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PNC (PNC Financial Services Group) Beneish M-Score : -2.51 (As of Oct. 31, 2024)


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What is PNC Financial Services Group Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 -2.51 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PNC' s Beneish M-Score Range Over the Past 10 Years
Min: -2.87   Med: -2.52   Max: -2.27
Current: -2.51

During the past 13 years, the highest Beneish M-Score of PNC Financial Services Group was -2.27. The lowest was -2.87. And the median was -2.52.


PNC Financial Services 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 PNC Financial Services Group 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 * 1.1164+0.528 * 1+0.404 * 1+0.892 * 0.9215+0.115 * 1
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0649+4.679 * -0.004609-0.327 * 1.0952
=-2.51

* 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 $6,481 Mil.
Revenue was 4671 + 5146 + 5373 + 5234 = $20,424 Mil.
Gross Profit was 4671 + 5146 + 5373 + 5234 = $20,424 Mil.
Total Current Assets was $0 Mil.
Total Assets was $556,519 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $166 Mil.
Selling, General, & Admin. Expense(SGA) was $7,656 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $71,391 Mil.
Net Income was 1459 + 1330 + 864 + 1554 = $5,207 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 1035 + 1758 + 4864 + 115 = $7,772 Mil.
Total Receivables was $6,300 Mil.
Revenue was 5293 + 5575 + 5747 + 5550 = $22,165 Mil.
Gross Profit was 5293 + 5575 + 5747 + 5550 = $22,165 Mil.
Total Current Assets was $0 Mil.
Total Assets was $558,207 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $247 Mil.
Selling, General, & Admin. Expense(SGA) was $7,802 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $65,384 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)
=(6481 / 20424) / (6300 / 22165)
=0.317323 / 0.284232
=1.1164

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)
=(22165 / 22165) / (20424 / 20424)
=1 / 1
=1

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 - (0 + 0) / 556519) / (1 - (0 + 0) / 558207)
=1 / 1
=1

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
=20424 / 22165
=0.9215

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))
=(247 / (247 + 0)) / (166 / (166 + 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)
=(7656 / 20424) / (7802 / 22165)
=0.374853 / 0.351996
=1.0649

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)
=((71391 + 0) / 556519) / ((65384 + 0) / 558207)
=0.128281 / 0.117132
=1.0952

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
=(5207 - 0 - 7772) / 556519
=-0.004609

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.

PNC Financial Services Group has a M-score of -2.51 suggests that the company is unlikely to be a manipulator.


PNC Financial Services Group Beneish M-Score Related Terms

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PNC Financial Services Group Business Description

Traded in Other Exchanges
Address
300 Fifth Avenue, The Tower at PNC Plaza, Pittsburgh, PA, USA, 15222-2401
PNC Financial Services Group is a diversified financial services company offering retail banking, corporate and institutional banking, asset management, and residential mortgage banking across the United States.
Executives
William S Demchak officer: Vice Chairman and CFO THE TOWER AT PNC PLAZA, 300 FIFTH AVENUE, PITTSBURGH PA 15222-2707
Michael P. Lyons officer: Executive Vice President 249 FIFTH AVENUE, 1PNC, PITTSBURGH PA 15222
Richard Kevin Bynum officer: Executive Vice President 7567 GLEN POINTE CT., SPRINGFIELD VA 22153
Michael J Hannon officer: Chief Credit Policy Officer 249 FIFTH AVE, P1-POPP-30-1, PITTSBURGH PA 15222
Guild Deborah officer: Executive Vice President 847 PERSIMMON ROAD, SEWICKLEY PA 15143
Bryan Scott Salesky director 2545 RAILROAD ST, SUITE 400, PITTSBURGH PA 15222
Joseph Alvarado director 705 N. BAR Y ROAD, P.O. BOX 11368, JACKSON WY 83002
Kieran John Fallon officer: Executive Vice President 17160 SPRING CREEK LANE, LEESBURG VA 20176
Overstrom Alexander E. C. officer: Executive Vice President 643 PITCAIRN PLACE, PITTSBURGH PA 15232
Renu Khator director 11 GREENWAY PLAZA, SUITE 2400, HOUSTON TX 77046
Robert A Niblock director 1605 CURTIS BRIDGE ROAD, WILKESBORO NC 28697
Martin Pfinsgraff director 354 KINGSBERRY DRIVE, ANNAPOLIS MD 21409
Karen L. Larrimer officer: Executive Vice President ONE PNC PLAZA, 249 FIFTH AVENUE, PITTSBURGH PA 15222-2707
Ganesh Manapra Krishnan officer: Executive Vice President 6416 INTERLAKEN DR, MCDONALD PA 15057
David L Cohen director