Federated Hermes Beneish M-Score Historical Data
The historical data trend for Federated Hermes'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.
Federated Hermes Beneish M-Score Chart
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Federated Hermes Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.62 |
-2.59 |
-2.38 |
-2.81 |
-2.34 |
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Federated Hermes Quarterly Data
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Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
| Beneish M-Score |
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-2.57 |
-2.30 |
-2.22 |
-2.34 |
-2.49 |
Competitive Comparison of Federated Hermes's Beneish M-Score
For the Asset Management subindustry, Federated Hermes'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.
Federated Hermes's Beneish M-Score Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Federated Hermes's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Federated Hermes's Beneish M-Score falls into.
Federated Hermes 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 Federated Hermes 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 * 1.0374 | + | 0.528 * 1.0061 | + | 0.404 * 0.9556 | + | 0.892 * 1.0414 | + | 0.115 * 1.2173 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.975 | + | 4.679 * -0.02439 | - | 0.327 * 0.9777 |
| = | -2.50 |
* 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 €111 Mil.
Revenue was 364.661 + 359.003 + 377.289 + 399.873 = €1,501 Mil.
Gross Profit was 239.039 + 242.082 + 246.93 + 252.301 = €980 Mil.
Total Current Assets was €662 Mil.
Total Assets was €1,920 Mil.
Property, Plant and Equipment(Net PPE) was €114 Mil.
Depreciation, Depletion and Amortization(DDA) was €23 Mil.
Selling, General, & Admin. Expense(SGA) was €550 Mil.
Total Current Liabilities was €195 Mil.
Long-Term Debt & Capital Lease Obligation was €403 Mil.
Net Income was 69.03 + 75.357 + 70.299 + 66.618 = €281 Mil.
Non Operating Income was 7.899 + 16.395 + 2.543 + 4.868 = €32 Mil.
Cash Flow from Operations was 12.909 + 118.873 + 98.98 + 65.666 = €296 Mil.
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Total Receivables was €103 Mil.
Revenue was 356.965 + 352.961 + 384.954 + 346.244 = €1,441 Mil.
Gross Profit was 229.12 + 235.91 + 257.02 + 225.074 = €947 Mil.
Total Current Assets was €594 Mil.
Total Assets was €1,867 Mil.
Property, Plant and Equipment(Net PPE) was €109 Mil.
Depreciation, Depletion and Amortization(DDA) was €27 Mil.
Selling, General, & Admin. Expense(SGA) was €542 Mil.
Total Current Liabilities was €198 Mil.
Long-Term Debt & Capital Lease Obligation was €397 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) |
| = | (111.251 / 1500.826) | / | (102.975 / 1441.124) |
| = | 0.074127 | / | 0.071455 |
| | = | 1.0374 |
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) |
| = | (947.124 / 1441.124) | / | (980.352 / 1500.826) |
| = | 0.657212 | / | 0.653208 |
| | = | 1.0061 |
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 - (662.084 + 114.243) / 1920.014) | / | (1 - (594.259 + 109.03) / 1867.046) |
| = | 0.595666 | / | 0.623315 |
| | = | 0.9556 |
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 |
| = | 1500.826 | / | 1441.124 |
| | = | 1.0414 |
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)) |
| = | (27.422 / (27.422 + 109.03)) | / | (22.589 / (22.589 + 114.243)) |
| = | 0.200964 | / | 0.165086 |
| | = | 1.2173 |
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) |
| = | (550.383 / 1500.826) | / | (542.012 / 1441.124) |
| = | 0.36672 | / | 0.376104 |
| | = | 0.975 |
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) |
| = | ((402.502 + 195.499) / 1920.014) | / | ((396.554 + 198.185) / 1867.046) |
| = | 0.311457 | / | 0.318545 |
| | = | 0.9777 |
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 |
| = | (281.304 - 31.705 | - | 296.428) | / | 1920.014 |
| | = | -0.02439 |
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.
Federated Hermes has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.
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