GURUFOCUS.COM » STOCK LIST » Financial Services » Asset Management » BlackRock Inc (NYSE:BLK) » Definitions » Beneish M-Score

BLK (BlackRock) Beneish M-Score : -2.49 (As of Oct. 31, 2024)


View and export this data going back to 1999. Start your Free Trial

What is BlackRock 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 -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BLK' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98   Med: -2.45   Max: -2.18
Current: -2.49

During the past 13 years, the highest Beneish M-Score of BlackRock was -2.18. The lowest was -2.98. And the median was -2.45.


BlackRock Beneish M-Score Historical Data

The historical data trend for BlackRock'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.

BlackRock Beneish M-Score Chart

BlackRock Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.19 -2.46 -2.45 -2.65 -2.30

BlackRock Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.40 -2.31 -2.30 -2.47 -2.49

Competitive Comparison of BlackRock's Beneish M-Score

For the Asset Management subindustry, BlackRock'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.


BlackRock's Beneish M-Score Distribution in the Asset Management Industry

For the Asset Management industry and Financial Services sector, BlackRock's Beneish M-Score distribution charts can be found below:

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



BlackRock 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 BlackRock 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 * 0.9729+0.528 * 0.9783+0.404 * 0.9581+0.892 * 1.0768+0.115 * 0.9792
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0056+4.679 * 0.006849-0.327 * 1.1731
=-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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $3,987 Mil.
Revenue was 4805 + 4728 + 4631 + 4522 = $18,686 Mil.
Gross Profit was 2310 + 2194 + 2218 + 2137 = $8,859 Mil.
Total Current Assets was $21,288 Mil.
Total Assets was $125,271 Mil.
Property, Plant and Equipment(Net PPE) was $2,511 Mil.
Depreciation, Depletion and Amortization(DDA) was $438 Mil.
Selling, General, & Admin. Expense(SGA) was $1,936 Mil.
Total Current Liabilities was $1,351 Mil.
Long-Term Debt & Capital Lease Obligation was $11,678 Mil.
Net Income was 1495 + 1573 + 1375 + 1604 = $6,047 Mil.
Non Operating Income was 159 + 176 + 206 + 117 = $658 Mil.
Cash Flow from Operations was 1365 + -408 + 1998 + 1576 = $4,531 Mil.
Total Receivables was $3,806 Mil.
Revenue was 4463 + 4243 + 4337 + 4311 = $17,354 Mil.
Gross Profit was 2076 + 1902 + 2047 + 2024 = $8,049 Mil.
Total Current Assets was $16,451 Mil.
Total Assets was $122,644 Mil.
Property, Plant and Equipment(Net PPE) was $2,509 Mil.
Depreciation, Depletion and Amortization(DDA) was $427 Mil.
Selling, General, & Admin. Expense(SGA) was $1,788 Mil.
Total Current Liabilities was $1,156 Mil.
Long-Term Debt & Capital Lease Obligation was $9,718 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)
=(3987 / 18686) / (3806 / 17354)
=0.213368 / 0.219315
=0.9729

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)
=(8049 / 17354) / (8859 / 18686)
=0.463812 / 0.474098
=0.9783

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 - (21288 + 2511) / 125271) / (1 - (16451 + 2509) / 122644)
=0.81002 / 0.845406
=0.9581

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
=18686 / 17354
=1.0768

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))
=(427 / (427 + 2509)) / (438 / (438 + 2511))
=0.145436 / 0.148525
=0.9792

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)
=(1936 / 18686) / (1788 / 17354)
=0.103607 / 0.103031
=1.0056

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)
=((11678 + 1351) / 125271) / ((9718 + 1156) / 122644)
=0.104007 / 0.088663
=1.1731

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
=(6047 - 658 - 4531) / 125271
=0.006849

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.

BlackRock has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.


BlackRock Beneish M-Score Related Terms

Thank you for viewing the detailed overview of BlackRock's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


BlackRock Business Description

Address
50 Hudson Yards, New York, NY, USA, 10001
BlackRock is the largest asset manager in the world, with $10.646 trillion in assets under management at the end of June 2024. Its product mix is fairly diverse, with 55% of managed assets in equity strategies, 26% in fixed income, 9% in multiasset classes, 7% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the US and Canada.
Executives
Mark Wiedman officer: Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
J. Richard Kushel officer: Senior Managing Director BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Laurence Fink director, officer: Chairman and CEO BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Pamela Daley director C/O PATHEON N.V., HERENGRACHT 483, AMSTERDAM P7 1017 BT
Rachel Lord officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Stephen Cohen officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Christopher J. Meade officer: General Counsel and CLO BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055
Marc D. Comerchero officer: Principal Accounting Officer BLACKROCK, INC., 50 HUDSON YARDS, NEW YORK NY 10001
Martin Small officer: CFO & Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Amin H. Nasser director 50 HUDSON YARDS, NEW YORK NY 10001
Caroline Heller officer: Senior Managing Director 50 HUDSON YARDS, NEW YORK NY 10001
Manish Mehta officer: Senior Managing Director 55 EAST 52ND STREET, NEW YORK NY 10055
Mark Mccombe officer: Senior Managing Director BLACKROCK, INC., 55 EAST 52ND STREET, NEW YORK NY 10055
Robert Kapito director, officer: President 100 BELLEVUE PARKWAY, WILMINGTON DE 19809
William E Ford director 55 EAST 52ND STREET, 32ND FLOOR, NEW YORK NY 10055