Banco do Brasil BB Brasil 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 Banco do Brasil BB Brasil 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 * 1.0113 | + | 0.892 * 1.1903 | + | 0.115 * 0.8794 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9238 | + | 4.679 * 0.00947 | - | 0.327 * 0.881 |
| = | -2.22 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $0 Mil.
Revenue was 10011.75 + 6680.256 + 6356.032 + 5782.551 = $28,831 Mil.
Gross Profit was 10011.75 + 6680.256 + 6356.032 + 5782.551 = $28,831 Mil.
Total Current Assets was $32,147 Mil.
Total Assets was $443,381 Mil.
Property, Plant and Equipment(Net PPE) was $2,056 Mil.
Depreciation, Depletion and Amortization(DDA) was $803 Mil.
Selling, General, & Admin. Expense(SGA) was $1,831 Mil.
Total Current Liabilities was $13,695 Mil.
Long-Term Debt & Capital Lease Obligation was $28,178 Mil.
Net Income was 2189.842 + 1626.958 + 1721.218 + 1575.585 = $7,114 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 5853.67 + -2447.742 + 2030.888 + -2522.088 = $2,915 Mil.
|
Total Receivables was $0 Mil.
Revenue was 8330.524 + 5610.922 + 4884.502 + 5395.417 = $24,221 Mil.
Gross Profit was 8330.524 + 5610.922 + 4884.502 + 5395.417 = $24,221 Mil.
Total Current Assets was $32,158 Mil.
Total Assets was $386,891 Mil.
Property, Plant and Equipment(Net PPE) was $1,683 Mil.
Depreciation, Depletion and Amortization(DDA) was $552 Mil.
Selling, General, & Admin. Expense(SGA) was $1,665 Mil.
Total Current Liabilities was $11,884 Mil.
Long-Term Debt & Capital Lease Obligation was $29,588 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) |
| = | (0 / 28830.589) | / | (0 / 24221.365) |
| = | 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) |
| = | (24221.365 / 24221.365) | / | (28830.589 / 28830.589) |
| = | 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 - (32146.577 + 2055.654) / 443381.359) | / | (1 - (32158.158 + 1682.602) / 386891.136) |
| = | 0.92286 | / | 0.912532 |
| | = | 1.0113 |
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 |
| = | 28830.589 | / | 24221.365 |
| | = | 1.1903 |
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)) |
| = | (551.78 / (551.78 + 1682.602)) | / | (802.622 / (802.622 + 2055.654)) |
| = | 0.24695 | / | 0.280806 |
| | = | 0.8794 |
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) |
| = | (1830.637 / 28830.589) | / | (1664.792 / 24221.365) |
| = | 0.063496 | / | 0.068732 |
| | = | 0.9238 |
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) |
| = | ((28178.427 + 13695.115) / 443381.359) | / | ((29587.736 + 11884.263) / 386891.136) |
| = | 0.094441 | / | 0.107193 |
| | = | 0.881 |
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 |
| = | (7113.603 - 0 | - | 2914.728) | / | 443381.359 |
| | = | 0.00947 |
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.
Banco do Brasil BB Brasil has a M-score of -2.22 suggests that the company is unlikely to be a manipulator.
Banco do Brasil BB Brasil (Banco do Brasil BB Brasil) Business Description
Traded in Other Exchanges
Address
Setor de Autarquias Norte, Quadra 5, Lote B, Edificio Banco do Brasil, Brasilia, DF, BRA, 70040-912
Banco do Brasil SA BB Brasil is a Brazilian financial services company present in several countries. The business segments are Banking, Investments, Fund Management, Insurance, pension fund & capitalization, Payment methods, and Other segments. Banco do Brasil serves retail clients (small and midsize enterprises and individuals), wholesale clients (corporations), and public institutions. The bank has subsidiaries/ business units/offices in Argentina, Dubai, the United Kingdom, Spain, Mexico, the United States, France, China, and Japan, among other locations. The products and services portfolio includes accounts, Loans, cards, financing, and others.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
BDORY has been successfully added to your