Brookfield Infrastructure (TSX:BIPC) Beneish M-Score : -2.27 (As of May. 12, 2024)

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What is Brookfield Infrastructure 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 -2.27 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TSX:BIPC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31 Med: -2.27 Max: -0.23
Current: -2.27

During the past 7 years, the highest Beneish M-Score of Brookfield Infrastructure was -0.23. The lowest was -3.31. And the median was -2.27.

Brookfield Infrastructure Beneish M-Score Historical Data

The historical data trend for Brookfield Infrastructure'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.

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Brookfield Infrastructure Beneish M-Score Chart

Brookfield Infrastructure Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.31

-0.23

-3.04

-1.95

Brookfield Infrastructure 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															-2.83	-2.82	-1.51	-1.95	-2.27

Competitive Comparison of Brookfield Infrastructure's Beneish M-Score

For the Utilities - Regulated Gas subindustry, Brookfield Infrastructure'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 Infrastructure's Beneish M-Score Distribution in the Utilities - Regulated Industry

For the Utilities - Regulated industry and Utilities sector, Brookfield Infrastructure's Beneish M-Score distribution charts can be found below:

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

Brookfield Infrastructure 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 Infrastructure 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 * 0.9255

0.528 * 1.0669

0.404 * 0.8608

0.892 * 1.5236

0.115 * 1.7164

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.702

4.679 * -0.073594

0.327 * 0.8614

-2.27

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was C$2,472 Mil.
Revenue was 1220.947 + 1230.247 + 745.558 + 714.787 = C$3,912 Mil.
Gross Profit was 762.077 + 779.47 + 548.005 + 516.825 = C$2,606 Mil.
Total Current Assets was C$2,952 Mil.
Total Assets was C$32,356 Mil.
Property, Plant and Equipment(Net PPE) was C$18,995 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1,683 Mil.
Selling, General, & Admin. Expense(SGA) was C$93 Mil.
Total Current Liabilities was C$6,810 Mil.
Long-Term Debt & Capital Lease Obligation was C$18,271 Mil.
Net Income was 37.901 + -304.543 + 1235.38 + -364.036 = C$605 Mil.
Non Operating Income was -13.536 + -399.797 + 1186.669 + -358.722 = C$415 Mil.
Cash Flow from Operations was 1138.378 + 818.376 + 262.501 + 352.079 = C$2,571 Mil.

Total Receivables was C$1,753 Mil.
Revenue was 680.045 + 668.382 + 605.591 + 613.312 = C$2,567 Mil.
Gross Profit was 478.905 + 456.456 + 444.189 + 445.579 = C$1,825 Mil.
Total Current Assets was C$2,248 Mil.
Total Assets was C$14,312 Mil.
Property, Plant and Equipment(Net PPE) was C$6,716 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1,090 Mil.
Selling, General, & Admin. Expense(SGA) was C$87 Mil.
Total Current Liabilities was C$6,877 Mil.
Long-Term Debt & Capital Lease Obligation was C$6,003 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)
	=	(2471.674 / 3911.539)	/	(1752.792 / 2567.33)
	=	0.631893	/	0.68273
	=	0.9255

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)
	=	(1825.129 / 2567.33)	/	(2606.377 / 3911.539)
	=	0.710905	/	0.66633
	=	1.0669

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 - (2952.202 + 18995.069) / 32356.454)	/	(1 - (2248.117 + 6715.616) / 14312.418)
	=	0.321703	/	0.373709
	=	0.8608

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
	=	3911.539	/	2567.33
	=	1.5236

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))
	=	(1090.366 / (1090.366 + 6715.616))	/	(1682.803 / (1682.803 + 18995.069))
	=	0.139683	/	0.081382
	=	1.7164

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)
	=	(92.75 / 3911.539)	/	(86.713 / 2567.33)
	=	0.023712	/	0.033776
	=	0.702

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)
	=	((18270.893 + 6809.962) / 32356.454)	/	((6002.732 + 6877.076) / 14312.418)
	=	0.775142	/	0.899904
	=	0.8614

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
	=	(604.702 - 414.614	-	2571.334)	/	32356.454
	=	-0.073594

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 Infrastructure has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.

Brookfield Infrastructure Beneish M-Score Related Terms

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Brookfield Infrastructure (TSX:BIPC) Business Description

Industry

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BIPC:USA

Address

250 Vesey Street, 15th Floor, New York, NY, USA, 10281

Website

https://www.bip.brookfield.com

Brookfield Infrastructure Corp is an indirect subsidiary of the partnership of the diversified infrastructure owner and operators. Its business is comprised of a U.K. regulated distribution operation, a Brazilian regulated natural gas transmission operation and an Australian regulated utility.