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T. Rowe Price Group (WBO:TROW) Beneish M-Score : -2.29 (As of Apr. 26, 2024)


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What is T. Rowe Price Group Beneish M-Score?

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 -2.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for T. Rowe Price Group's Beneish M-Score or its related term are showing as below:

WBO:TROW' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.34   Max: -1.83
Current: -2.29

During the past 13 years, the highest Beneish M-Score of T. Rowe Price Group was -1.83. The lowest was -2.97. And the median was -2.34.


T. Rowe Price Group Beneish M-Score Historical Data

The historical data trend for T. Rowe Price Group'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.

T. Rowe Price Group Beneish M-Score Chart

T. Rowe Price Group Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.34 -2.19 -2.65 -2.97 -2.29

T. Rowe Price Group Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial 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 -2.97 -2.76 -2.57 -2.37 -2.29

Competitive Comparison of T. Rowe Price Group's Beneish M-Score

For the Asset Management subindustry, T. Rowe Price Group'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.


T. Rowe Price Group's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, T. Rowe Price Group's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where T. Rowe Price Group's Beneish M-Score falls into.



T. Rowe Price 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 T. Rowe Price 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 * 1.0783+0.528 * 1.1057+0.404 * 0.9778+0.892 * 0.972+0.115 * 1.2174
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0922+4.679 * 0.0092-0.327 * 0.9505
=-2.32

* 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 €741 Mil.
Revenue was 1505.714 + 1565.446 + 1486.215 + 1436.118 = €5,993 Mil.
Gross Profit was 699.488 + 830.463 + 753.63 + 691.627 = €2,975 Mil.
Total Current Assets was €2,636 Mil.
Total Assets was €11,260 Mil.
Property, Plant and Equipment(Net PPE) was €961 Mil.
Depreciation, Depletion and Amortization(DDA) was €444 Mil.
Selling, General, & Admin. Expense(SGA) was €1,083 Mil.
Total Current Liabilities was €436 Mil.
Long-Term Debt & Capital Lease Obligation was €283 Mil.
Net Income was 401.279 + 424.648 + 439.717 + 393.681 = €1,659 Mil.
Non Operating Income was 209.259 + -33.451 + 93.038 + 148.506 = €417 Mil.
Cash Flow from Operations was -144.336 + 440.39 + 364.4 + 477.928 = €1,138 Mil.
Total Receivables was €707 Mil.
Revenue was 1438.845 + 1604.082 + 1431.298 + 1691.604 = €6,166 Mil.
Gross Profit was 659.573 + 863.146 + 849.13 + 1012.511 = €3,384 Mil.
Total Current Assets was €2,364 Mil.
Total Assets was €10,991 Mil.
Property, Plant and Equipment(Net PPE) was €977 Mil.
Depreciation, Depletion and Amortization(DDA) was €612 Mil.
Selling, General, & Admin. Expense(SGA) was €1,020 Mil.
Total Current Liabilities was €427 Mil.
Long-Term Debt & Capital Lease Obligation was €311 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)
=(740.844 / 5993.493) / (706.773 / 6165.829)
=0.123608 / 0.114627
=1.0783

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)
=(3384.36 / 6165.829) / (2975.208 / 5993.493)
=0.54889 / 0.496406
=1.1057

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 - (2635.916 + 960.741) / 11259.66) / (1 - (2364.059 + 977.134) / 10991.275)
=0.680571 / 0.696014
=0.9778

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
=5993.493 / 6165.829
=0.972

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))
=(611.531 / (611.531 + 977.134)) / (444.255 / (444.255 + 960.741))
=0.384934 / 0.316197
=1.2174

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)
=(1082.903 / 5993.493) / (1020.03 / 6165.829)
=0.18068 / 0.165433
=1.0922

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)
=((282.894 + 436.217) / 11259.66) / ((311.142 + 427.349) / 10991.275)
=0.063866 / 0.067189
=0.9505

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
=(1659.325 - 417.352 - 1138.382) / 11259.66
=0.0092

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.

T. Rowe Price Group has a M-score of -2.32 suggests that the company is unlikely to be a manipulator.


T. Rowe Price Group Beneish M-Score Related Terms

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T. Rowe Price Group (WBO:TROW) Business Description

Address
100 East Pratt Street, Baltimore, MD, USA, 21202
T. Rowe Price provides asset-management services for individual and institutional investors. It offers a broad range of no-load U.S. and international stock, hybrid, bond, and money market funds. At the end of October 2023, the firm had $1.312 trillion in managed assets, composed of equity (51%), balanced (33%), fixed-income and money market (13%), and alternatives (3%) offerings. Approximately two thirds of the company's managed assets are held in retirement-based accounts, which provides T. Rowe Price with a somewhat stickier client base than most of its peers. The firm also manages private accounts, provides retirement planning advice, and offers discount brokerage and trust services. The company is primarily a U.S.-based asset manager, deriving just over 9% of its AUM from overseas.