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Aon Beneish M-Score

: -2.71 (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 -2.71 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:

AON' s Beneish M-Score Range Over the Past 10 Years
Min: -37.64   Med: -2.52   Max: 10.07
Current: -2.71

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.


Aon Beneish M-Score Historical Data

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.

* Premium members only.

Aon 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 -2.28 -2.56 -2.37 -2.60 -2.72

Aon 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 -2.47 -2.61 -2.72 -2.71 -2.71

Competitive Comparison

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.

   

Aon Beneish M-Score Distribution

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.



Aon 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 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.


Aon Business Description

Aon logo
Traded in Other Exchanges
Address
James Joyce Street, Metropolitan Building, Dublin 1, IRL, D01 K0Y8
Aon is a leading global provider of insurance and reinsurance brokerage and human resource solutions. Its operations are tilted toward its brokerage operations. Headquartered in London, Aon has about 50,000 employees and operations in 120 countries around the world.
Executives
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

Aon Headlines

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