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SGBLY (Standard Bank Group) Beneish M-Score : -2.25 (As of Mar. 03, 2025)


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What is Standard Bank Group Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SGBLY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Med: -2.47   Max: -2.25
Current: -2.25

During the past 13 years, the highest Beneish M-Score of Standard Bank Group was -2.25. The lowest was -3.23. And the median was -2.47.


Standard Bank Group 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 Standard Bank Group 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 * 1.0004+0.892 * 1.1241+0.115 * 0.9999
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.772+4.679 * -0.000889-0.327 * 0.9941
=-2.33

* 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 $10,174 Mil.
Gross Profit was $10,174 Mil.
Total Current Assets was $0 Mil.
Total Assets was $164,535 Mil.
Property, Plant and Equipment(Net PPE) was $1,089 Mil.
Depreciation, Depletion and Amortization(DDA) was $392 Mil.
Selling, General, & Admin. Expense(SGA) was $245 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $7,333 Mil.
Net Income was $2,467 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $2,614 Mil.
Total Receivables was $0 Mil.
Revenue was $9,050 Mil.
Gross Profit was $9,050 Mil.
Total Current Assets was $0 Mil.
Total Assets was $166,805 Mil.
Property, Plant and Equipment(Net PPE) was $1,177 Mil.
Depreciation, Depletion and Amortization(DDA) was $423 Mil.
Selling, General, & Admin. Expense(SGA) was $282 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $7,479 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 / 10173.511) / (0 / 9050)
=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)
=(9050 / 9050) / (10173.511 / 10173.511)
=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 - (0 + 1089.369) / 164534.853) / (1 - (0 + 1177.083) / 166805.382)
=0.993379 / 0.992943
=1.0004

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
=10173.511 / 9050
=1.1241

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))
=(423.438 / (423.438 + 1177.083)) / (391.943 / (391.943 + 1089.369))
=0.264563 / 0.264592
=0.9999

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)
=(244.676 / 10173.511) / (281.944 / 9050)
=0.02405 / 0.031154
=0.772

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)
=((7333.251 + 0) / 164534.853) / ((7478.588 + 0) / 166805.382)
=0.04457 / 0.044834
=0.9941

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
=(2467.316 - 0 - 2613.563) / 164534.853
=-0.000889

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.

Standard Bank Group has a M-score of -2.33 suggests that the company is unlikely to be a manipulator.


Standard Bank Group Beneish M-Score Related Terms

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Standard Bank Group Business Description

Address
5 Simmonds Street, 9th Floor, Standard Bank Centre, Johannesburg, GT, ZAF, 2001
Standard Bank Group Ltd provides banking and other financial services. Its operating model is client-led and structured around its business units which are Personal & Private Banking (PPB), Business and Commercial Banking (BCB), Corporate and Investment Banking (CIB), and Insurance & Asset Management (IAM). It offers credit cards, mortgages, vehicle loans, insurance, and other lending and transactional products. The company generates nearly all its income in Africa.