>
Switch to:

First Horizon Beneish M-Score

: -1.69 (As of Today)
View and export this data going back to 1973. Start your Free Trial

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.

Warning Sign:

Beneish M-Score -1.69 higher than -1.78, which implies that the company might have manipulated its financial results.

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

NYSE:FHN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.79   Med: -2.47   Max: 0.45
Current: -1.69

-3.79
0.45

During the past 13 years, the highest Beneish M-Score of First Horizon was 0.45. The lowest was -3.79. And the median was -2.47.


First Horizon Beneish M-Score Historical Data

The historical data trend for First Horizon'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.

First Horizon Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.27 -2.81 -1.82 -3.29 -1.62

First Horizon Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -1.71 -1.62 -1.65 -1.69 -

Competitive Comparison

For the Banks - Regional subindustry, First Horizon'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.

   

First Horizon Beneish M-Score Distribution

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

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



First Horizon 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 First Horizon 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 * 0.9127+0.892 * 1.9314+0.115 * 0.8989
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8902+4.679 * -0.0042-0.327 * 0.991
=-1.69

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $0 Mil.
Revenue was 763 + 790 + 792.521 + 1339.654 = $3,685 Mil.
Gross Profit was 763 + 790 + 792.521 + 1339.654 = $3,685 Mil.
Total Current Assets was $23,142 Mil.
Total Assets was $87,908 Mil.
Property, Plant and Equipment(Net PPE) was $714 Mil.
Depreciation, Depletion and Amortization(DDA) was $119 Mil.
Selling, General, & Admin. Expense(SGA) was $1,268 Mil.
Total Current Liabilities was $2,246 Mil.
Long-Term Debt & Capital Lease Obligation was $1,672 Mil.
Net Income was 308 + 233 + 241.505 + 536.061 = $1,319 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -49 + 1064 + 444.897 + 230.103 = $1,690 Mil.
Accounts Receivable was $0 Mil.
Revenue was 499 + 465 + 483.268 + 460.777 = $1,908 Mil.
Gross Profit was 499 + 465 + 483.268 + 460.777 = $1,908 Mil.
Total Current Assets was $9,362 Mil.
Total Assets was $48,645 Mil.
Property, Plant and Equipment(Net PPE) was $448 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General, & Admin. Expense(SGA) was $737 Mil.
Total Current Liabilities was $155 Mil.
Long-Term Debt & Capital Lease Obligation was $2,032 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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 / 3685.175) / (0 / 1908.045)
=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)
=(1908.045 / 1908.045) / (3685.175 / 3685.175)
=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 - (23142 + 714) / 87908) / (1 - (9361.735 + 448.028) / 48644.659)
=0.72862538 / 0.79833833
=0.9127

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
=3685.175 / 1908.045
=1.9314

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))
=(66.014 / (66.014 + 448.028)) / (119 / (119 + 714))
=0.12842141 / 0.14285714
=0.8989

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)
=(1267.926 / 3685.175) / (737.479 / 1908.045)
=0.34406127 / 0.38651028
=0.8902

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)
=((1672 + 2246) / 87908) / ((2032.476 + 155.318) / 48644.659)
=0.04456932 / 0.04497501
=0.991

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
=(1318.566 - 0 - 1690) / 87908
=-0.0042

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.

First Horizon has a M-score of -1.69 signals that the company is likely to be a manipulator.


First Horizon Beneish M-Score Related Terms

Thank you for viewing the detailed overview of First Horizon's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


First Horizon Business Description

First Horizon logo
Industry
Financial Services » Banks NAICS : 522110 SIC : 6021
Address
165 Madison Avenue, Memphis, TN, USA, 38103
First Horizon Corp is the parent company of First Tennessee Bank, a prominent regional bank with about 200 branches around Tennessee. The regional bank is responsible for roughly 65% of its revenue, while capital markets make a 25% contribution. The remainder is split between the firm's non-strategic (wind-down) and corporate operations. First Horizon concentrates on offering a variety of banking products mainly in its home state, where it has the second- largest deposit franchise with a 13% deposit market share.
Executives
Casbon John N director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Barton Harry V Jr director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Maples Ricky E director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Kemp Sr James Michael director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Reed Colin V director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: REED COLIN V a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Subramaniam Rajesh director 165 MADISON AVE MEMPHIS TN 38103
Palmer Vicki R director PO BOX 723040 ATLANTA GA 30339
Stewart Cecelia D. director 8410 W. BRYN MAWR, SUITE 700 CHICAGO IL 60631
Compton John C director 700 ANDERSON HILL ROAD PURCHASE NY 10577
Fenstermaker William H director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Davidson Wendy P director 2210 WEST OAKLAWN DRIVE SPRINGDALE AR 72762
Shea E Stewart Iii director 200 WEST CONGRESS STREET LAFAYETTE LA 70501
Sugranes Rosa director 2975 N.W. 77TH AVE DORAL FL 33132
Burdick Kenneth A director 6705 ROCKLEDGE DR SUITE 900 BETHESDA MD 20817
Taylor R Eugene director BANK OF AMERICA CORP 100 NORTH TRYON ST NC1-007-57-01 CHARLOTTE NC 28255

First Horizon Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)