Interactive Brokers Group (STU:KY6) Beneish M-Score : -2.31 (As of May. 19, 2024)

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What is Interactive Brokers Group 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 -2.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:KY6' s Beneish M-Score Range Over the Past 10 Years
Min: -3.2 Med: -2.41 Max: -1.91
Current: -2.31

During the past 13 years, the highest Beneish M-Score of Interactive Brokers Group was -1.91. The lowest was -3.20. And the median was -2.41.

Interactive Brokers Group Beneish M-Score Historical Data

The historical data trend for Interactive Brokers Group'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.

Interactive Brokers Group Beneish M-Score Chart

Interactive Brokers Group Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.44

-2.97

-2.23

-2.57

-2.21

Interactive Brokers Group 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															-2.23	-2.02	-1.97	-2.21	-2.31

Competitive Comparison of Interactive Brokers Group's Beneish M-Score

For the Capital Markets subindustry, Interactive Brokers Group'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.

Interactive Brokers Group's Beneish M-Score Distribution in the Capital Markets Industry

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

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

Interactive Brokers Group 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 Interactive Brokers Group 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 * 0.829

0.528 * 0.9503

0.404 * 1.0423

0.892 * 1.5307

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8546

4.679 * -0.049279

0.327 * 0.9002

-2.35

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €49,235 Mil.
Revenue was 2022.16 + 1923.866 + 1900.236 + 1766.622 = €7,613 Mil.
Gross Profit was 1795.84 + 1707.454 + 1689.411 + 1555.255 = €6,748 Mil.
Total Current Assets was €107,542 Mil.
Total Assets was €121,659 Mil.
Property, Plant and Equipment(Net PPE) was €0 Mil.
Depreciation, Depletion and Amortization(DDA) was €88 Mil.
Selling, General, & Admin. Expense(SGA) was €247 Mil.
Total Current Liabilities was €107,956 Mil.
Long-Term Debt & Capital Lease Obligation was €0 Mil.
Net Income was 161 + 146.72 + 156.479 + 115.375 = €580 Mil.
Non Operating Income was 11.96 + 0.917 + 25.299 + -57.226 = €-19 Mil.
Cash Flow from Operations was 1548.36 + 2172.373 + 917.323 + 1955.837 = €6,594 Mil.

Total Receivables was €38,799 Mil.
Revenue was 1631.698 + 1401.84 + 1159.48 + 780.45 = €4,973 Mil.
Gross Profit was 1423.416 + 1204.544 + 959.5 + 601.656 = €4,189 Mil.
Total Current Assets was €99,162 Mil.
Total Assets was €111,584 Mil.
Property, Plant and Equipment(Net PPE) was €0 Mil.
Depreciation, Depletion and Amortization(DDA) was €82 Mil.
Selling, General, & Admin. Expense(SGA) was €189 Mil.
Total Current Liabilities was €99,981 Mil.
Long-Term Debt & Capital Lease Obligation was €10,012 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)
	=	(49234.72 / 7612.884)	/	(38799.294 / 4973.468)
	=	6.467289	/	7.801255
	=	0.829

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)
	=	(4189.116 / 4973.468)	/	(6747.96 / 7612.884)
	=	0.842293	/	0.886387
	=	0.9503

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 - (107542.48 + 0) / 121658.96)	/	(1 - (99161.846 + 0) / 111584.046)
	=	0.116033	/	0.111326
	=	1.0423

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
	=	7612.884	/	4973.468
	=	1.5307

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))
	=	(82.316 / (82.316 + 0))	/	(87.785 / (87.785 + 0))
	=	1	/	1
	=	1

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)
	=	(246.689 / 7612.884)	/	(188.59 / 4973.468)
	=	0.032404	/	0.037919
	=	0.8546

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)
	=	((0 + 107955.56) / 121658.96)	/	((10011.546 + 99980.964) / 111584.046)
	=	0.887362	/	0.985737
	=	0.9002

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
	=	(579.574 - -19.05	-	6593.893)	/	121658.96
	=	-0.049279

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.

Interactive Brokers Group has a M-score of -2.35 suggests that the company is unlikely to be a manipulator.

Interactive Brokers Group Beneish M-Score Related Terms

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Interactive Brokers Group (STU:KY6) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Capital Markets » Interactive Brokers Group Inc (STU:KY6) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

IBKR:USA IBKR:Mexico

Address

One Pickwick Plaza, Greenwich, CT, USA, 06830

Website

https://www.interactivebrokers.com

Interactive Brokers is an online brokerage that generates trading commissions (around 43% of net revenue) from facilitating trading in a wide range of products, including equity, options, futures, foreign exchange, bonds, mutual funds, and ETFs. Interactive Brokers also generates net interest income (about 54% of net revenue) from idle client cash and earns fees (about 6% of net revenue) from ancillary services. Principal trading and other miscellaneous activities are small (about negative 3% of net revenue). The firm derives about 70% of its net revenue from the U.S. and 30% from international markets.

Interactive Brokers Group (STU:KY6) Headlines

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