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.
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Aon Annual Data
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|
Trend |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
| Beneish M-Score |
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|
|
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-2.28 |
-2.56 |
-2.37 |
-2.60 |
-2.72 |
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Aon Quarterly Data
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Sep17 |
Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
| Beneish M-Score |
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|
|
|
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|
|
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|
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-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.
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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.
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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.
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