Banco Bilbao Vizcaya Argentaria 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 Bilbao Vizcaya Argentaria 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 | + | 0.528 * 1 | + | 0.404 * 0.9996 | + | 0.892 * 1.2544 | + | 0.115 * 1.0307 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9166 | + | 4.679 * 0.015739 | - | 0.327 * 1.174 |
| = | -3.14 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was $0 Mil.
Revenue was 8933.696 + 8111.232 + 9867.663 + 9880.823 = $36,793 Mil.
Gross Profit was 8933.696 + 8111.232 + 9867.663 + 9880.823 = $36,793 Mil.
Total Current Assets was $0 Mil.
Total Assets was $871,402 Mil.
Property, Plant and Equipment(Net PPE) was $10,500 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,557 Mil.
Selling, General, & Admin. Expense(SGA) was $12,077 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $80,029 Mil.
Net Income was 2391.304 + 2244.275 + 2223.052 + 2201.517 = $9,060 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 0 + 12091.603 + -4595.518 + -12150.596 = $-4,655 Mil.
|
Total Receivables was $3,373 Mil.
Revenue was 7449.679 + 6872.881 + 7562.376 + 7446.089 = $29,331 Mil.
Gross Profit was 7449.679 + 6872.881 + 7562.376 + 7446.089 = $29,331 Mil.
Total Current Assets was $0 Mil.
Total Assets was $791,824 Mil.
Property, Plant and Equipment(Net PPE) was $9,259 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,421 Mil.
Selling, General, & Admin. Expense(SGA) was $10,504 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $61,941 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 / 36793.414) | / | (3372.591 / 29331.025) |
| = | 0 | / | 0.114984 |
| | = | 0 |
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) |
| = | (29331.025 / 29331.025) | / | (36793.414 / 36793.414) |
| = | 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 + 10500) / 871402.174) | / | (1 - (0 + 9259.101) / 791824.411) |
| = | 0.98795 | / | 0.988307 |
| | = | 0.9996 |
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 |
| = | 36793.414 | / | 29331.025 |
| | = | 1.2544 |
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)) |
| = | (1421.41 / (1421.41 + 9259.101)) | / | (1556.727 / (1556.727 + 10500)) |
| = | 0.133084 | / | 0.129117 |
| | = | 1.0307 |
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) |
| = | (12077.092 / 36793.414) | / | (10504.085 / 29331.025) |
| = | 0.328241 | / | 0.358122 |
| | = | 0.9166 |
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) |
| = | ((80029.348 + 0) / 871402.174) | / | ((61941.113 + 0) / 791824.411) |
| = | 0.09184 | / | 0.078226 |
| | = | 1.174 |
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 |
| = | (9060.148 - 0 | - | -4654.511) | / | 871402.174 |
| | = | 0.015739 |
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 Bilbao Vizcaya Argentaria has a M-score of -3.14 suggests that the company is unlikely to be a manipulator.
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