun. 24, 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Banco BTG Pactual S.A. Business Description

Address Praia de Botafogo, 501 - 5th floor, Botafogo, Torre Corcovado, RJ, BRA, 22250-040
Banco BTG Pactual S.A. is a Brazil-based banking firm. It offers financial products and services regarding commercial, investments, credit, financing, capital leases, insurance, and foreign exchange portfolios, among others, in the country and several locations abroad.