MSCI (BSP:M1SC34) Beneish M-Score : -2.46 (As of Apr. 28, 2024)

View and export this data going back to 2020. Start your Free Trial

What is MSCI 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 -2.46 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:M1SC34' s Beneish M-Score Range Over the Past 10 Years
Min: -2.83 Med: -2.58 Max: -2.03
Current: -2.46

During the past 13 years, the highest Beneish M-Score of MSCI was -2.03. The lowest was -2.83. And the median was -2.58.

MSCI Beneish M-Score Historical Data

The historical data trend for MSCI'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.

MSCI Beneish M-Score Chart

MSCI Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.57

-2.56

-2.35

-2.71

-2.36

MSCI Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.65	-2.71	-2.54	-2.36	-2.46

Competitive Comparison of MSCI's Beneish M-Score

For the Financial Data & Stock Exchanges subindustry, MSCI'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.

MSCI's Beneish M-Score Distribution in the Capital Markets Industry

For the Capital Markets industry and Financial Services sector, MSCI's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where MSCI's Beneish M-Score falls into.

MSCI 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 MSCI for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0214

0.528 * 0.9981

0.404 * 1.1831

0.892 * 1.0878

0.115 * 0.9215

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9666

4.679 * -0.043627

0.327 * 0.9503

-2.50

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was R$3,713 Mil.
Revenue was 3386.09 + 3381.381 + 3088.856 + 3014.91 = R$12,871 Mil.
Gross Profit was 2746.116 + 2780.877 + 2568.756 + 2480.682 = R$10,576 Mil.
Total Current Assets was R$6,797 Mil.
Total Assets was R$27,282 Mil.
Property, Plant and Equipment(Net PPE) was R$937 Mil.
Depreciation, Depletion and Amortization(DDA) was R$845 Mil.
Selling, General, & Admin. Expense(SGA) was R$2,222 Mil.
Total Current Liabilities was R$6,817 Mil.
Long-Term Debt & Capital Lease Obligation was R$23,120 Mil.
Net Income was 1274.6 + 1976.481 + 1282.378 + 1198.015 = R$5,731 Mil.
Non Operating Income was -14.257 + 689.323 + 4.618 + -12.527 = R$667 Mil.
Cash Flow from Operations was 1494.622 + 1905.792 + 1437.809 + 1416.329 = R$6,255 Mil.

Total Receivables was R$3,342 Mil.
Revenue was 3084.627 + 3022.441 + 2939.767 + 2785.351 = R$11,832 Mil.
Gross Profit was 2518.728 + 2485.396 + 2423.702 + 2276.705 = R$9,705 Mil.
Total Current Assets was R$9,431 Mil.
Total Assets was R$26,349 Mil.
Property, Plant and Equipment(Net PPE) was R$961 Mil.
Depreciation, Depletion and Amortization(DDA) was R$746 Mil.
Selling, General, & Admin. Expense(SGA) was R$2,113 Mil.
Total Current Liabilities was R$6,295 Mil.
Long-Term Debt & Capital Lease Obligation was R$24,130 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)
	=	(3712.994 / 12871.237)	/	(3341.754 / 11832.186)
	=	0.288472	/	0.282429
	=	1.0214

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)
	=	(9704.531 / 11832.186)	/	(10576.431 / 12871.237)
	=	0.820181	/	0.821711
	=	0.9981

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 - (6797.014 + 936.561) / 27282.277)	/	(1 - (9430.519 + 960.648) / 26348.745)
	=	0.716535	/	0.60563
	=	1.1831

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
	=	12871.237	/	11832.186
	=	1.0878

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))
	=	(746.263 / (746.263 + 960.648))	/	(845.464 / (845.464 + 936.561))
	=	0.437201	/	0.47444
	=	0.9215

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)
	=	(2221.867 / 12871.237)	/	(2113.191 / 11832.186)
	=	0.172623	/	0.178597
	=	0.9666

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)
	=	((23119.862 + 6817.107) / 27282.277)	/	((24130.126 + 6295.062) / 26348.745)
	=	1.097305	/	1.154711
	=	0.9503

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
	=	(5731.474 - 667.157	-	6254.552)	/	27282.277
	=	-0.043627

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.

MSCI has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.

MSCI Beneish M-Score Related Terms

Thank you for viewing the detailed overview of MSCI's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

MSCI (BSP:M1SC34) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » MSCI Inc (BSP:M1SC34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MSCI:USA MSCI:Mexico 3HM:Germany

Address

250 Greenwich Street, 49th Floor, 7 World Trade Center, New York, NY, USA, 10007

Website

https://www.msci.com

MSCI describes its mission as enabling investors to build better portfolios for a better world. MSCI's largest and most profitable segment is its index segment, where it provides benchmarking to asset managers and asset owners. In addition, it boasts over $1.3 trillion in ETF assets linked to MSCI indexes. The MSCI analytics segment provides portfolio management and risk management analytics software to asset managers and asset owners. MSCI's all other segment was broken out into ESG and climate and private assets segments in 2021. In ESG and climate, MSCI provides ESG data to the investment industry. In private assets, MSCI provides real restate reporting, market data, benchmarking, and analytics to investors and real estate managers.

MSCI (BSP:M1SC34) Headlines

No Headlines