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GuruFocus has detected 4 Warning Signs with M&T Bank Corp $MTB.
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M&T Bank Corp (NYSE:MTB)
Beneish M-Score
-2.50 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

M&T Bank Corp has a M-score of -2.50 suggests that the company is not a manipulator.

MTB' s Beneish M-Score Range Over the Past 10 Years
Min: -13.26   Max: -0.94
Current: -2.5

-13.26
-0.94

During the past 13 years, the highest Beneish M-Score of M&T Bank Corp was -0.94. The lowest was -13.26. And the median was -2.41.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 M&T Bank Corp 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 * 0.8267+0.528 * 1+0.404 * 0.9999+0.892 * 1.1036+0.115 * 0.954
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9612+4.679 * -0.0053-0.327 * 0.791
=-2.50

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $5,176 Mil.
Revenue was 1361.105 + 1341.223 + 1349.69 + 1312.073 = $5,364 Mil.
Gross Profit was 1361.105 + 1341.223 + 1349.69 + 1312.073 = $5,364 Mil.
Total Current Assets was $0 Mil.
Total Assets was $123,223 Mil.
Property, Plant and Equipment(Net PPE) was $673 Mil.
Depreciation, Depletion and Amortization(DDA) was $198 Mil.
Selling, General & Admin. Expense(SGA) was $2,108 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $8,088 Mil.
Net Income was 348.927 + 330.571 + 349.984 + 336.031 = $1,366 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1285.816 + 111.321 + 422.059 + 201.811 = $2,021 Mil.
Accounts Receivable was $5,673 Mil.
Revenue was 1292.897 + 1255.152 + 1132.526 + 1180.155 = $4,861 Mil.
Gross Profit was 1292.897 + 1255.152 + 1132.526 + 1180.155 = $4,861 Mil.
Total Current Assets was $0 Mil.
Total Assets was $124,626 Mil.
Property, Plant and Equipment(Net PPE) was $663 Mil.
Depreciation, Depletion and Amortization(DDA) was $184 Mil.
Selling, General & Admin. Expense(SGA) was $1,987 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $10,341 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(5175.883 / 5364.091) / (5673.303 / 4860.73)
=0.96491335 / 1.16717098
=0.8267

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)
=(4860.73 / 4860.73) / (5364.091 / 5364.091)
=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 plant, property 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 + 672.769) / 123223.251) / (1 - (0 + 662.891) / 124625.632)
=0.99454024 / 0.99468094
=0.9999

4. SGI = Sales Growth Index

Ratio of sales 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
=5364.091 / 4860.73
=1.1036

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(183.888 / (183.888 + 662.891)) / (198.274 / (198.274 + 672.769))
=0.21716174 / 0.22762826
=0.954

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(2107.529 / 5364.091) / (1986.816 / 4860.73)
=0.39289583 / 0.40874848
=0.9612

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((8087.619 + 0) / 123223.251) / ((10341.035 + 0) / 124625.632)
=0.06563387 / 0.08297679
=0.791

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
=(1365.513 - 0 - 2021.007) / 123223.251
=-0.0053

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

M&T Bank Corp has a M-score of -2.50 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

M&T Bank Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score

M&T Bank Corp Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.08321.06160.96770.92781.01310.92850.96690.90560.7870.8267
GMI 1111111111
AQI 1.00111.0011.00081.00031.00091.00081.00081.000710.9999
SGI 0.98180.98961.01531.0251.04761.08521.10131.1461.13461.1036
DEPI 0.99391.03151.06141.09851.17571.10161.03980.99070.90930.954
SGAI 1.18071.1711.14321.13481.0481.07081.07031.04820.98950.9612
LVGI 1.55291.51291.28811.11630.93140.77680.79580.77380.88630.791
TATA -0.00030.0008-0.0011-0.005-0.0054-0.0048-0.0052-0.00250.0011-0.0053
M-score -2.63-2.62-2.61-2.60-2.42-2.42-2.38-2.38-2.52-2.50
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