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Accenture PLC (NYSE:ACN)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

ACN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.71   Max: -1.39
Current: -2.49

-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 -2.79.


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 * 1.0576+0.528 * 1.0038+0.404 * 1.1775+0.892 * 1.022+0.115 * 1.0615
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9982+4.679 * -0.0378-0.327 * 0.9461
=-2.49

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

This Year (Feb16) TTM:Last Year (Feb15) TTM:
Accounts Receivable was $3,986 Mil.
Revenue was 8397.053 + 8465.984 + 8364.511 + 8275.066 = $33,503 Mil.
Gross Profit was 2369.816 + 2562.519 + 2504.405 + 2524.905 = $9,962 Mil.
Total Current Assets was $10,679 Mil.
Total Assets was $18,148 Mil.
Property, Plant and Equipment(Net PPE) was $856 Mil.
Depreciation, Depletion and Amortization(DDA) was $682 Mil.
Selling, General & Admin. Expense(SGA) was $5,425 Mil.
Total Current Liabilities was $7,573 Mil.
Long-Term Debt was $27 Mil.
Net Income was 1326.52 + 818.899 + 737.628 + 793.697 = $3,677 Mil.
Non Operating Income was 532.364 + 4.029 + -16.426 + -3.839 = $516 Mil.
Cash Flow from Operations was 317.346 + 611.305 + 1504.586 + 1413.364 = $3,847 Mil.
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.



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)
=(3986.141 / 33502.614) / (3688.052 / 32782.346)
=0.11898 / 0.11250116
=1.0576

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)
=(2562.519 / 32782.346) / (2369.816 / 33502.614)
=0.29848096 / 0.29733934
=1.0038

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 - (10678.8 + 856.403) / 18147.778) / (1 - (11007.808 + 725.917) / 16991.565)
=0.36437381 / 0.30943824
=1.1775

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
=33502.614 / 32782.346
=1.022

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))
=(645.031 / (645.031 + 725.917)) / (681.795 / (681.795 + 856.403))
=0.47049998 / 0.44324268
=1.0615

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)
=(5425.214 / 33502.614) / (5318.033 / 32782.346)
=0.16193405 / 0.16222247
=0.9982

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)
=((26.866 + 7573.179) / 18147.778) / ((27.033 + 7493.986) / 16991.565)
=0.41878653 / 0.44263251
=0.9461

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
=(3676.744 - 516.128 - 3846.601) / 18147.778
=-0.0378

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 -2.49 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

Aug06Aug07Aug08Aug09Aug10Aug11Aug12Aug13Aug14Aug15
DSRI 1.66041.01281.03440.81340.75651.0780.87451.05991.10420.9637
GMI 1.08730.97280.99210.96140.94041.0241.01590.97761.01621.0195
AQI 0.94351.10141.07441.06340.97271.08550.89591.27121.161.104
SGI 1.06631.17691.180.91530.99671.18441.08871.02071.04871.0326
DEPI 0.94520.86180.93270.91550.9931.05880.91441.00060.98420.9839
SGAI 0.97770.93510.99871.0391.09950.95910.95591.01860.96870.9633
LVGI 1.09941.06130.85240.92151.00530.9820.96820.99750.94051.0264
TATA -0.1757-0.1288-0.09-0.128-0.1009-0.075-0.1025-0.0002-0.0295-0.0544
M-score -2.65-2.91-2.64-3.31-3.24-2.53-3.02-2.31-2.38-2.69

Accenture PLC Quarterly Data

Nov13Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16
DSRI 1.46161.05111.11241.10420.68020.64730.63310.96371.05431.0576
GMI 0.9830.991.00191.01621.02861.03651.03171.01951.01311.0038
AQI 1.22841.3991.35441.161.11971.02471.06071.1041.21091.1775
SGI 1.02241.01691.03231.04871.0621.07131.05411.03261.01911.022
DEPI 0.98781.00050.99850.98420.93540.91290.95360.98391.02891.0615
SGAI 1.01891.010.99050.96870.94170.92510.9440.96330.97870.9982
LVGI 0.97820.99320.97340.94050.97370.98981.01741.02641.01990.9461
TATA -0.0143-0.0189-0.0092-0.0295-0.0652-0.066-0.0692-0.0544-0.0418-0.0378
M-score -2.02-2.35-2.24-2.38-2.95-3.01-3.05-2.69-2.52-2.49
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