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Intercontinental Exchange Beneish M-Score

: -2.64 (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 -2.64 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ICE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22   Med: -2.36   Max: 1.3
Current: -2.64

During the past 13 years, the highest Beneish M-Score of Intercontinental Exchange was 1.30. The lowest was -3.22. And the median was -2.36.


Intercontinental Exchange Beneish M-Score Historical Data

The historical data trend for Intercontinental Exchange'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.

Intercontinental Exchange 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 -2.32 -2.52 -2.48 -2.20 -2.73

Intercontinental Exchange 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 -2.36 -2.61 -2.73 -2.64 -2.64

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Intercontinental Exchange'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.

   

Intercontinental Exchange Beneish M-Score Distribution

For the Capital Markets industry and Financial Services sector, Intercontinental Exchange's Beneish M-Score distribution charts can be found below:

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



Intercontinental Exchange 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 Intercontinental Exchange 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 * 0.971+0.528 * 0.9603+0.404 * 0.6364+0.892 * 1.0861+0.115 * 0.9406
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9126+4.679 * -0.005-0.327 * 1.0775
=-2.64

* 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 $1,371 Mil.
Revenue was 2413 + 2459 + 2328 + 2277 = $9,477 Mil.
Gross Profit was 1290 + 1365 + 1300 + 1260 = $5,215 Mil.
Total Current Assets was $176,375 Mil.
Total Assets was $215,207 Mil.
Property, Plant and Equipment(Net PPE) was $1,703 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,013 Mil.
Selling, General, & Admin. Expense(SGA) was $447 Mil.
Total Current Liabilities was $169,422 Mil.
Long-Term Debt & Capital Lease Obligation was $18,376 Mil.
Net Income was 555 + 657 + 1527 + 633 = $3,372 Mil.
Non Operating Income was -30 + -67 + 1270 + 40 = $1,213 Mil.
Cash Flow from Operations was 969 + 756 + 993 + 523 = $3,241 Mil.
Total Receivables was $1,300 Mil.
Revenue was 2134 + 2429 + 2233 + 1930 = $8,726 Mil.
Gross Profit was 1177 + 1281 + 1171 + 982 = $4,611 Mil.
Total Current Assets was $96,066 Mil.
Total Assets was $134,190 Mil.
Property, Plant and Equipment(Net PPE) was $1,745 Mil.
Depreciation, Depletion and Amortization(DDA) was $943 Mil.
Selling, General, & Admin. Expense(SGA) was $451 Mil.
Total Current Liabilities was $94,250 Mil.
Long-Term Debt & Capital Lease Obligation was $14,422 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)
=(1371 / 9477) / (1300 / 8726)
=0.14466603 / 0.14898006
=0.971

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)
=(4611 / 8726) / (5215 / 9477)
=0.52842081 / 0.55027962
=0.9603

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 - (176375 + 1703) / 215207) / (1 - (96066 + 1745) / 134190)
=0.17252692 / 0.27110068
=0.6364

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
=9477 / 8726
=1.0861

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))
=(943 / (943 + 1745)) / (1013 / (1013 + 1703))
=0.35081845 / 0.37297496
=0.9406

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)
=(447 / 9477) / (451 / 8726)
=0.04716682 / 0.05168462
=0.9126

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)
=((18376 + 169422) / 215207) / ((14422 + 94250) / 134190)
=0.8726389 / 0.8098368
=1.0775

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
=(3372 - 1213 - 3241) / 215207
=-0.005

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.

Intercontinental Exchange has a M-score of -2.64 suggests that the company is unlikely to be a manipulator.


Intercontinental Exchange Beneish M-Score Related Terms

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Intercontinental Exchange Business Description

Intercontinental Exchange logo
Address
5660 New Northside Drive, Atlanta, GA, USA, 30328
Intercontinental Exchange is a vertically integrated operator of financial exchanges and provides ancillary data products. Though the company is probably best known for its ownership of the New York Stock Exchange, which it acquired in 2013, ICE operates a large derivatives exchange, too. The company's largest commodity futures product is the ICE Brent crude futures contract. In addition to the exchanges business, which is about 55% of net revenue, Intercontinental Exchange has used a series of acquisitions to create its mortgage technology business (18% of net revenue) and fixed-income and data services segment (27% of net revenue).
Executives
Edmonds Christopher Scott officer: Chief Development Officer INTERCONTINENTAL EXCHANGE, INC. 5660 NEW NORTHSIDE DR ATLANTA GA 30328
Foley Douglas officer: SVP, HR & Administration INTERCONTINENTAL EXCHANGE, INC. 5660 NEW NORTHSIDE DR ATLANTA GA 30328
Kapani Mayur officer: Chief Technology Officer INTERCONTINENTAL EXCHANGE, INC. 5660 NEW NORTHSIDE DR ATLANTA GA 30328
Tirinnanzi Martha A director INTERCONTINENTAL EXCHANGE, INC. 5660 NEW NORTHSIDE DR ATLANTA GA 30328
Gardiner Warren officer: Chief Financial Officer INTERCONTINENTAL EXCHANGE, INC. 5660 NEW NORTHSIDE DR ATLANTA GA 30328
Mulhern Mark F director 410 S. WILMINGTON STREET RALEIGH NC 27601
Cooper Shantella E. director 241 RALPH MCGILL BLVD., NW ATLANTA GA 30308
Silver Caroline Louise director INTERCONTINENTAL EXCHANGE, INC. 5660 NEW NORTHSIDE DR. ATLANTA GA 30328
Surdykowski Andrew J officer: General Counsel 5660 NEW NORTHSIDE DRIVE ATLANTA GA 30328
Martin Lynn C officer: President & COO, ICE Data Serv 5660 NEW NORTHSIDE DRIVE ATLANTA GA 30318
Namkung James W officer: Chief Accounting Officer C/O INTERCONTINENTAL EXCHANGE, INC. 5660 NEW NORTHSIDE DRIVE, NW ATLANTA GA 30318
Bowen Sharon director 5660 NEW NORTHSIDE DRIVE ATLANTA GA 30328
Wassersug Mark officer: Chief Operating Officer 5660 NEW NORTHSIDE DRIVE ATLANTA GA 30328
Jackson Benjamin officer: President C/O INTERCONTINENTAL EXCHANGE, INC. 5660 NEW NORTHSIDE DRIVE ATLANTA GA 30328
Cairns Ann director 2000 PURCHASE STREET PURCHASE NY 10577

Intercontinental Exchange Headlines

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