Brookfield Business Beneish M-Score Historical Data
The historical data trend for Brookfield Business'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.
Brookfield Business Beneish M-Score Chart
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Brookfield Business Annual Data
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Trend |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
- |
-2.06 |
-2.72 |
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Brookfield Business Quarterly Data
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Dec18 |
Dec19 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.06 |
-2.26 |
-2.44 |
-2.51 |
-2.72 |
Competitive Comparison of Brookfield Business's Beneish M-Score
For the Asset Management subindustry, Brookfield Business'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.
Brookfield Business's Beneish M-Score Distribution in the Asset Management Industry
For the Asset Management industry and Financial Services sector, Brookfield Business's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Brookfield Business's Beneish M-Score falls into.
Brookfield Business 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 Brookfield Business 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 * 0.4631 | + | 0.528 * 0.7801 | + | 0.404 * 1.0825 | + | 0.892 * 1.1823 | + | 0.115 * 0.6863 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.2943 | + | 4.679 * 0.049164 | - | 0.327 * 0.8974 |
| = | -2.72 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was C$2,038 Mil.
Revenue was -1483.81 + 3997.057 + 3871.54 + 3996.804 = C$10,382 Mil.
Gross Profit was -241.488 + 474.938 + 462.353 + 1755.529 = C$2,451 Mil.
Total Current Assets was C$3,691 Mil.
Total Assets was C$28,418 Mil.
Property, Plant and Equipment(Net PPE) was C$3,680 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1,381 Mil.
Selling, General, & Admin. Expense(SGA) was C$1,612 Mil.
Total Current Liabilities was C$6,477 Mil.
Long-Term Debt & Capital Lease Obligation was C$11,134 Mil.
Net Income was 609.086 + 131.251 + 143.489 + -191.562 = C$692 Mil.
Non Operating Income was -1151.093 + 56.83 + 437.109 + -228.506 = C$-886 Mil.
Cash Flow from Operations was 242.83 + 35.181 + 94.331 + -191.562 = C$181 Mil.
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Total Receivables was C$3,722 Mil.
Revenue was -911.553 + 3874.98 + 2967.967 + 2849.766 = C$8,781 Mil.
Gross Profit was -129.057 + 401.504 + 266.323 + 1078.632 = C$1,617 Mil.
Total Current Assets was C$6,629 Mil.
Total Assets was C$37,190 Mil.
Property, Plant and Equipment(Net PPE) was C$5,115 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1,178 Mil.
Selling, General, & Admin. Expense(SGA) was C$1,053 Mil.
Total Current Liabilities was C$8,131 Mil.
Long-Term Debt & Capital Lease Obligation was C$17,553 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) |
| = | (2037.89 / 10381.591) | / | (3722.29 / 8781.16) |
| = | 0.196298 | / | 0.423895 |
| | = | 0.4631 |
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) |
| = | (1617.402 / 8781.16) | / | (2451.332 / 10381.591) |
| = | 0.18419 | / | 0.236123 |
| | = | 0.7801 |
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 - (3690.742 + 3680.009) / 28417.771) | / | (1 - (6629.48 + 5114.752) / 37190.296) |
| = | 0.740629 | / | 0.684212 |
| | = | 1.0825 |
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 |
| = | 10381.591 | / | 8781.16 |
| | = | 1.1823 |
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)) |
| = | (1178.287 / (1178.287 + 5114.752)) | / | (1380.656 / (1380.656 + 3680.009)) |
| = | 0.187237 | / | 0.272821 |
| | = | 0.6863 |
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) |
| = | (1611.568 / 10381.591) | / | (1053.205 / 8781.16) |
| = | 0.155233 | / | 0.119939 |
| | = | 1.2943 |
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) |
| = | ((11133.938 + 6477.245) / 28417.771) | / | ((17553.178 + 8130.622) / 37190.296) |
| = | 0.619724 | / | 0.690605 |
| | = | 0.8974 |
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 |
| = | (692.264 - -885.66 | - | 180.78) | / | 28417.771 |
| | = | 0.049164 |
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.
Brookfield Business has a M-score of -2.72 suggests that the company is unlikely to be a manipulator.
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