B. Riley Financial Beneish M-Score Historical Data
The historical data trend for B. Riley Financial'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.
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B. Riley Financial Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-1.04 |
-2.08 |
-1.68 |
-2.26 |
- |
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B. Riley Financial Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.26 |
-2.21 |
-2.29 |
-2.28 |
- |
Competitive Comparison
For the Financial Conglomerates subindustry, B. Riley Financial'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.
B. Riley Financial Beneish M-Score Distribution
For the Diversified Financial Services industry and Financial Services sector, B. Riley Financial's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where B. Riley Financial's Beneish M-Score falls into.
B. Riley Financial 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 B. Riley Financial 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 * 0.5319 | + | 0.528 * 1.3766 | + | 0.404 * 1.0835 | + | 0.892 * 1.4099 | + | 0.115 * 0.7649 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.7595 | + | 4.679 * 0.002652 | - | 0.327 * 0.9794 |
| = | -2.28 |
* 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 (Sep23) TTM: | Last Year (Sep22) TTM: |
Total Receivables was $763 Mil.
Revenue was 472.899 + 363.913 + 380.522 + 440.762 = $1,658 Mil.
Gross Profit was 288.628 + 231.875 + 246.075 + 278.215 = $1,045 Mil.
Total Current Assets was $1,145 Mil.
Total Assets was $6,143 Mil.
Property, Plant and Equipment(Net PPE) was $107 Mil.
Depreciation, Depletion and Amortization(DDA) was $52 Mil.
Selling, General, & Admin. Expense(SGA) was $832 Mil.
Total Current Liabilities was $411 Mil.
Long-Term Debt & Capital Lease Obligation was $2,400 Mil.
Net Income was -73.823 + 46.381 + 17.155 + -57.445 = $-68 Mil.
Non Operating Income was -113.278 + 68.926 + 36.018 + -114.199 = $-123 Mil.
Cash Flow from Operations was -118.062 + 24.488 + 52.617 + 79.467 = $39 Mil.
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Total Receivables was $1,018 Mil.
Revenue was 319.034 + 257.384 + 266.118 + 333.52 = $1,176 Mil.
Gross Profit was 253.975 + 223.061 + 240.45 + 302.644 = $1,020 Mil.
Total Current Assets was $1,446 Mil.
Total Assets was $5,834 Mil.
Property, Plant and Equipment(Net PPE) was $101 Mil.
Depreciation, Depletion and Amortization(DDA) was $33 Mil.
Selling, General, & Admin. Expense(SGA) was $777 Mil.
Total Current Liabilities was $385 Mil.
Long-Term Debt & Capital Lease Obligation was $2,340 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) |
| = | (763.338 / 1658.096) | / | (1017.988 / 1176.056) |
| = | 0.46037 | / | 0.865595 |
| | = | 0.5319 |
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) |
| = | (1020.13 / 1176.056) | / | (1044.793 / 1658.096) |
| = | 0.867416 | / | 0.630116 |
| | = | 1.3766 |
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 - (1144.674 + 107.019) / 6142.856) | / | (1 - (1445.909 + 100.724) / 5833.987) |
| = | 0.796236 | / | 0.734893 |
| | = | 1.0835 |
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 |
| = | 1658.096 | / | 1176.056 |
| | = | 1.4099 |
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)) |
| = | (33.331 / (33.331 + 100.724)) | / | (51.545 / (51.545 + 107.019)) |
| = | 0.248637 | / | 0.325074 |
| | = | 0.7649 |
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) |
| = | (831.752 / 1658.096) | / | (776.774 / 1176.056) |
| = | 0.501631 | / | 0.660491 |
| | = | 0.7595 |
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) |
| = | ((2399.716 + 410.537) / 6142.856) | / | ((2340.35 + 384.708) / 5833.987) |
| = | 0.457483 | / | 0.4671 |
| | = | 0.9794 |
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 |
| = | (-67.732 - -122.533 | - | 38.51) | / | 6142.856 |
| | = | 0.002652 |
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.
B. Riley Financial has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.
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