IHS Markit Beneish M-Score Historical Data
The historical data trend for IHS Markit'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.
IHS Markit Beneish M-Score Chart
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IHS Markit Annual Data
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Trend |
Nov12 |
Nov13 |
Nov14 |
Nov15 |
Nov16 |
Nov17 |
Nov18 |
Nov19 |
Nov20 |
Nov21 |
| Beneish M-Score |
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-2.53 |
-2.59 |
-2.53 |
-2.46 |
-2.49 |
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IHS Markit Quarterly Data
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Feb17 |
May17 |
Aug17 |
Nov17 |
Feb18 |
May18 |
Aug18 |
Nov18 |
Feb19 |
May19 |
Aug19 |
Nov19 |
Feb20 |
May20 |
Aug20 |
Nov20 |
Feb21 |
May21 |
Aug21 |
Nov21 |
| Beneish M-Score |
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-2.46 |
-2.64 |
-2.65 |
-2.69 |
-2.49 |
Competitive Comparison of IHS Markit's Beneish M-Score
For the Consulting Services subindustry, IHS Markit'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.
IHS Markit's Beneish M-Score Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, IHS Markit's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where IHS Markit's Beneish M-Score falls into.
IHS Markit 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 IHS Markit 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 * 0.9358 | + | 0.528 * 0.9936 | + | 0.404 * 0.9706 | + | 0.892 * 1.0864 | + | 0.115 * 0.9649 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9638 | + | 4.679 * -0.007225 | - | 0.327 * 0.9469 |
| = | -2.49 |
* 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 (Nov21) TTM: | Last Year (Nov20) TTM: |
Total Receivables was $907 Mil.
Revenue was 1176.3 + 1180.5 + 1181.4 + 1119.9 = $4,658 Mil.
Gross Profit was 734.7 + 754.8 + 755.6 + 704.7 = $2,950 Mil.
Total Current Assets was $1,835 Mil.
Total Assets was $16,914 Mil.
Property, Plant and Equipment(Net PPE) was $957 Mil.
Depreciation, Depletion and Amortization(DDA) was $587 Mil.
Selling, General, & Admin. Expense(SGA) was $1,181 Mil.
Total Current Liabilities was $2,712 Mil.
Long-Term Debt & Capital Lease Obligation was $4,155 Mil.
Net Income was 737.2 + 161.3 + 159 + 149.3 = $1,207 Mil.
Non Operating Income was -75.2 + -26.9 + -41 + -14.1 = $-157 Mil.
Cash Flow from Operations was 449 + 420.7 + 372 + 244.5 = $1,486 Mil.
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Total Receivables was $892 Mil.
Revenue was 1107.2 + 1073.2 + 1026.6 + 1080.8 = $4,288 Mil.
Gross Profit was 706.9 + 687.6 + 638.3 + 665 = $2,698 Mil.
Total Current Assets was $1,233 Mil.
Total Assets was $16,135 Mil.
Property, Plant and Equipment(Net PPE) was $1,022 Mil.
Depreciation, Depletion and Amortization(DDA) was $592 Mil.
Selling, General, & Admin. Expense(SGA) was $1,128 Mil.
Total Current Liabilities was $1,979 Mil.
Long-Term Debt & Capital Lease Obligation was $4,939 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) |
| = | (906.5 / 4658.1) | / | (891.7 / 4287.8) |
| = | 0.194607 | / | 0.207962 |
| | = | 0.9358 |
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) |
| = | (2697.8 / 4287.8) | / | (2949.8 / 4658.1) |
| = | 0.62918 | / | 0.633262 |
| | = | 0.9936 |
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 - (1834.9 + 956.6) / 16913.9) | / | (1 - (1233.3 + 1021.6) / 16135.2) |
| = | 0.834958 | / | 0.86025 |
| | = | 0.9706 |
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 |
| = | 4658.1 | / | 4287.8 |
| | = | 1.0864 |
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)) |
| = | (591.6 / (591.6 + 1021.6)) | / | (586.5 / (586.5 + 956.6)) |
| = | 0.366725 | / | 0.380079 |
| | = | 0.9649 |
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) |
| = | (1181 / 4658.1) | / | (1128 / 4287.8) |
| = | 0.253537 | / | 0.263072 |
| | = | 0.9638 |
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) |
| = | ((4154.6 + 2712.3) / 16913.9) | / | ((4939.4 + 1978.8) / 16135.2) |
| = | 0.405992 | / | 0.428764 |
| | = | 0.9469 |
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 |
| = | (1206.8 - -157.2 | - | 1486.2) | / | 16913.9 |
| | = | -0.007225 |
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.
IHS Markit has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.
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