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STTPC.CL.PFD (State Street) Beneish M-Score : -2.19 (As of Jun. 20, 2025)


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What is State Street 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 -2.19 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STTpC.CL.PFD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.35   Med: -2.49   Max: 1.82
Current: -2.19

During the past 13 years, the highest Beneish M-Score of State Street was 1.82. The lowest was -3.35. And the median was -2.49.


State Street 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 State Street 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 * 1.0192+0.528 * 1+0.404 * 1.0001+0.892 * 1.0904+0.115 * 1.6171
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.956+4.679 * 0.034447-0.327 * 1.1412
=-2.19

* 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 (Mar25) TTM:Last Year (Mar24) TTM:
Total Receivables was $5,891.00 Mil.
Revenue was 3284 + 3412 + 3178 + 3191 = $13,065.00 Mil.
Gross Profit was 3284 + 3412 + 3178 + 3191 = $13,065.00 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $372,693.00 Mil.
Property, Plant and Equipment(Net PPE) was $3,610.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $512.00 Mil.
Selling, General, & Admin. Expense(SGA) was $4,864.00 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $24,846.00 Mil.
Net Income was 644 + 783 + 730 + 711 = $2,868.00 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 2396 + -7430 + 2708 + -7644 = $-9,970.00 Mil.
Total Receivables was $5,301.00 Mil.
Revenue was 3138 + 3043 + 2691 + 3110 = $11,982.00 Mil.
Gross Profit was 3138 + 3043 + 2691 + 3110 = $11,982.00 Mil.
Total Current Assets was $0.00 Mil.
Total Assets was $338,003.00 Mil.
Property, Plant and Equipment(Net PPE) was $3,310.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $832.00 Mil.
Selling, General, & Admin. Expense(SGA) was $4,666.00 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $19,746.00 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)
=(5891 / 13065) / (5301 / 11982)
=0.450899 / 0.442414
=1.0192

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)
=(11982 / 11982) / (13065 / 13065)
=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 + 3610) / 372693) / (1 - (0 + 3310) / 338003)
=0.990314 / 0.990207
=1.0001

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
=13065 / 11982
=1.0904

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))
=(832 / (832 + 3310)) / (512 / (512 + 3610))
=0.200869 / 0.124212
=1.6171

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)
=(4864 / 13065) / (4666 / 11982)
=0.372292 / 0.389417
=0.956

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)
=((24846 + 0) / 372693) / ((19746 + 0) / 338003)
=0.066666 / 0.05842
=1.1412

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
=(2868 - 0 - -9970) / 372693
=0.034447

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.

State Street has a M-score of -2.19 suggests that the company is unlikely to be a manipulator.


State Street Beneish M-Score Related Terms

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State Street Business Description

Address
One Congress Street, Boston, MA, USA, 02114
State Street is a leading provider of financial services, including investment servicing, investment management, and investment research and trading. With approximately $47 trillion in assets under custody and administration and $4.7 trillion assets under management as of Dec. 31, 2024, State Street operates globally in more than 100 geographic markets and employs about 53,000 worldwide.