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IHS Markit Beneish M-Score

: -2.69 (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 -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:INFO' s Beneish M-Score Range Over the Past 10 Years
Min: -2.96   Med: -2.59   Max: -0.39
Current: -2.69

-2.96
-0.39

During the past 13 years, the highest Beneish M-Score of IHS Markit was -0.39. The lowest was -2.96. And the median was -2.59.


IHS Markit Beneish M-Score Historical Data

The historical data trend for IHS Markit'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.

IHS Markit Annual Data
Trend Nov11 Nov12 Nov13 Nov14 Nov15 Nov16 Nov17 Nov18 Nov19 Nov20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.76 -2.53 -2.59 -2.53 -2.46

IHS Markit Quarterly Data
Nov16 Feb17 May17 Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21
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 -2.44 -2.46 -2.64 -2.65 -2.69

Competitive Comparison

For the Consulting Services subindustry, IHS Markit'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.

   

IHS Markit Beneish M-Score Distribution

For the Business Services industry and Industrials sector, IHS Markit's Beneish M-Score distribution charts can be found below:

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



IHS Markit 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 IHS Markit 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 * 0.9352+0.528 * 0.9866+0.404 * 0.9076+0.892 * 1.067+0.115 * 0.9359
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9571+4.679 * -0.0351-0.327 * 0.9991
=-2.69

* 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 (Aug21) TTM:Last Year (Aug20) TTM:
Accounts Receivable was $858 Mil.
Revenue was 1180.5 + 1181.4 + 1119.9 + 1107.2 = $4,589 Mil.
Gross Profit was 754.8 + 755.6 + 704.7 + 706.9 = $2,922 Mil.
Total Current Assets was $2,659 Mil.
Total Assets was $16,497 Mil.
Property, Plant and Equipment(Net PPE) was $953 Mil.
Depreciation, Depletion and Amortization(DDA) was $597 Mil.
Selling, General, & Admin. Expense(SGA) was $1,166 Mil.
Total Current Liabilities was $2,049 Mil.
Long-Term Debt & Capital Lease Obligation was $4,913 Mil.
Net Income was 161.3 + 159 + 149.3 + 151.1 = $621 Mil.
Non Operating Income was -26.9 + -41 + -14.1 + -93.5 = $-176 Mil.
Cash Flow from Operations was 420.7 + 372 + 244.5 + 338.3 = $1,376 Mil.
Accounts Receivable was $860 Mil.
Revenue was 1073.2 + 1026.6 + 1080.8 + 1120.4 = $4,301 Mil.
Gross Profit was 687.6 + 638.3 + 665 + 710.9 = $2,702 Mil.
Total Current Assets was $1,226 Mil.
Total Assets was $16,234 Mil.
Property, Plant and Equipment(Net PPE) was $1,037 Mil.
Depreciation, Depletion and Amortization(DDA) was $584 Mil.
Selling, General, & Admin. Expense(SGA) was $1,142 Mil.
Total Current Liabilities was $1,838 Mil.
Long-Term Debt & Capital Lease Obligation was $5,018 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)
=(857.8 / 4589) / (859.7 / 4301)
=0.18692526 / 0.19988375
=0.9352

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)
=(2701.8 / 4301) / (2922 / 4589)
=0.62817949 / 0.63674003
=0.9866

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 - (2659 + 952.8) / 16496.5) / (1 - (1226 + 1037.4) / 16233.6)
=0.78105659 / 0.86057313
=0.9076

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
=4589 / 4301
=1.067

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))
=(584.4 / (584.4 + 1037.4)) / (596.5 / (596.5 + 952.8))
=0.36034036 / 0.38501259
=0.9359

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)
=(1166.1 / 4589) / (1141.9 / 4301)
=0.25410765 / 0.2654964
=0.9571

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)
=((4912.8 + 2048.5) / 16496.5) / ((5018.1 + 1838.3) / 16233.6)
=0.42198648 / 0.42235856
=0.9991

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
=(620.7 - -175.5 - 1375.5) / 16496.5
=-0.0351

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.

IHS Markit has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.


IHS Markit Beneish M-Score Related Terms

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IHS Markit Business Description

IHS Markit logo
Industry
Industrials » Business Services NAICS : 561499 SIC : 7389
Traded in Other Exchanges
Address
25 Ropemaker Street, 4th Floor, Ropemaker Place, London, GBR, EC2Y 9LY
IHS Markit is a leading provider of data and analytics to corporate and sovereign clients across a wide variety of industries. Financial markets accounted for 42% of fiscal 2020 revenue, transportation 27%, resources (energy and chemicals) 20%, and CMS (consolidated markets) 11%. Approximately 60% of fiscal 2020 revenue came from the United States. IHS Markit has approximately 16,000 employees worldwide. About 74% of fiscal 2020 revenue was recurring and fixed, 14% recurring and variable, and 12% non-recurring. S&P Global has offered to acquire IHS Markit, with holders of the target firm set to receive 0.2838 shares of the combined entity (a little less than one third of the total), in a deal valued at $44 billion upon announcement.

IHS Markit Headlines

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