BlackRock (FRA:BLQA) Beneish M-Score : -2.30 (As of May. 08, 2024)

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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 -2.3 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:

FRA:BLQA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.98 Med: -2.41 Max: -2.18
Current: -2.3

During the past 13 years, the highest Beneish M-Score of BlackRock was -2.18. The lowest was -2.98. And the median was -2.41.

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

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-2.25

-2.52

-2.41

-2.61

-2.30

BlackRock 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															-2.51	-2.36	-2.27	-2.30	-

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:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0731

0.528 * 0.9912

0.404 * 0.9715

0.892 * 1.0156

0.115 * 0.9946

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9955

4.679 * 0.0084

0.327 * 1.3234

-2.48

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €3,644 Mil.
Revenue was 4349.76 + 4246.627 + 4237.114 + 4119.349 = €16,953 Mil.
Gross Profit was 2018.48 + 2054.08 + 2021.109 + 1941.069 = €8,035 Mil.
Total Current Assets was €17,579 Mil.
Total Assets was €114,069 Mil.
Property, Plant and Equipment(Net PPE) was €2,315 Mil.
Depreciation, Depletion and Amortization(DDA) was €399 Mil.
Selling, General, & Admin. Expense(SGA) was €1,809 Mil.
Total Current Liabilities was €1,329 Mil.
Long-Term Debt & Capital Lease Obligation was €10,701 Mil.
Net Income was 1447.16 + 1260.875 + 1502.948 + 1260.818 = €5,472 Mil.
Non Operating Income was 161.92 + 188.902 + 109.629 + 210.444 = €671 Mil.
Cash Flow from Operations was -375.36 + 1832.166 + 1476.712 + 909.155 = €3,843 Mil.

Total Receivables was €3,344 Mil.
Revenue was 3962.962 + 4094.128 + 4354.11 + 4281.596 = €16,693 Mil.
Gross Profit was 1776.468 + 1948.416 + 2065.45 + 2051.874 = €7,842 Mil.
Total Current Assets was €14,654 Mil.
Total Assets was €113,386 Mil.
Property, Plant and Equipment(Net PPE) was €2,372 Mil.
Depreciation, Depletion and Amortization(DDA) was €407 Mil.
Selling, General, & Admin. Expense(SGA) was €1,790 Mil.
Total Current Liabilities was €1,105 Mil.
Long-Term Debt & Capital Lease Obligation was €7,932 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)
	=	(3644.12 / 16952.85)	/	(3343.72 / 16692.796)
	=	0.214956	/	0.200309
	=	1.0731

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)
	=	(7842.208 / 16692.796)	/	(8034.738 / 16952.85)
	=	0.469796	/	0.473946
	=	0.9912

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 - (17579.36 + 2314.72) / 114068.96)	/	(1 - (14653.526 + 2372.36) / 113385.732)
	=	0.825596	/	0.849841
	=	0.9715

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
	=	16952.85	/	16692.796
	=	1.0156

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))
	=	(406.588 / (406.588 + 2372.36))	/	(399.249 / (399.249 + 2314.72))
	=	0.14631	/	0.147109
	=	0.9946

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)
	=	(1809.258 / 16952.85)	/	(1789.628 / 16692.796)
	=	0.106723	/	0.10721
	=	0.9955

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)
	=	((10701.44 + 1329.4) / 114068.96)	/	((7931.528 + 1104.922) / 113385.732)
	=	0.10547	/	0.079697
	=	1.3234

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
	=	(5471.801 - 670.895	-	3842.673)	/	114068.96
	=	0.0084

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 -2.48 suggests that the company is unlikely to be a manipulator.

BlackRock Beneish M-Score Related Terms

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BlackRock (FRA:BLQA) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

BLK:USA BLK:Peru BLK:Mexico 1BLK:Italy BLQAd:UK BLQA:Germany BLAK34:Brazil BLK:Austria

Address

50 Hudson Yards, New York, NY, USA, 10001

Website

https://www.blackrock.com

BlackRock is the largest asset manager in the world, with $9.101 trillion in AUM at the end of September 2023. Product mix is fairly diverse, with 52% of the firm's managed assets in equity strategies, 28% in fixed income, 9% in multi-asset class, 8% 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 also geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the U.S. and Canada.

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