Jefferies Financial Group (MEX:JEF) Beneish M-Score : -2.06 (As of Dec. 11, 2024)

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What is Jefferies Financial Group Beneish M-Score?

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 -2.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:JEF' s Beneish M-Score Range Over the Past 10 Years
Min: -28.95 Med: -2.27 Max: 1.04
Current: -2.06

During the past 13 years, the highest Beneish M-Score of Jefferies Financial Group was 1.04. The lowest was -28.95. And the median was -2.27.

Jefferies Financial Group Beneish M-Score Historical Data

The historical data trend for Jefferies Financial Group'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.

Jefferies Financial Group Beneish M-Score Chart

Jefferies Financial Group Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Nov19

Nov20

Nov21

Nov22

Nov23

Beneish M-Score

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-1.92

-2.29

-2.57

-2.89

-2.12

Jefferies Financial Group Quarterly Data
	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24	May24	Aug24
Beneish M-Score	Get a 7-Day Free Trial															-2.77	-2.12	-2.12	-1.92	-2.06

Competitive Comparison of Jefferies Financial Group's Beneish M-Score

For the Capital Markets subindustry, Jefferies Financial Group'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.

Jefferies Financial Group's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, Jefferies Financial Group's Beneish M-Score distribution charts can be found below:

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

Jefferies Financial Group 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 Jefferies Financial Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1237

0.528 * 0.967

0.404 * 1.0058

0.892 * 1.3063

0.115 * 1.2845

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8347

4.679 * 0.039732

0.327 * 1.173

-1.92

This Year (Aug24) TTM:

Last Year (Aug23) TTM:

Total Receivables was MXN131,270 Mil.
Revenue was 51199.314 + 42761.934 + 43531.027 + 34208.398 = MXN171,701 Mil.
Gross Profit was 30929.046 + 25598.147 + 25258.292 + 21454.839 = MXN103,240 Mil.
Total Current Assets was MXN728,236 Mil.
Total Assets was MXN1,248,134 Mil.
Property, Plant and Equipment(Net PPE) was MXN24,243 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN3,036 Mil.
Selling, General, & Admin. Expense(SGA) was MXN16,619 Mil.
Total Current Liabilities was MXN258,696 Mil.
Long-Term Debt & Capital Lease Obligation was MXN389,436 Mil.
Net Income was 3706.68 + 2710.152 + 2794.612 + 1249.98 = MXN10,461 Mil.
Non Operating Income was -856.896 + -705.489 + -1431.217 + -912.907 = MXN-3,907 Mil.
Cash Flow from Operations was -12795.149 + 555.398 + -22224.919 + -758.471 = MXN-35,223 Mil.

Total Receivables was MXN89,421 Mil.
Revenue was 34452.686 + 29306.499 + 32664.447 + 35011.811 = MXN131,435 Mil.
Gross Profit was 22013.027 + 17329.218 + 18250.78 + 18830.666 = MXN76,424 Mil.
Total Current Assets was MXN556,832 Mil.
Total Assets was MXN946,088 Mil.
Property, Plant and Equipment(Net PPE) was MXN15,698 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN2,619 Mil.
Selling, General, & Admin. Expense(SGA) was MXN15,241 Mil.
Total Current Liabilities was MXN172,590 Mil.
Long-Term Debt & Capital Lease Obligation was MXN246,250 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)
	=	(131270.027 / 171700.673)	/	(89420.835 / 131435.443)
	=	0.764528	/	0.68034
	=	1.1237

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)
	=	(76423.691 / 131435.443)	/	(103240.324 / 171700.673)
	=	0.581454	/	0.601281
	=	0.967

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 - (728235.652 + 24243.203) / 1248133.516)	/	(1 - (556832.395 + 15697.693) / 946088.2)
	=	0.397117	/	0.394845
	=	1.0058

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
	=	171700.673	/	131435.443
	=	1.3063

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))
	=	(2618.631 / (2618.631 + 15697.693))	/	(3036.278 / (3036.278 + 24243.203))
	=	0.142967	/	0.111303
	=	1.2845

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)
	=	(16619.253 / 171700.673)	/	(15241.411 / 131435.443)
	=	0.096792	/	0.115961
	=	0.8347

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)
	=	((389435.655 + 258696.165) / 1248133.516)	/	((246250.051 + 172589.875) / 946088.2)
	=	0.519281	/	0.442707
	=	1.173

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
	=	(10461.424 - -3906.509	-	-35223.141)	/	1248133.516
	=	0.039732

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.

Jefferies Financial Group has a M-score of -1.92 suggests that the company is unlikely to be a manipulator.

Jefferies Financial Group Beneish M-Score Related Terms

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Jefferies Financial Group Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Jefferies Financial Group Inc (MEX:JEF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

JEF:USA LN3:Germany LN3:Germany J1EF34:Brazil

Address

520 Madison Avenue, New York, NY, USA, 10022

Website

https://www.jefferies.com

Jefferies Financial Group Inc is a diversified financial services company. It has two reportable segments; Investment Banking and Capital Markets which is also the majority revenue generating segment, includes securities, commodities, corporate lending, futures and foreign exchange capital markets activities and its investment banking business, which provides underwriting and financial advisory services to clients across different sectors. The Asset Management reportable business segment provides alternative investment management services to investors in the U.S. and overseas and generates investment income from capital invested in and managed by it or its affiliated asset managers.