Brookfield Business Beneish M-Score Historical Data
The historical data trend for Brookfield Business'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.
Brookfield Business Beneish M-Score Chart
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Brookfield Business Annual Data
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Trend |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
- |
-2.06 |
-2.20 |
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Brookfield Business Quarterly Data
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Dec18 |
Dec19 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-1.61 |
-1.94 |
-1.99 |
-2.20 |
-2.67 |
Competitive Comparison of Brookfield Business's Beneish M-Score
For the Asset Management subindustry, Brookfield Business'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.
Brookfield Business's Beneish M-Score Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Brookfield Business's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Brookfield Business's Beneish M-Score falls into.
Brookfield Business 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 Brookfield Business 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 * 0.5352 | + | 0.528 * 0.9354 | + | 0.404 * 1.1117 | + | 0.892 * 1.0327 | + | 0.115 * 0.818 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1116 | + | 4.679 * 0.042802 | - | 0.327 * 0.901 |
| = | -2.67 |
* 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 $1,692 Mil.
Revenue was 1865 + -1106 + 2954 + 2914 = $6,627 Mil.
Gross Profit was 213 + -180 + 351 + 348 = $732 Mil.
Total Current Assets was $2,876 Mil.
Total Assets was $20,887 Mil.
Property, Plant and Equipment(Net PPE) was $2,622 Mil.
Depreciation, Depletion and Amortization(DDA) was $938 Mil.
Selling, General, & Admin. Expense(SGA) was $225 Mil.
Total Current Liabilities was $4,651 Mil.
Long-Term Debt & Capital Lease Obligation was $8,495 Mil.
Net Income was -150 + 454 + 97 + 108 = $509 Mil.
Non Operating Income was -123 + -858 + 42 + 329 = $-610 Mil.
Cash Flow from Operations was -53 + 181 + 26 + 71 = $225 Mil.
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Total Receivables was $3,061 Mil.
Revenue was 1865 + -671 + 2905 + 2318 = $6,417 Mil.
Gross Profit was 249 + -95 + 301 + 208 = $663 Mil.
Total Current Assets was $5,570 Mil.
Total Assets was $27,578 Mil.
Property, Plant and Equipment(Net PPE) was $3,731 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,025 Mil.
Selling, General, & Admin. Expense(SGA) was $196 Mil.
Total Current Liabilities was $6,278 Mil.
Long-Term Debt & Capital Lease Obligation was $12,986 Mil.
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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) |
| = | (1692 / 6627) | / | (3061 / 6417) |
| = | 0.255319 | / | 0.477014 |
| | = | 0.5352 |
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) |
| = | (663 / 6417) | / | (732 / 6627) |
| = | 0.103319 | / | 0.110457 |
| | = | 0.9354 |
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 - (2876 + 2622) / 20887) | / | (1 - (5570 + 3731) / 27578) |
| = | 0.736774 | / | 0.662738 |
| | = | 1.1117 |
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 |
| = | 6627 | / | 6417 |
| | = | 1.0327 |
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)) |
| = | (1025 / (1025 + 3731)) | / | (938 / (938 + 2622)) |
| = | 0.215517 | / | 0.263483 |
| | = | 0.818 |
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) |
| = | (225 / 6627) | / | (196 / 6417) |
| = | 0.033952 | / | 0.030544 |
| | = | 1.1116 |
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) |
| = | ((8495 + 4651) / 20887) | / | ((12986 + 6278) / 27578) |
| = | 0.629387 | / | 0.698528 |
| | = | 0.901 |
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 |
| = | (509 - -610 | - | 225) | / | 20887 |
| | = | 0.042802 |
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.
Brookfield Business has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.
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