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CME Group Beneish M-Score

: -2.36 (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 -2.36 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72   Med: -2.46   Max: 11.38
Current: -2.36

During the past 13 years, the highest Beneish M-Score of CME Group was 11.38. The lowest was -3.72. And the median was -2.46.


CME Group Beneish M-Score Historical Data

The historical data trend for CME 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.

CME Group 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 -2.42 -1.99 -2.61 -2.86 -2.73

CME Group Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.72 -2.70 -2.73 -2.48 -2.36

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, CME 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.

   

CME Group Beneish M-Score Distribution

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

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



CME 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 CME 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 * 1.0885+0.528 * 0.9653+0.404 * 1.0545+0.892 * 1.0497+0.115 * 1.0335
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9588+4.679 * -0.0044-0.327 * 0.9905
=-2.36

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $582 Mil.
Revenue was 1237.2 + 1346.6 + 1147.3 + 1109.9 = $4,841 Mil.
Gross Profit was 1051.9 + 1161.4 + 945.6 + 911.3 = $4,070 Mil.
Total Current Assets was $141,451 Mil.
Total Assets was $176,671 Mil.
Property, Plant and Equipment(Net PPE) was $482 Mil.
Depreciation, Depletion and Amortization(DDA) was $373 Mil.
Selling, General, & Admin. Expense(SGA) was $610 Mil.
Total Current Liabilities was $139,000 Mil.
Long-Term Debt & Capital Lease Obligation was $3,437 Mil.
Net Income was 662.5 + 711 + 625.2 + 926.5 = $2,925 Mil.
Non Operating Income was 156.9 + 99.7 + 209.5 + 524 = $990 Mil.
Cash Flow from Operations was 617.6 + 799.1 + 668.3 + 631.6 = $2,717 Mil.
Total Receivables was $510 Mil.
Revenue was 1179.2 + 1253.3 + 1098.5 + 1080.7 = $4,612 Mil.
Gross Profit was 967.5 + 1028.3 + 882.9 + 864.3 = $3,743 Mil.
Total Current Assets was $144,849 Mil.
Total Assets was $178,699 Mil.
Property, Plant and Equipment(Net PPE) was $528 Mil.
Depreciation, Depletion and Amortization(DDA) was $433 Mil.
Selling, General, & Admin. Expense(SGA) was $606 Mil.
Total Current Liabilities was $142,013 Mil.
Long-Term Debt & Capital Lease Obligation was $3,445 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)
=(582.3 / 4841) / (509.6 / 4611.7)
=0.12028507 / 0.11050155
=1.0885

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)
=(3743 / 4611.7) / (4070.2 / 4841)
=0.81163129 / 0.8407767
=0.9653

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 - (141451 + 481.6) / 176671.3) / (1 - (144849 + 527.6) / 178699.1)
=0.19662899 / 0.18647268
=1.0545

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
=4841 / 4611.7
=1.0497

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))
=(433.2 / (433.2 + 527.6)) / (372.7 / (372.7 + 481.6))
=0.45087427 / 0.43626361
=1.0335

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)
=(610.2 / 4841) / (606.3 / 4611.7)
=0.12604834 / 0.13146996
=0.9588

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)
=((3436.7 + 139000.1) / 176671.3) / ((3444.6 + 142012.8) / 178699.1)
=0.80622489 / 0.81397948
=0.9905

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
=(2925.2 - 990.1 - 2716.6) / 176671.3
=-0.0044

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.

CME Group has a M-score of -2.36 suggests that the company is unlikely to be a manipulator.


CME Group Beneish M-Score Related Terms

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CME Group Business Description

CME Group logo
Address
20 South Wacker Drive, Chicago, IL, USA, 60606
Based in Chicago, CME Group operates exchanges giving investors, suppliers, and businesses the ability to trade futures and derivatives based on interest rates, equity indexes, foreign currencies, energy, metals, and commodities. The CME was founded in 1898 and in 2002 completed its initial public offering. Since then, CME Group has consolidated parts of the industry by merging with crosstown rival, CBOT Holdings in 2007 before acquiring Nymex Holdings in 2008 and NEX in 2018. In addition, the company has a 27% stake in S&P/Dow Jones Indices LLC, making the Chicago Mercantile Exchange the exclusive venue to trade and clear S&P futures contracts. Through CME's acquisition of NEX in 2018 it has also expanded into cash foreign exchange, fixed income trading, and collateral optimization.
Executives
Mccourt Timothy Francis officer: Sr MD Global Head Equity & FX 20 S WACKER DRIVE CHICAGO IL 60606
Fitzpatrick Lynne officer: Sr MD Deputy CFO 20 S WACKER DRIVE CHICAGO IL 60606
Sprague Suzanne officer: Sr MD Global Head of Clearing 20 SOUTH WACKER DRIVE 18S CHICAGO IL 60606
Dennis Michael G. director 20 S. WACKER DR. CHICAGO IL 60606
Maloney Patrick W director 20 S. WACKER DR. CHICAGO IL 60201
Mulchrone Patrick J director 20 S. WACKER DR. CHICAGO IL 60606
Seifu Rahael director 20 S. WACKER CHICAGO IL 60606
Harris Yra G director 20 S. WACKER DR CHICAGO IL 60606
Lockett Phyllis M director 20 S. WACKER DR. CHICAGO IL 60606
Tierney Robert J Jr director 20 S. WACKER DR. CHICAGO IL 60606
Kaye Daniel G director 1742 APPLEBY ROAD INVERNESS IL 60067
Spencer Michael A director 20 S. WACKER DR. CHICAGO IL 60606
Lucas Deborah J director C/O ANTHRACITE CAPITAL, INC. 40 EAST 52ND STREET NEW YORK NY 10022
Hertshten Gedon director 20 S. WACKER DR. CHICAGO IL 60606
Winkler Julie officer: Chief Commercial Officer 20 S. WACKER DR. CHICAGO IL 60606

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