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The Goldmanchs Group (MIL:1GS) Beneish M-Score : -2.14 (As of Dec. 16, 2024)


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What is The Goldmanchs Group 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 -2.14 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:1GS' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73   Med: -2.43   Max: -1.83
Current: -2.14

During the past 13 years, the highest Beneish M-Score of The Goldmanchs Group was -1.83. The lowest was -2.73. And the median was -2.43.


The Goldmanchs 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 The Goldmanchs Group 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 * 0.9157+0.528 * 1+0.404 * 1.0036+0.892 * 1.0982+0.115 * 1.1633
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9402+4.679 * 0.058812-0.327 * 1.0235
=-2.17

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was €146,294 Mil.
Revenue was 11441.799 + 11827.099 + 13075.96 + 10378.606 = €46,723 Mil.
Gross Profit was 11441.799 + 11827.099 + 13075.96 + 10378.606 = €46,723 Mil.
Total Current Assets was €0 Mil.
Total Assets was €1,557,000 Mil.
Property, Plant and Equipment(Net PPE) was €9,529 Mil.
Depreciation, Depletion and Amortization(DDA) was €2,452 Mil.
Selling, General, & Admin. Expense(SGA) was €15,761 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €234,710 Mil.
Net Income was 2693.99 + 2826.947 + 3801.44 + 1841.336 = €11,164 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was -34292.06 + 5685.48 + -25794.96 + -26004.286 = €-80,406 Mil.
Total Receivables was €145,469 Mil.
Revenue was 11072.529 + 10056.085 + 11417.216 + 9999.792 = €42,546 Mil.
Gross Profit was 11072.529 + 10056.085 + 11417.216 + 9999.792 = €42,546 Mil.
Total Current Assets was €0 Mil.
Total Assets was €1,477,792 Mil.
Property, Plant and Equipment(Net PPE) was €14,339 Mil.
Depreciation, Depletion and Amortization(DDA) was €4,480 Mil.
Selling, General, & Admin. Expense(SGA) was €15,265 Mil.
Total Current Liabilities was €0 Mil.
Long-Term Debt & Capital Lease Obligation was €217,658 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)
=(146293.568 / 46723.464) / (145469.25 / 42545.622)
=3.131051 / 3.419136
=0.9157

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)
=(42545.622 / 42545.622) / (46723.464 / 46723.464)
=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 + 9528.976) / 1557000.08) / (1 - (0 + 14338.911) / 1477792.361)
=0.99388 / 0.990297
=1.0036

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
=46723.464 / 42545.622
=1.0982

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))
=(4480.274 / (4480.274 + 14338.911)) / (2451.755 / (2451.755 + 9528.976))
=0.23807 / 0.204642
=1.1633

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)
=(15760.747 / 46723.464) / (15264.511 / 42545.622)
=0.33732 / 0.35878
=0.9402

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)
=((234709.599 + 0) / 1557000.08) / ((217657.604 + 0) / 1477792.361)
=0.150745 / 0.147286
=1.0235

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
=(11163.713 - 0 - -80405.826) / 1557000.08
=0.058812

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.

The Goldmanchs Group has a M-score of -2.17 suggests that the company is unlikely to be a manipulator.


The Goldmanchs Group Beneish M-Score Related Terms

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The Goldmanchs Group Business Description

Address
200 West Street, New York, NY, USA, 10282
Goldman Sachs is a leading global investment banking and asset management firm. Approximately 20% of its revenue comes from investment banking, 45% from trading, 20% from asset management and 15% from wealth management and retail financial services. Around 60% of the company's net revenue is generated in the Americas, 15% in Asia, and 25% in Europe, the Middle East, and Africa.