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Moody's Beneish M-Score

: -2.55 (As of Today)
View and export this data going back to 1996. 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.

Good Sign:

Beneish M-Score -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:MCO' s Beneish M-Score Range Over the Past 10 Years
Min: -4.03   Med: -2.55   Max: -0.49
Current: -2.55

-4.03
-0.49

During the past 13 years, the highest Beneish M-Score of Moody's was -0.49. The lowest was -4.03. And the median was -2.55.


Moody's Beneish M-Score Historical Data

The historical data trend for Moody's'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.

Moody's 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 -2.56 -1.70 -2.46 -2.41 -2.59

Moody's Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -2.45 -2.46 -2.59 -2.57 -2.55

Competitive Comparison

For the Financial Data & Stock Exchanges subindustry, Moody's'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.

   

Moody's Beneish M-Score Distribution

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

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



Moody's 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 Moody's 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 * 0.9328+0.528 * 0.9909+0.404 * 0.9779+0.892 * 1.1156+0.115 * 0.8258
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9125+4.679 * -0.0263-0.327 * 0.9127
=-2.55

* 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 $1,458 Mil.
Revenue was 1553 + 1600 + 1290 + 1356 = $5,799 Mil.
Gross Profit was 1188 + 1207 + 881 + 992 = $4,268 Mil.
Total Current Assets was $4,734 Mil.
Total Assets was $12,552 Mil.
Property, Plant and Equipment(Net PPE) was $639 Mil.
Depreciation, Depletion and Amortization(DDA) was $232 Mil.
Selling, General, & Admin. Expense(SGA) was $1,241 Mil.
Total Current Liabilities was $2,050 Mil.
Long-Term Debt & Capital Lease Obligation was $6,741 Mil.
Net Income was 577 + 736 + 314 + 467 = $2,094 Mil.
Non Operating Income was 6 + 14 + -22 + -13 = $-15 Mil.
Cash Flow from Operations was 594 + 676 + 658 + 511 = $2,439 Mil.
Accounts Receivable was $1,401 Mil.
Revenue was 1435 + 1290 + 1233 + 1240 = $5,198 Mil.
Gross Profit was 1073 + 950 + 878 + 890 = $3,791 Mil.
Total Current Assets was $3,963 Mil.
Total Assets was $11,298 Mil.
Property, Plant and Equipment(Net PPE) was $727 Mil.
Depreciation, Depletion and Amortization(DDA) was $205 Mil.
Selling, General, & Admin. Expense(SGA) was $1,219 Mil.
Total Current Liabilities was $1,886 Mil.
Long-Term Debt & Capital Lease Obligation was $6,784 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)
=(1458 / 5799) / (1401 / 5198)
=0.25142266 / 0.26952674
=0.9328

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)
=(3791 / 5198) / (4268 / 5799)
=0.72931897 / 0.73598896
=0.9909

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 - (4734 + 639) / 12552) / (1 - (3963 + 727) / 11298)
=0.57194073 / 0.58488228
=0.9779

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
=5799 / 5198
=1.1156

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))
=(205 / (205 + 727)) / (232 / (232 + 639))
=0.21995708 / 0.26636051
=0.8258

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)
=(1241 / 5799) / (1219 / 5198)
=0.21400241 / 0.23451327
=0.9125

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)
=((6741 + 2050) / 12552) / ((6784 + 1886) / 11298)
=0.70036648 / 0.76739246
=0.9127

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
=(2094 - -15 - 2439) / 12552
=-0.0263

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.

Moody's has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.


Moody's Business Description

Moody's logo
Industry
Financial Services » Capital Markets NAICS : 523210 SIC : 7323
Address
7 World Trade Center at 250 Greenwich Street, New York, NY, USA, 10007
Moody's (along with S&P Ratings) is a leading provider of credit ratings on fixed income securities. Moody's ratings segment, known as Moody's Investors Service or MIS, includes corporates, structured finance, financial institutions, and public finance ratings. MIS represents a majority of the firm's revenue and profits. Moody's other segment is Moody's Analytics and consists of Research, Data, and Analytics or RD&A and Enterprise Risk Solutions or ERS. RD&A's products include credit research, quantitative credit scores, economic research, business intelligence, know your customer (KYC) tools, commercial real estate data and analytical tools, and training services. ERS includes risk management software solutions to financial institutions.
Executives
Bermudez Jorge A. director CORPORATE LAW DEPT., CITIGROUP INC. 425 PARK AVENUE NEW YORK NY 10043
Esperdy Therese director 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Mckinnell Henry A director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Seidman Leslie director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Van Saun Bruce director CITIZENS FINANCIAL GROUP, INC. 600 WASHINGTON BLVD STAMFORD CT 06901
Forlenza Vincent A director C/O BECTON DICKERSON & CO 1 BECTON DR FRANKLIN LAKES NJ 07417
Anderson Basil director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ANDERSON BASIL 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;}
Mcdaniel Raymond W director, officer: President and CEO 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Goggins John J officer: EVP and General Counsel 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Kaye Mark officer: SVP & Chief Financial Officer 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007
Fauber Robert officer: Chief Operating Officer 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Sullivan Caroline officer: SVP-Corporate Controller 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Hughes Melanie officer: SVP & Chief HR Officer 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Hill Kathryn director 7 WORLD TRADE CENTER 250 GREENWICH STREET NEW YORK NY 10007
Zalm Gerrit director 7 WORLD TRADE CENTER, 250 GREENWICH ST NEW YORK NY 10007

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