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RJF (Raymond James Financial) Beneish M-Score : -2.31 (As of Oct. 31, 2024)


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What is Raymond James Financial 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 -2.31 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

RJF' s Beneish M-Score Range Over the Past 10 Years
Min: -2.89   Med: -2.36   Max: -1.92
Current: -2.31

During the past 13 years, the highest Beneish M-Score of Raymond James Financial was -1.92. The lowest was -2.89. And the median was -2.36.


Raymond James Financial 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 Raymond James Financial 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 * 1.0938+0.528 * 1+0.404 * 0.999+0.892 * 1.0878+0.115 * 1.0363
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0193+4.679 * -0.00222-0.327 * 0.9472
=-2.31

* 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 $4,731 Mil.
Revenue was 3180 + 3074 + 2973 + 3012 = $12,239 Mil.
Gross Profit was 3180 + 3074 + 2973 + 3012 = $12,239 Mil.
Total Current Assets was $0 Mil.
Total Assets was $80,628 Mil.
Property, Plant and Equipment(Net PPE) was $1,180 Mil.
Depreciation, Depletion and Amortization(DDA) was $174 Mil.
Selling, General, & Admin. Expense(SGA) was $7,946 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $3,088 Mil.
Net Income was 492 + 476 + 498 + 434 = $1,900 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 711 + 391 + 543 + 434 = $2,079 Mil.
Total Receivables was $3,976 Mil.
Revenue was 2867 + 2837 + 2752 + 2795 = $11,251 Mil.
Gross Profit was 2867 + 2837 + 2752 + 2795 = $11,251 Mil.
Total Current Assets was $0 Mil.
Total Assets was $77,633 Mil.
Property, Plant and Equipment(Net PPE) was $1,061 Mil.
Depreciation, Depletion and Amortization(DDA) was $163 Mil.
Selling, General, & Admin. Expense(SGA) was $7,166 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt & Capital Lease Obligation was $3,139 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)
=(4731 / 12239) / (3976 / 11251)
=0.386551 / 0.353391
=1.0938

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)
=(11251 / 11251) / (12239 / 12239)
=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 + 1180) / 80628) / (1 - (0 + 1061) / 77633)
=0.985365 / 0.986333
=0.999

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
=12239 / 11251
=1.0878

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))
=(163 / (163 + 1061)) / (174 / (174 + 1180))
=0.13317 / 0.128508
=1.0363

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)
=(7946 / 12239) / (7166 / 11251)
=0.649236 / 0.636921
=1.0193

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)
=((3088 + 0) / 80628) / ((3139 + 0) / 77633)
=0.038299 / 0.040434
=0.9472

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
=(1900 - 0 - 2079) / 80628
=-0.00222

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.

Raymond James Financial has a M-score of -2.31 suggests that the company is unlikely to be a manipulator.


Raymond James Financial Beneish M-Score Related Terms

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Raymond James Financial Business Description

Traded in Other Exchanges
Address
880 Carillon Parkway, Saint Petersburg, FL, USA, 33716
Raymond James Financial is a financial holding company whose major operations include wealth management, investment banking, asset management, and commercial banking. The company supports more than 8,000 employee and independent contractor financial advisors across the United States, Canada, and the United Kingdom with over $1.2 trillion of assets under administration as of September 2023. Approximately 90% of the company's revenue is from the US and 70% is from the company's wealth-management segment.
Executives
Tashtego S Elwyn officer: President - RJA 880 CARILLON PARKWAY, ST PETERSBURG FL 33716
Bella Loykhter Allaire officer: Executive Vice President-RJA 880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
James E Bunn officer: Co-Pres-GlobEq&Inv Banking-RJA 880 CARILLON PARKWAY, SAINT PETERSBURG FL 33716
Steven M Raney officer: President & CEO RJBank 880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Art A Garcia director 11690 N.W. 105TH STREET, MIAMI FL 33178
Jonathan N Santelli officer: EVP, Gen Counsel, Secy 880 CARILLON PARKWAY, SAINT PETERSBURG FL 33716
Paul C Reilly director 880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Jeffrey A Dowdle officer: President, AMS - RJA 880 CARILLON PARKWAY, ST. PETERSBURG FL 33716
Horace Carter officer: President, Fixed Income 1100 RIDGEWAY LOOP ROAD, MEMPHIS TN 38120
Raymond W Mcdaniel director 7 WORLD TRADE CENTER, 250 GREENWICH STREET, NEW YORK NY 10007
Jodi Perry officer: President, ICD for RJFS 880 CARILLON PARKWAY, SAINT PETERSBURG FL 33716
George Catanese officer: Executive Vice President 880 CARILLON PARKWAY, ST. PETERSBURG X1 33716
Thomas A James director, 10 percent owner, officer: Chairman/CEO 880 CARILLON PARKWAY, ST. PETERSBURG FL 33772
Christopher S Aisenbrey officer: Chief Human Resources Officer 880 CARILLON PARKWAY, SAINT PETERSBURG FL 33716
Coulter James Robert Edward officer: Director & CEO, RJ Ltd. 40 KING STREET W, SUITE 5400, TORONTO A6 M5H 3Y2