Market Cap : 61.89 B | Enterprise Value : 71.48 B | PE Ratio : 42.10 | PB Ratio : 90.77 |
---|
NYSE:AON has been successfully added to your Stock Email Alerts list.
You can manage your stock email alerts here.
NYSE:AON has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Aon's Beneish M-Score or its related term are showing as below:
During the past 13 years, the highest Beneish M-Score of Aon was 10.07. The lowest was -37.64. And the median was -2.52.
The historical data trend for Aon'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.
For the Insurance Brokers subindustry, Aon'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.
For the Insurance industry and Financial Services sector, Aon's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Aon's Beneish M-Score falls into.
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 Aon 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 * 0.9682 | + | 0.528 * 1.0112 | + | 0.404 * 0.9547 | + | 0.892 * 1.0573 | + | 0.115 * 0.9379 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 1.481 | + | 4.679 * -0.02 | - | 0.327 * 1.1568 | |||||||
= | -2.71 |
* 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 $3,716 Mil. Revenue was 2983 + 3670 + 3080 + 2702 = $12,435 Mil. Gross Profit was 1344 + 1903 + 1524 + 867 = $5,638 Mil. Total Current Assets was $22,167 Mil. Total Assets was $34,720 Mil. Property, Plant and Equipment(Net PPE) was $1,261 Mil. Depreciation, Depletion and Amortization(DDA) was $299 Mil. Selling, General, & Admin. Expense(SGA) was $3,102 Mil. Total Current Liabilities was $21,077 Mil. Long-Term Debt & Capital Lease Obligation was $10,394 Mil. Net Income was 501 + 1023 + 863 + -900 = $1,487 Mil. Non Operating Income was 30 + 28 + 145 + 10 = $213 Mil. Cash Flow from Operations was 668 + 463 + 931 + -94 = $1,968 Mil. |
Total Receivables was $3,630 Mil. Revenue was 2886 + 3525 + 2965 + 2385 = $11,761 Mil. Gross Profit was 1258 + 1806 + 1330 + 998 = $5,392 Mil. Total Current Assets was $21,276 Mil. Total Assets was $34,580 Mil. Property, Plant and Equipment(Net PPE) was $1,524 Mil. Depreciation, Depletion and Amortization(DDA) was $334 Mil. Selling, General, & Admin. Expense(SGA) was $1,981 Mil. Total Current Liabilities was $18,927 Mil. Long-Term Debt & Capital Lease Obligation was $8,168 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) |
= | (3716 / 12435) | / | (3630 / 11761) | |
= | 0.29883394 | / | 0.30864722 | |
= | 0.9682 |
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) | |
= | (5392 / 11761) | / | (5638 / 12435) | |
= | 0.45846442 | / | 0.45339767 | |
= | 1.0112 |
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 - (22167 + 1261) / 34720) | / | (1 - (21276 + 1524) / 34580) | |
= | 0.32523041 | / | 0.34065934 | |
= | 0.9547 |
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 | |
= | 12435 | / | 11761 | |
= | 1.0573 |
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)) |
= | (334 / (334 + 1524)) | / | (299 / (299 + 1261)) | |
= | 0.17976319 | / | 0.19166667 | |
= | 0.9379 |
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) |
= | (3102 / 12435) | / | (1981 / 11761) | |
= | 0.24945718 | / | 0.16843806 | |
= | 1.481 |
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) |
= | ((10394 + 21077) / 34720) | / | ((8168 + 18927) / 34580) | |
= | 0.90642281 | / | 0.7835454 | |
= | 1.1568 |
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 | |
= | (1487 - 213 | - | 1968) | / | 34720 | |
= | -0.02 |
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.
Aon has a M-score of -2.71 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Aon's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Slyfield Jillian | officer: Chief Innovation Officer | 200 E RANDOLPH ST. CHICAGO IL 60601 |
Platt James | officer: Chief Operating Officer | THE LEADENHALL BUILDING 122 LEADENHALL ST. LONDON X0 EC3V 4AN |
Spruell Byron | director | 200 EAST RANDOLPH ST. CHICAGO IL 60601 |
Stevens Lisa | officer: Chief People Officer | 200 EAST RANDOLPH CHICAGO IL 60601 |
Weitz Andy | officer: Chief Marketing Officer | 200 EAST RANDOLPH ST. CHICAGO IL 60601 |
Zeidel Darren | officer: General Counsel | 200 EAST RANDOLPH ST. CHICAGO IL 60640 |
Campbell Jeffrey C | director | 4333 AMON CARTER BLVD FORT WORTH TX 76155 |
Neller Michael | officer: Principal Accounting Officer | 200 EAST RANDOLPH ST. CHICAGO IL 60601 |
Zern John | officer: CEO, Global Health & Benefits | 200 E. RANDOLPH ST. CHICAGO IL 60601 |
Grace Caroline | officer: CEO, Global Retirement & Inves | 200 E. RANDOLPH ST. CHICAGO IL 60601 |
Bruno John G | officer: Executive Vice President, CIO | |
Andersen Eric | officer: CEO, Aon Benfield | 200 EAST RANDOLPH ST. CHICAGO IL 60601 |
Cai Jin-yong | director | 200 EAST RANDOLPH ST. CHICAGO IL 60601 |
Goland Anthony R | officer: EVP and CHRO | C/O AON LAW DEPARTMENT 200 EAST RANDOLPH ST CHICAGO IL 60601 |
Leng James W | director | C/O AON PLC 8 DEVONSHIRE SQUARE LONDON X0 EC2M4PL |
From GuruFocus
By PRNewswire 01-10-2022
By PRNewswire 07-12-2021
Other Sources
By Zacks 2022-02-04
By Zacks 2022-03-08
By Zacks 2022-02-01
By Zacks 2022-03-02
By Zacks 2022-02-21
By Zacks 2022-03-08
By Zacks 2022-02-08
By Zacks 2021-12-07
By Seekingalpha 2021-12-08
By Zacks 2021-12-30
By Zacks 2022-03-18
By Zacks 2022-03-02
By Seekingalpha 2022-02-14
By Zacks 2021-12-01