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Ameriprise Financial Beneish M-Score

: -2.41 (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 -2.41 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:AMP' s Beneish M-Score Range Over the Past 10 Years
Min: -7.11   Med: -2.49   Max: -2.29
Current: -2.41

-7.11
-2.29

During the past 13 years, the highest Beneish M-Score of Ameriprise Financial was -2.29. The lowest was -7.11. And the median was -2.49.


Ameriprise Financial Beneish M-Score Historical Data

The historical data trend for Ameriprise Financial'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.

Ameriprise Financial Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.42 -2.42 -2.45 -2.33 -2.47

Ameriprise Financial Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -2.59 -2.58 -2.47 -2.40 -2.41

Competitive Comparison

For the Asset Management subindustry, Ameriprise Financial'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.

   

Ameriprise Financial Beneish M-Score Distribution

For the Asset Management industry and Financial Services sector, Ameriprise Financial's Beneish M-Score distribution charts can be found below:

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



Ameriprise Financial 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 Ameriprise Financial 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 * 1.0386+0.528 * 1+0.404 * 1.0288+0.892 * 1.0627+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0327+4.679 * 0.0025-0.327 * 1.1142
=-2.41

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $8,030 Mil.
Revenue was 3420 + 3355 + 3189 + 3013 = $12,977 Mil.
Gross Profit was 3420 + 3355 + 3189 + 3013 = $12,977 Mil.
Total Current Assets was $51,440 Mil.
Total Assets was $171,703 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $231 Mil.
Selling, General, & Admin. Expense(SGA) was $7,776 Mil.
Total Current Liabilities was $2,234 Mil.
Long-Term Debt & Capital Lease Obligation was $5,391 Mil.
Net Income was 591 + 437 + 177 + -140 = $1,065 Mil.
Non Operating Income was 75 + 71 + -700 + 340 = $-214 Mil.
Cash Flow from Operations was 1931 + -1000 + -1016 + 936 = $851 Mil.
Accounts Receivable was $7,275 Mil.
Revenue was 2730 + 3026 + 3104 + 3351 = $12,211 Mil.
Gross Profit was 2730 + 3026 + 3104 + 3351 = $12,211 Mil.
Total Current Assets was $49,440 Mil.
Total Assets was $154,902 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $188 Mil.
Selling, General, & Admin. Expense(SGA) was $7,085 Mil.
Total Current Liabilities was $1,850 Mil.
Long-Term Debt & Capital Lease Obligation was $4,324 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(8030 / 12977) / (7275 / 12211)
=0.61878708 / 0.5957743
=1.0386

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)
=(12211 / 12211) / (12977 / 12977)
=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 - (51440 + 0) / 171703) / (1 - (49440 + 0) / 154902)
=0.70041292 / 0.68083046
=1.0288

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
=12977 / 12211
=1.0627

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))
=(188 / (188 + 0)) / (231 / (231 + 0))
=1 / 1
=1

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)
=(7776 / 12977) / (7085 / 12211)
=0.59921399 / 0.58021456
=1.0327

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)
=((5391 + 2234) / 171703) / ((4324 + 1850) / 154902)
=0.04440808 / 0.03985746
=1.1142

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
=(1065 - -214 - 851) / 171703
=0.0025

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.

Ameriprise Financial has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.


Ameriprise Financial Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Ameriprise Financial's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Ameriprise Financial Business Description

Ameriprise Financial logo
Industry
Financial Services » Asset Management NAICS : 523930 SIC : 6282
Traded in Other Exchanges
Address
1099 Ameriprise Financial Center, Minneapolis, MN, USA, 55474
Spun off from American Express in 2005, Ameriprise Financial has emerged as a major player in the U.S. market for asset and wealth management, with around $1.1 trillion in total assets under management and advisement at the end of 2020. Ameriprise has one of the largest branded advisor networks in the industry, and over 70% of the company's revenue comes from its asset and wealth management segments. Ameriprise has reduced its exposure to insurance with the sale of its auto and home insurance business in 2019 and discontinuing the sale of its proprietary fixed annuities in 2020. Around 90% of the company's pretax earnings are from the United States.
Executives
Smyth Gerard P. officer: EVP Technology and CIO 1099 AMERIPRISE FINANCIAL MINNEAPOLIS MN 55474
Woerner John Robert officer: Pres Ins & Chief Strat Officer AMERIPRISE FINANCIAL, INC. 707 SECOND AVENUE SOUTH MINNEAPOLIS MN 55474
Williams Christopher J director 650 FIFTH AVE 10TH FL NEW YORK NY 10019
Truscott William F officer: CEO, Global Asset Management AMERIPRISE FINANCIAL, INC. 50591 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Sweeney Joseph Edward officer: Pres-AWM Products & Services AMERIPRISE FINANCIAL, INC. 707 SECOND AVENUE SOUTH MINNEAPOLIS MN 55474
Moore Colin officer: EVP & Global CIO C/O PUTNAM LLC ONE POST OFFICE SQ BOSTON MA 02109
Sharpe Robert Francis Jr director AMERIPRISE FINANCIAL, INC. 50591 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Greenberg Lon R director 460 NORTH GULPH ROAD KING OF PRUSSIA PA 19406
Noddle Jeffrey director 11840 VALLEY VIEW ROAD EDEN PRAIRIE MN 55344
Walter W Edward director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: WALTER W EDWARD a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Neal Blixt Dianne director 714 GREEN VALLEY ROAD GREENSBORO NC 27408
Digeso Amy director C/O THE ESTEE LAUDER COMPANIES INC. 767 FIFTH AVENUE NEW YORK NY 10153
Shea Brian T director ONE PERSHING PLAZA 95 CHRISTOPHER COLUMBUS DRIVE JERSEY CITY NJ 07399
Hutt John R. officer: Sr Vice Pres and Controller 1099 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474
Thissen Karen Wilson officer: Executive VP and GC 1098 AMERIPRISE FINANCIAL CENTER MINNEAPOLIS MN 55474

Ameriprise Financial Headlines

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