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American Express Co 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 American Express Co's Beneish M-Score or its related term are showing as below:

AXP' s Beneish M-Score Range Over the Past 10 Years
Min: -5.27   Med: -2.59   Max: 0.26
Current: -2.41

During the past 13 years, the highest Beneish M-Score of American Express Co was 0.26. The lowest was -5.27. And the median was -2.59.


American Express Co Beneish M-Score Historical Data

The historical data trend for American Express Co'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.

American Express Co 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 -2.79 -3.33 -2.55 -2.72 -2.59

American Express Co 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 -2.57 -2.49 -2.59 -2.30 -2.41

Competitive Comparison

For the Credit Services subindustry, American Express Co'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.

   

American Express Co Beneish M-Score Distribution

For the Credit Services industry and Financial Services sector, American Express Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where American Express Co's Beneish M-Score falls into.



American Express Co 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 American Express Co 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+0.528 * 1+0.404 * 1.1122+0.892 * 1.2668+0.115 * 1.0355
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9454+4.679 * -0.0473-0.327 * 1.0022
=-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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $0 Mil.
Revenue was 13385 + 11724 + 12139 + 11070 = $48,318 Mil.
Gross Profit was 13385 + 11724 + 12139 + 11070 = $48,318 Mil.
Total Current Assets was $27,143 Mil.
Total Assets was $205,298 Mil.
Property, Plant and Equipment(Net PPE) was $5,093 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,656 Mil.
Selling, General, & Admin. Expense(SGA) was $14,415 Mil.
Total Current Liabilities was $13,355 Mil.
Long-Term Debt & Capital Lease Obligation was $40,495 Mil.
Net Income was 1964 + 2099 + 1719 + 1826 = $7,608 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 4259 + 3880 + 5008 + 4172 = $17,319 Mil.
Total Receivables was $0 Mil.
Revenue was 10491 + 9448 + 9387 + 8817 = $38,143 Mil.
Gross Profit was 10491 + 9448 + 9387 + 8817 = $38,143 Mil.
Total Current Assets was $40,371 Mil.
Total Assets was $186,973 Mil.
Property, Plant and Equipment(Net PPE) was $4,891 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,666 Mil.
Selling, General, & Admin. Expense(SGA) was $12,037 Mil.
Total Current Liabilities was $11,572 Mil.
Long-Term Debt & Capital Lease Obligation was $37,363 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)
=(0 / 48318) / (0 / 38143)
=0 / 0
=1

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)
=(38143 / 38143) / (48318 / 48318)
=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 - (27143 + 5093) / 205298) / (1 - (40371 + 4891) / 186973)
=0.84297947 / 0.75792227
=1.1122

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
=48318 / 38143
=1.2668

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))
=(1666 / (1666 + 4891)) / (1656 / (1656 + 5093))
=0.25407961 / 0.24536968
=1.0355

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)
=(14415 / 48318) / (12037 / 38143)
=0.29833602 / 0.3155756
=0.9454

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)
=((40495 + 13355) / 205298) / ((37363 + 11572) / 186973)
=0.26230163 / 0.26172228
=1.0022

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
=(7608 - 0 - 17319) / 205298
=-0.0473

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.

American Express Co has a M-score of -2.41 suggests that the company is unlikely to be a manipulator.


American Express Co Beneish M-Score Related Terms

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American Express Co Business Description

American Express Co logo
Address
200 Vesey Street, New York, NY, USA, 10285
American Express is a global financial institution, operating in about 130 countries, that provides consumers and businesses charge and credit card payment products. The company also operates a highly profitable merchant payment network. Since 2018, it has operated in three segments: global consumer services, global commercial services, and global merchant and network services. In addition to payment products, the company's commercial business offers expense management tools, consulting services, and business loans.
Executives
Radhakrishnan Ravikumar officer: Chief Information Officer 200 VESEY STREET NEW YORK NY 10285
Nigro David officer: Chief Risk Officer 200 VESEY STREET NEW YORK NY 10285-5001
Pickrum Lisa W director 5900 RYLAND DRIVE BETHESDA MD 20817
Baltimore Thomas J Jr director PARK HOTELS & RESORTS INC. 1775 TYSONS BLVD, 7TH FLOOR TYSONS VA 22102
Phillips Jr Charles E director 113 WEST 88TH STREET NEW YORK NY 10024
Lieberman Quinn Jessica officer: Controller 200 VESEY STREET NEW YORK NY 10285
Parkhill Karen L director 1717 MAIN STREET, MC 6402 DALLAS TX 75201
Pike Lynn A director 200 VESEY STREET NEW YORK NY 10285
Skyler Jennifer officer: Chief Corp. Affairs Officer 200 VESEY STREET NEW YORK NY 10285
Joabar Raymond officer: CRO and Pres., GRBC 200 VESEY STREET NEW YORK NY 10285
Herena Monique officer: Chief Human Resources Officer 225 LIBERTY STREET NEW YORK NY 10286
Marrs Anna officer: Pres., Global Comm. Services 200 VESEY STREET 01-49-13 NEW YORK NY 10285
Vitale Gabrielle officer: Interim CRO and Pres, GRBC Grp 200 VESEY STREET NEW YORK NY 10285
Petrino Richard officer: EVP - Corporate Controller 200 VESEY STREET NEW YORK NY 10285
Young Christopher David director C/O MICROSOFT CORPORATION ONE MICROSOFT WAY REDMOND WA 98052-6399

American Express Co Headlines

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