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Accenture PLC (NYSE:ACN)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

ACN' s 10-Year Beneish M-Score Range
Min: -3.71   Max: -1.39
Current: -2.64

-3.71
-1.39

During the past 13 years, the highest Beneish M-Score of Accenture PLC was -1.39. The lowest was -3.71. And the median was -2.75.


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 * 1.0151+0.528 * 1.0286+0.404 * 1.1197+0.892 * 1.062+0.115 * 0.9354
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9417+4.679 * -0.0652-0.327 * 0.9737
=-2.64

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

This Year (Nov14) TTM:Last Year (Nov13) TTM:
Accounts Receivable was $3,780 Mil.
Revenue was 8343.257 + 8267.319 + 8240.18 + 7567.483 = $32,418 Mil.
Gross Profit was 2539.29 + 2468.62 + 2536.357 + 2230.142 = $9,774 Mil.
Total Current Assets was $11,576 Mil.
Total Assets was $17,630 Mil.
Property, Plant and Equipment(Net PPE) was $740 Mil.
Depreciation, Depletion and Amortization(DDA) was $642 Mil.
Selling, General & Admin. Expense(SGA) was $5,377 Mil.
Total Current Liabilities was $8,137 Mil.
Long-Term Debt was $27 Mil.
Net Income was 831.53 + 701.016 + 817.336 + 671.3 = $3,021 Mil.
Non Operating Income was -2.979 + 5.877 + -6.051 + -4.766 = $-8 Mil.
Cash Flow from Operations was 872.9 + 1649.212 + 1363.26 + 292.38 = $4,178 Mil.
Accounts Receivable was $3,506 Mil.
Revenue was 7799.696 + 7524.994 + 7707.935 + 7493.32 = $30,526 Mil.
Gross Profit was 2449.347 + 2349.6 + 2438.019 + 2230.363 = $9,467 Mil.
Total Current Assets was $11,291 Mil.
Total Assets was $16,516 Mil.
Property, Plant and Equipment(Net PPE) was $779 Mil.
Depreciation, Depletion and Amortization(DDA) was $598 Mil.
Selling, General & Admin. Expense(SGA) was $5,377 Mil.
Total Current Liabilities was $7,829 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)
=(3779.792 / 32418.239) / (3506.187 / 30525.945)
=0.11659461 / 0.11485925
=1.0151

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)
=(2468.62 / 30525.945) / (2539.29 / 32418.239)
=0.31014041 / 0.30150956
=1.0286

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 - (11576.245 + 740.496) / 17630.033) / (1 - (11291.459 + 779.247) / 16515.938)
=0.30137731 / 0.26914802
=1.1197

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
=32418.239 / 30525.945
=1.062

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))
=(598.431 / (598.431 + 779.247)) / (641.935 / (641.935 + 740.496))
=0.43437654 / 0.46435229
=0.9354

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)
=(5377.287 / 32418.239) / (5376.746 / 30525.945)
=0.16587227 / 0.17613692
=0.9417

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)
=((26.786 + 8137.403) / 17630.033) / ((25.943 + 7828.743) / 16515.938)
=0.46308416 / 0.47558219
=0.9737

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
=(3021.182 - -7.919 - 4177.752) / 17630.033
=-0.0652

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 -2.64 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 1.00571.09941.06130.85240.90861.01960.9820.96820.99750.9405
TATA -0.1069-0.1757-0.1288-0.09-0.128-0.1009-0.075-0.1025-0.0002-0.0295
M-score -2.85-2.65-2.91-2.64-3.31-3.25-2.53-3.02-2.31-2.38

Accenture PLC Quarterly Data

Aug12Nov12Feb13May13Aug13Nov13Feb14May14Aug14Nov14
DSRI 0.87451.00381.01821.03031.05990.97941.00291.0921.10421.0151
GMI 1.01591.00190.99340.98060.97760.9830.991.00191.01621.0286
AQI 0.89590.94310.98121.03081.27121.22841.3991.35441.161.1197
SGI 1.08871.04891.02951.01661.02071.02241.01691.03231.04871.062
DEPI 0.91440.96360.96710.9741.00060.98781.00050.99850.98420.9354
SGAI 0.95590.9710.98561.01471.01861.01891.010.99050.96870.9417
LVGI 0.96820.98120.94410.94490.99750.97820.99320.97340.94050.9737
TATA -0.1025-0.0643-0.0233-0.0332-0.0002-0.0143-0.0189-0.0092-0.0295-0.0652
M-score -3.02-2.75-2.54-2.58-2.31-2.46-2.39-2.26-2.38-2.64
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