Blackstone 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 Blackstone 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 * 0.8803 | + | 0.528 * 1 | + | 0.404 * 1.0035 | + | 0.892 * 1.6915 | + | 0.115 * 1.224 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.7148 | + | 4.679 * -0.013223 | - | 0.327 * 0.9263 |
| = | -1.93 |
* 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 MXN117,777 Mil.
Revenue was 56365.512 + 56834.003 + 42010.634 + 50591.31 = MXN205,801 Mil.
Gross Profit was 56365.512 + 56834.003 + 42010.634 + 50591.31 = MXN205,801 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN906,595 Mil.
Property, Plant and Equipment(Net PPE) was MXN28,050 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN679 Mil.
Selling, General, & Admin. Expense(SGA) was MXN26,014 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN256,248 Mil.
Net Income was 14679.764 + 15374.875 + 8141.71 + 14063.434 = MXN52,260 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = MXN0 Mil.
Cash Flow from Operations was 3366.214 + 24058.593 + 21224.957 + 15597.924 = MXN64,248 Mil.
|
Total Receivables was MXN79,098 Mil.
Revenue was 18770.123 + 37201.364 + 42234.289 + 23462.097 = MXN121,668 Mil.
Gross Profit was 18770.123 + 37201.364 + 42234.289 + 23462.097 = MXN121,668 Mil.
Total Current Assets was MXN0 Mil.
Total Assets was MXN683,851 Mil.
Property, Plant and Equipment(Net PPE) was MXN23,493 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN699 Mil.
Selling, General, & Admin. Expense(SGA) was MXN21,517 Mil.
Total Current Liabilities was MXN0 Mil.
Long-Term Debt & Capital Lease Obligation was MXN208,679 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) |
| = | (117777.247 / 205801.459) | / | (79098.061 / 121667.873) |
| = | 0.572286 | / | 0.650115 |
| | = | 0.8803 |
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) |
| = | (121667.873 / 121667.873) | / | (205801.459 / 205801.459) |
| = | 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 + 28049.623) / 906594.671) | / | (1 - (0 + 23493.378) / 683850.525) |
| = | 0.96906 | / | 0.965645 |
| | = | 1.0035 |
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 |
| = | 205801.459 | / | 121667.873 |
| | = | 1.6915 |
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)) |
| = | (699.444 / (699.444 + 23493.378)) | / | (678.58 / (678.58 + 28049.623)) |
| = | 0.028911 | / | 0.023621 |
| | = | 1.224 |
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) |
| = | (26013.899 / 205801.459) | / | (21516.722 / 121667.873) |
| = | 0.126403 | / | 0.176848 |
| | = | 0.7148 |
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) |
| = | ((256247.687 + 0) / 906594.671) | / | ((208679.402 + 0) / 683850.525) |
| = | 0.282649 | / | 0.305154 |
| | = | 0.9263 |
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 |
| = | (52259.783 - 0 | - | 64247.688) | / | 906594.671 |
| | = | -0.013223 |
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.
Blackstone has a M-score of -1.93 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
MEX:BX has been successfully added to your