BrightSphere Investment Group (BrightSphere Investment Group) Beneish M-Score : -2.16 (As of Apr. 26, 2024)

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What is BrightSphere Investment Group Beneish M-Score?

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 -2.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSIG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.25 Med: -2.48 Max: 3.22
Current: -2.16

During the past 13 years, the highest Beneish M-Score of BrightSphere Investment Group was 3.22. The lowest was -3.25. And the median was -2.48.

BrightSphere Investment Group Beneish M-Score Historical Data

The historical data trend for BrightSphere Investment Group'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.

BrightSphere Investment Group Beneish M-Score Chart

BrightSphere Investment Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.31

-3.25

3.22

-2.92

-2.16

BrightSphere Investment Group Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.92	-2.85	-2.78	-2.41	-2.16

Competitive Comparison of BrightSphere Investment Group's Beneish M-Score

For the Asset Management subindustry, BrightSphere Investment Group'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.

BrightSphere Investment Group's Beneish M-Score Distribution in the Asset Management Industry

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

* The bar in red indicates where BrightSphere Investment Group's Beneish M-Score falls into.

BrightSphere Investment Group 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 BrightSphere Investment Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1476

0.528 * 1.2793

0.404 * 1.1095

0.892 * 1.0225

0.115 * 1.0112

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1361

4.679 * -0.010631

0.327 * 0.855

-2.16

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $146.1 Mil.
Revenue was 131.2 + 107.3 + 96.3 + 91.8 = $426.6 Mil.
Gross Profit was 63.8 + 53.5 + 46.6 + 42 = $205.9 Mil.
Total Current Assets was $293.7 Mil.
Total Assets was $611.4 Mil.
Property, Plant and Equipment(Net PPE) was $101.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.3 Mil.
Selling, General, & Admin. Expense(SGA) was $82.6 Mil.
Total Current Liabilities was $41.9 Mil.
Long-Term Debt & Capital Lease Obligation was $346.3 Mil.
Net Income was 22.8 + 19.6 + 11.4 + 12 = $65.8 Mil.
Non Operating Income was 2 + 0.4 + 0.5 + 1.1 = $4.0 Mil.
Cash Flow from Operations was 42.7 + 21.2 + 39.3 + -34.9 = $68.3 Mil.

Total Receivables was $124.5 Mil.
Revenue was 122.7 + 86.8 + 95.5 + 112.2 = $417.2 Mil.
Gross Profit was 71.8 + 51.9 + 68.5 + 65.4 = $257.6 Mil.
Total Current Assets was $245.7 Mil.
Total Assets was $518.7 Mil.
Property, Plant and Equipment(Net PPE) was $107.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.6 Mil.
Selling, General, & Admin. Expense(SGA) was $71.1 Mil.
Total Current Liabilities was $35.9 Mil.
Long-Term Debt & Capital Lease Obligation was $349.3 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)
	=	(146.1 / 426.6)	/	(124.5 / 417.2)
	=	0.342475	/	0.298418
	=	1.1476

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)
	=	(257.6 / 417.2)	/	(205.9 / 426.6)
	=	0.61745	/	0.482654
	=	1.2793

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 - (293.7 + 101.4) / 611.4)	/	(1 - (245.7 + 107.6) / 518.7)
	=	0.353778	/	0.318874
	=	1.1095

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
	=	426.6	/	417.2
	=	1.0225

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))
	=	(18.6 / (18.6 + 107.6))	/	(17.3 / (17.3 + 101.4))
	=	0.147385	/	0.145746
	=	1.0112

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)
	=	(82.6 / 426.6)	/	(71.1 / 417.2)
	=	0.193624	/	0.170422
	=	1.1361

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)
	=	((346.3 + 41.9) / 611.4)	/	((349.3 + 35.9) / 518.7)
	=	0.634936	/	0.742626
	=	0.855

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
	=	(65.8 - 4	-	68.3)	/	611.4
	=	-0.010631

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.

BrightSphere Investment Group has a M-score of -2.16 suggests that the company is unlikely to be a manipulator.

BrightSphere Investment Group Beneish M-Score Related Terms

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BrightSphere Investment Group (BrightSphere Investment Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » BrightSphere Investment Group Inc (NYSE:BSIG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

2B9:Germany

Address

200 State Street, 13th Floor, Boston, MA, USA, 02109

Website

https://www.bsig.com

BrightSphere Investment Group Inc is a diversified, multi-boutique asset management company. The company's diverse affiliates offer alpha-generating investment products to investors around the world. Its reportable segment includes Quant and Solutions, which comprises of versatile, tailored strategies that leverage data and technology in a computational, factor-based investment process across a range of asset classes in developed and emerging markets, including non-U.S. and small-cap equities, as well as managed volatility, ESG, multi-asset, equity alternatives, and long/short strategies.. Its affiliates offer products in the U.S, international and emerging markets equities; U.S. fixed income; and alternative investments, including timber and secondary Funds.

Executives

Richard Jonathan Hart	officer: Chief Legal Officer	200 CLARENDON STREET, 53RD FLOOR, BOSTON MA 02116
Christina Wiater	officer: Principal Accounting Officer	200 CLARENDON STREET, 53RD FLOOR, BOSTON MA 02116
Suren Rana	director, officer: President and CEO	245 PARK AVENUE, 40TH FLOOR, NEW YORK NY 10167
Paulson & Co. Inc.	10 percent owner	1133 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10036
John Paulson	director, 10 percent owner	1133 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10036
Daniel K. Mahoney	officer: Head of Finance/PAO	C/O OLD MUTUAL ASSET MANAGEMENT, 200 CLARENDON STREET, BOSTON MA 02116
Guang Yang	director, officer: President and CEO	850 THIRD AVENUE, 16TH FLOOR, NEW YORK NY 10022
Robert J Chersi	director	C/O OMAM INC, 200 CLARENDON STREET, 53RD FLOOR, BOSTON MA 02116
Maliz E Beams	director	C/O PORT FINANCIAL CORP, 1380 SOLDIERS FIELD RD, BRIGHTON MA 02135
Barbara Trebbi	director	C/O OMAM INC., 200 CLARENDON STREET, 53RD FLOOR, BOSTON MA 02116
Reginald Love	director	C/O BRIGHTSPHERE INC., 200 CLARENDON STREET, BOSTON MA 02116
Andrew D Kim	director	1133 AVENUE OF THE AMERICAS, 33RD FLOOR, NEW YORK NY 10036