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Chubb Beneish M-Score

: -2.48 (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 -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.04   Med: -2.57   Max: 10.53
Current: -2.48

During the past 13 years, the highest Beneish M-Score of Chubb was 10.53. The lowest was -3.04. And the median was -2.57.


Chubb Beneish M-Score Historical Data

The historical data trend for Chubb'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.

Chubb 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 -2.37 -2.48 -2.58 -2.58 -2.43

Chubb 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 -2.41 -2.43 -2.47 -2.48

Competitive Comparison

For the Insurance - Property & Casualty subindustry, Chubb'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.

   

Chubb Beneish M-Score Distribution

For the Insurance industry and Financial Services sector, Chubb's Beneish M-Score distribution charts can be found below:

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



Chubb 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 Chubb 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 * 1.0578+0.528 * 1+0.404 * 1.0254+0.892 * 1.0511+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0088+4.679 * -0.02-0.327 * 1.0384
=-2.48

* 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 $30,740 Mil.
Revenue was 9941 + 9669 + 10483 + 10845 = $40,938 Mil.
Gross Profit was 9941 + 9669 + 10483 + 10845 = $40,938 Mil.
Total Current Assets was $123,362 Mil.
Total Assets was $195,651 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $284 Mil.
Selling, General, & Admin. Expense(SGA) was $3,213 Mil.
Total Current Liabilities was $23,878 Mil.
Long-Term Debt & Capital Lease Obligation was $14,311 Mil.
Net Income was 1215 + 1974 + 2141 + 1833 = $7,163 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 2720 + 2440 + 2600 + 3322 = $11,082 Mil.
Total Receivables was $27,648 Mil.
Revenue was 9664 + 9971 + 9848 + 9464 = $38,947 Mil.
Gross Profit was 9664 + 9971 + 9848 + 9464 = $38,947 Mil.
Total Current Assets was $126,124 Mil.
Total Assets was $197,174 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $290 Mil.
Selling, General, & Admin. Expense(SGA) was $3,030 Mil.
Total Current Liabilities was $22,109 Mil.
Long-Term Debt & Capital Lease Obligation was $14,954 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)
=(30740 / 40938) / (27648 / 38947)
=0.75089159 / 0.7098878
=1.0578

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)
=(38947 / 38947) / (40938 / 40938)
=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 - (123362 + 0) / 195651) / (1 - (126124 + 0) / 197174)
=0.36947933 / 0.36034163
=1.0254

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
=40938 / 38947
=1.0511

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))
=(290 / (290 + 0)) / (284 / (284 + 0))
=1 / 1
=1

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)
=(3213 / 40938) / (3030 / 38947)
=0.07848454 / 0.07779803
=1.0088

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)
=((14311 + 23878) / 195651) / ((14954 + 22109) / 197174)
=0.19518939 / 0.18797103
=1.0384

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
=(7163 - 0 - 11082) / 195651
=-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.

Chubb has a M-score of -2.48 suggests that the company is unlikely to be a manipulator.


Chubb Business Description

Chubb logo
Traded in Other Exchanges
Address
Baerengasse 32, Zurich, CHE, CH-8001
ACE acquired Chubb in the first quarter of 2016 and assumed the Chubb name. The combination makes the new Chubb one of the largest domestic property and casualty insurers, with operations in 54 countries spanning commercial and personal P&C insurance, reinsurance, and life insurance.
Executives
Bonanno Kathleen director 3000 TANNERY WAY SANTA CLARA CA 95054
Enns Peter C. officer: Executive Vice President and* THE CHUBB BUILDING 17 WOODBOURNE AVENUE HAMILTON D0 HM 08
Tellez Luis director DESC, S.A. DE C.V PASEO DE LOS TAMARINDOS TORRE PISO 32 CUAJIMALPA O5 05120
Townsend Frances F director C/O BAKER BOTTS LLP THE WARNER, 1299 PENNSYLVANIA AVE., NW WASHINGTON DC 20004-2400
Hugin Robert J director C/O THE MEDICINES CO 8 CAMPUS DR PARSIPPANY NJ 07054
Hagan Annmarie T officer: Chief Accounting Officer TWO LIBERTY PLACE 1601 CHESTNUT STREET PHILADELPHIA PA 19192
Ortega Juan Luis officer: Executive Vice President* CHUBB AVENUE OF THE AMERICAS NEW YORK NY 10036
Andrade Juan C officer: Executive Vice President* THE HARTFORD ONE HARTFORD PLAZA HARTFORD CT 06155
Krump Paul J officer: Executive Vice President* C/O CHUBB & SON 15 MOUNTAIN VIEW RD P O BOX161 WARREN NJ 07061-1615
Kellner Lawrence W director 1600 SMITH ST. HQSEO HOUSTON TX 77002
Zimmerman James M director C/O FOSSIL GROUP, INC. 901 S. CENTRAL EXPRESSWAY RICHARDSON TX 75080
Cash James I director C/O WINSTAR COMMUNICATIONS INC 685 THIRD AVENUE NEW YORK NY 10017
Burke Sheila P director WELLPOINT, INC 120 MONUMENT CIRCLE INDIANAPOLIS IN 46240
Sidwell David H director MORGAN STANLEY 1585 BROADWAY NEW YORK NY 10036
Edwardson John A director P O BOX 66100-WHQLD CHICAGO IL 60666

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