Fifth Beneish M Score

FITB -  USA Stock  

USD 36.46  0.68  1.90%

This module uses fundamental data of Fifth Third to approximate the value of its Beneish M Score. Fifth Third M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please check Fifth Third Piotroski F Score and Fifth Third Altman Z Score analysis.

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Fifth Third Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 16.46 Billion. The current year Debt to Equity Ratio is expected to grow to 8.59, whereas Long Term Debt is forecasted to decline to about 13.1 B. Fifth Third Calculated Tax Rate is projected to drop slightly based on the last few years of reporting. The past year's Calculated Tax Rate was at 20.59. The current year Accrued Expenses Turnover is expected to grow to 4.46, whereas PPandE Turnover is forecasted to decline to 3.59.
At this time, it appears that Fifth Third Bancorp is an unlikely manipulator. The earnings manipulation may begin if Fifth Third's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Fifth Third executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Fifth Third's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.68
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
N/A
Asset Quality
N/A
Expense Coverage
0.95
Gross Margin Strengs
0.99
Accruals Factor
0.95
Depreciation Resistance
1.04
Net Sales Growth
1.08
Financial Leverage Condition
1.01

Fifth Third Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Fifth Third's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues7.1 B6.5 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense4.6 B4.5 B
Fairly Up
Increasing
Slightly volatile
Net Cash Flow from Operations380.8 M371 M
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion447.4 M492 M
Significantly Down
Decreasing
Stable
Total Assets190.1 B204.7 B
Significantly Down
Increasing
Slightly volatile
Investments168.4 B182.9 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net2.7 B2.9 B
Notably Down
Decreasing
Slightly volatile
Total Liabilities168.4 B181.6 B
Significantly Down
Increasing
Slightly volatile
Total Debt17.7 B16.5 B
Notably Up
Increasing
Slightly volatile
Operating Income2.3 B1.8 B
Significantly Up
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

Fifth Third Bancorp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Fifth Third's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Fifth Third in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Fifth Third's degree of accounting gimmicks and manipulations.

About Fifth Third Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

447.39 MillionShare
Fifth Third Depreciation Amortization and Accretion is projected to decrease significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 492 Million

Fifth Third Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Fifth Third. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues5.97 B6.76 B6.72 B7.86 B6.51 B7.06 B
Total Assets142.18 B142.08 B146.07 B169.37 B204.68 B190.07 B
Property Plant and Equipment Net2.8 B2.65 B2.38 B2.84 B2.87 B2.73 B
Depreciation Amortization and Accretion453 M341 M360 M472 M492 M447.39 M
Selling General and Administrative Expense3.63 B3.65 B3.76 B4.4 B4.46 B4.57 B
Total Liabilities125.94 B125.86 B129.82 B148.17 B181.57 B168.41 B
Total Debt18.05 B19.09 B16.92 B16.24 B16.46 B17.67 B
Operating Income2.21 B2.98 B2.77 B3.2 B1.8 B2.26 B
Net Cash Flow from Operations2.09 B1.48 B2.86 B1.82 B371 M380.76 M
Investments125.97 B126.72 B130.18 B148.61 B182.87 B168.38 B

About Fifth Third Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Fifth Third Bancorp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Fifth Third using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Fifth Third Bancorp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Fifth Third Bancorp is a diversified financial services company headquartered in Cincinnati, Ohio, and the indirect parent company of Fifth Third Bank, National Association, a federally chartered institution. Fifth Thirds common stock is traded on the NASDAQ Global Select Market under the symbol FITB. Fifth Third operates under BanksRegional classification in the United States and is traded on NASDAQ Exchange. It employs 19819 people.

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Please check Fifth Third Piotroski F Score and Fifth Third Altman Z Score analysis. Note that the Fifth Third Bancorp information on this page should be used as a complementary analysis to other Fifth Third's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Search module to search for activelly traded equities including funds and ETFs from over 30 global markets.

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The market value of Fifth Third Bancorp is measured differently than its book value, which is the value of Fifth that is recorded on the company's balance sheet. Investors also form their own opinion of Fifth Third's value that differs from its market value or its book value, called intrinsic value, which is Fifth Third's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fifth Third's market value can be influenced by many factors that don't directly affect Fifth Third Bancorp underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fifth Third's value and its price as these two are different measures arrived at by different means. Investors typically determine Fifth Third value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fifth Third's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.