Switch to:
Accenture PLC (NYSE:ACN)
Beneish M-Score
-3.01 (As of Today)

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.

Accenture PLC has a M-score of -3.01 suggests that the company is not a manipulator.

ACN' s 10-Year Beneish M-Score Range
Min: -3.71   Max: -0.41
Current: -3.01

-3.71
-0.41

During the past 13 years, the highest Beneish M-Score of Accenture PLC was -0.41. The lowest was -3.71. And the median was -2.77.


Definition

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 Accenture PLC 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 * 0.6473+0.528 * 1.0365+0.404 * 1.0247+0.892 * 1.0713+0.115 * 0.9129
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9251+4.679 * -0.066-0.327 * 0.9898
=-3.01

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Feb15) TTM:Last Year (Feb14) TTM:
Accounts Receivable was $3,688 Mil.
Revenue was 7931.59 + 8343.257 + 8267.319 + 8240.18 = $32,782 Mil.
Gross Profit was 2240.639 + 2539.29 + 2468.62 + 2536.357 = $9,785 Mil.
Total Current Assets was $11,008 Mil.
Total Assets was $16,992 Mil.
Property, Plant and Equipment(Net PPE) was $726 Mil.
Depreciation, Depletion and Amortization(DDA) was $645 Mil.
Selling, General & Admin. Expense(SGA) was $5,318 Mil.
Total Current Liabilities was $7,494 Mil.
Long-Term Debt was $27 Mil.
Net Income was 690.726 + 831.53 + 701.016 + 817.336 = $3,041 Mil.
Non Operating Income was -21.508 + -2.979 + 5.877 + -6.051 = $-25 Mil.
Cash Flow from Operations was 301.287 + 872.9 + 1649.212 + 1363.26 = $4,187 Mil.
Accounts Receivable was $5,319 Mil.
Revenue was 7567.483 + 7799.696 + 7524.994 + 7707.935 = $30,600 Mil.
Gross Profit was 2230.142 + 2449.347 + 2349.6 + 2438.019 = $9,467 Mil.
Total Current Assets was $10,634 Mil.
Total Assets was $16,357 Mil.
Property, Plant and Equipment(Net PPE) was $784 Mil.
Depreciation, Depletion and Amortization(DDA) was $590 Mil.
Selling, General & Admin. Expense(SGA) was $5,366 Mil.
Total Current Liabilities was $7,288 Mil.
Long-Term Debt was $26 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(3688.052 / 32782.346) / (5318.684 / 30600.108)
=0.11250116 / 0.17381259
=0.6473

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)
=(2539.29 / 30600.108) / (2240.639 / 32782.346)
=0.30938152 / 0.29848096
=1.0365

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (11007.808 + 725.917) / 16991.565) / (1 - (10633.88 + 783.961) / 16357.209)
=0.30943824 / 0.30196888
=1.0247

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.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=32782.346 / 30600.108
=1.0713

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))
=(590.305 / (590.305 + 783.961)) / (645.031 / (645.031 + 725.917))
=0.42954202 / 0.47049998
=0.9129

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)
=(5318.033 / 32782.346) / (5366.008 / 30600.108)
=0.16222247 / 0.17535912
=0.9251

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)
=((27.033 + 7493.986) / 16991.565) / ((26.322 + 7288.358) / 16357.209)
=0.44263251 / 0.44718387
=0.9898

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
=(3040.608 - -24.661 - 4186.659) / 16991.565
=-0.066

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.

Accenture PLC has a M-score of -3.01 suggests that the company will not be a manipulator.


Related Terms

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Accenture PLC Annual Data

Aug05Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14
DSRI 0.93241.66041.01281.03440.81340.75651.0780.87451.05991.1042
GMI 1.02541.08730.97280.99210.96140.94041.0241.01590.97761.0162
AQI 1.14770.94351.10141.07441.06340.97271.08550.89591.27121.16
SGI 1.13111.06631.17691.180.91530.99671.18441.08871.02071.0487
DEPI 0.9870.94520.86180.93270.91550.9931.05880.91441.00060.9842
SGAI 0.95960.97770.93510.99871.0391.09950.95910.95591.01860.9687
LVGI 1.00571.09941.06130.85240.92151.00530.9820.96820.99750.9405
TATA -0.1069-0.1757-0.1288-0.09-0.128-0.1009-0.075-0.1025-0.0002-0.0295
M-score -2.85-2.65-2.91-2.64-3.31-3.24-2.53-3.02-2.31-2.38

Accenture PLC Quarterly Data

Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14Feb15
DSRI 1.00381.44021.03031.05990.97941.05111.59871.10421.01510.6473
GMI 1.00190.99340.98060.97760.9830.991.00191.01621.02861.0365
AQI 0.94310.98121.03081.27121.22841.3991.35441.161.11971.0247
SGI 1.04891.02951.01661.02071.02241.01691.03231.04871.0621.0713
DEPI 0.96360.96710.9741.00060.98781.00050.99850.98420.93540.9129
SGAI 0.9710.98561.01471.01861.01891.010.99050.96870.94170.9251
LVGI 0.98120.94410.94490.99750.97820.99320.97340.94050.97370.9898
TATA -0.0643-0.0233-0.0332-0.0002-0.0143-0.0189-0.0092-0.0295-0.0652-0.066
M-score -2.75-2.15-2.58-2.31-2.46-2.35-1.79-2.38-2.64-3.01
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK