AAPL has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
During the past 13 years, the highest Beneish M-Score of Apple Inc was -0.96. The lowest was -4.54. And the median was -2.65.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Apple Inc 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 * 0.7633||+||0.528 * 0.9669||+||0.404 * 1.0767||+||0.892 * 1.2593||+||0.115 * 0.9468|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.951||+||4.679 * -0.1078||-||0.327 * 1.2204|
|This Year (Jun15) TTM:||Last Year (Jun14) TTM:|
|Accounts Receivable was $10,370 Mil.|
Revenue was 49605 + 58010 + 74599 + 42123 = $224,337 Mil.
Gross Profit was 19681 + 23656 + 29741 + 16009 = $89,087 Mil.
Total Current Assets was $70,953 Mil.
Total Assets was $273,151 Mil.
Property, Plant and Equipment(Net PPE) was $21,149 Mil.
Depreciation, Depletion and Amortization(DDA) was $10,107 Mil.
Selling, General & Admin. Expense(SGA) was $13,782 Mil.
Total Current Liabilities was $65,285 Mil.
Long-Term Debt was $47,419 Mil.
Net Income was 10677 + 13569 + 18024 + 8467 = $50,737 Mil.
Non Operating Income was -175 + -226 + -353 + -97 = $-851 Mil.
Cash Flow from Operations was 14988 + 19081 + 33722 + 13250 = $81,041 Mil.
|Accounts Receivable was $10,788 Mil.
Revenue was 37432 + 45646 + 57594 + 37472 = $178,144 Mil.
Gross Profit was 14735 + 17947 + 21846 + 13871 = $68,399 Mil.
Total Current Assets was $67,949 Mil.
Total Assets was $222,520 Mil.
Property, Plant and Equipment(Net PPE) was $17,585 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,760 Mil.
Selling, General & Admin. Expense(SGA) was $11,508 Mil.
Total Current Liabilities was $46,205 Mil.
Long-Term Debt was $29,030 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(10370 / 224337)||/||(10788 / 178144)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(23656 / 178144)||/||(19681 / 224337)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (70953 + 21149) / 273151)||/||(1 - (67949 + 17585) / 222520)|
4. SGI = Sales Growth Index
Ratio of sales 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.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation 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))|
|=||(7760 / (7760 + 17585))||/||(10107 / (10107 + 21149))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses 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)|
|=||(13782 / 224337)||/||(11508 / 178144)|
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$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((47419 + 65285) / 273151)||/||((29030 + 46205) / 222520)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(50737 - -851||-||81041)||/||273151|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Apple Inc has a M-score of -3.03 suggests that the company will not be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Apple Inc Annual Data
Apple Inc Quarterly Data