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FinecoBank SpA Beneish M-Score

: -2.98 (As of Today)
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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 -2.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:FBK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98   Med: -2.19   Max: 0.19
Current: -2.98

During the past 12 years, the highest Beneish M-Score of FinecoBank SpA was 0.19. The lowest was -2.98. And the median was -2.19.


FinecoBank SpA Beneish M-Score Historical Data

The historical data trend for FinecoBank SpA'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.

FinecoBank SpA Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.93 -2.28 -2.04 -2.04 -2.98

FinecoBank SpA Quarterly Data
Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Dec18 Jun19 Dec19 Mar20 Jun20 Dec20 Mar21 Jun21 Dec21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - -2.04 - - -2.98

Competitive Comparison

For the Banks - Regional subindustry, FinecoBank SpA'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.

   

FinecoBank SpA Beneish M-Score Distribution

For the Banks industry and Financial Services sector, FinecoBank SpA's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where FinecoBank SpA's Beneish M-Score falls into.



FinecoBank SpA 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 FinecoBank SpA 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 * 1.2981+0.528 * 1+0.404 * 1.0212+0.892 * 1.0771+0.115 * 0.959
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8844+4.679 * 0.0176-0.327 * 3.9158
=-2.98

* 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 (Dec21) TTM:Last Year (Dec20) TTM:
Total Receivables was €99.8 Mil.
Revenue was €947.6 Mil.
Gross Profit was €947.6 Mil.
Total Current Assets was €1,874.4 Mil.
Total Assets was €33,867.2 Mil.
Property, Plant and Equipment(Net PPE) was €153.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €26.2 Mil.
Selling, General, & Admin. Expense(SGA) was €89.0 Mil.
Total Current Liabilities was €203.8 Mil.
Long-Term Debt & Capital Lease Obligation was €562.6 Mil.
Net Income was €380.7 Mil.
Gross Profit was €0.0 Mil.
Cash Flow from Operations was €-215.3 Mil.
Total Receivables was €71.4 Mil.
Revenue was €879.8 Mil.
Gross Profit was €879.8 Mil.
Total Current Assets was €2,365.5 Mil.
Total Assets was €31,755.0 Mil.
Property, Plant and Equipment(Net PPE) was €156.4 Mil.
Depreciation, Depletion and Amortization(DDA) was €25.4 Mil.
Selling, General, & Admin. Expense(SGA) was €93.4 Mil.
Total Current Liabilities was €117.3 Mil.
Long-Term Debt & Capital Lease Obligation was €66.2 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)
=(99.824 / 947.64) / (71.396 / 879.809)
=0.10533958 / 0.08114943
=1.2981

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)
=(879.809 / 879.809) / (947.64 / 947.64)
=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 - (1874.43 + 153.819) / 33867.175) / (1 - (2365.536 + 156.36) / 31755.017)
=0.94011166 / 0.92058275
=1.0212

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
=947.64 / 879.809
=1.0771

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))
=(25.373 / (25.373 + 156.36)) / (26.209 / (26.209 + 153.819))
=0.13961691 / 0.14558291
=0.959

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)
=(88.96 / 947.64) / (93.387 / 879.809)
=0.09387531 / 0.10614463
=0.8844

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)
=((562.601 + 203.8) / 33867.175) / ((66.213 + 117.299) / 31755.017)
=0.02262961 / 0.00577899
=3.9158

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
=(380.711 - 0 - -215.256) / 33867.175
=0.0176

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.

FinecoBank SpA has a M-score of -2.98 suggests that the company is unlikely to be a manipulator.


FinecoBank SpA Beneish M-Score Related Terms

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FinecoBank SpA Business Description

FinecoBank SpA logo
Traded in Other Exchanges
Address
Piazza Durante, 11, Milan, ITA, 20131
FinecoBank SpA business model integrates direct banking and financial advice, with operations split into three segments, including banking, brokerage, and investing. Unlike most banks, FinecoBank's net revenue is split nearly evenly between net interest and net fee and commission income, given its strategic emphasis on private banking. The majority of its balance sheet assets are exposed to central Italy, with some notable exposure to the rest of Italy and other European countries. The bank has some sovereign debt exposure, mostly to in Italian and Spanish debt securities.

FinecoBank SpA Headlines

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