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Accenture PLC (NYSE:ACN)
Beneish M-Score
-2.45 (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 -2.45 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: -2.45

-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 -2.77.


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 * 1.1111+0.528 * 1.0057+0.404 * 1.1065+0.892 * 1.042+0.115 * 1.0289
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9714+4.679 * -0.039-0.327 * 0.9329
=-2.45

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

This Year (May16) TTM:Last Year (May15) TTM:
Accounts Receivable was $4,304 Mil.
Revenue was 8969.044 + 8397.053 + 8465.984 + 8364.511 = $34,197 Mil.
Gross Profit was 2689.552 + 2369.816 + 2562.519 + 2504.405 = $10,126 Mil.
Total Current Assets was $11,576 Mil.
Total Assets was $19,191 Mil.
Property, Plant and Equipment(Net PPE) was $884 Mil.
Depreciation, Depletion and Amortization(DDA) was $709 Mil.
Selling, General & Admin. Expense(SGA) was $5,417 Mil.
Total Current Liabilities was $8,161 Mil.
Long-Term Debt was $27 Mil.
Net Income was 897.247 + 1326.52 + 818.899 + 737.628 = $3,780 Mil.
Non Operating Income was -16.207 + 532.364 + 4.029 + -16.426 = $504 Mil.
Cash Flow from Operations was 1591.025 + 317.346 + 611.305 + 1504.586 = $4,024 Mil.
Accounts Receivable was $3,717 Mil.
Revenue was 8275.066 + 7931.59 + 8343.257 + 8267.319 = $32,817 Mil.
Gross Profit was 2524.905 + 2240.639 + 2539.29 + 2468.62 = $9,773 Mil.
Total Current Assets was $11,070 Mil.
Total Assets was $17,309 Mil.
Property, Plant and Equipment(Net PPE) was $752 Mil.
Depreciation, Depletion and Amortization(DDA) was $636 Mil.
Selling, General & Admin. Expense(SGA) was $5,352 Mil.
Total Current Liabilities was $7,888 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)
=(4303.642 / 34196.592) / (3717.048 / 32817.232)
=0.12585003 / 0.11326513
=1.1111

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)
=(9773.454 / 32817.232) / (10126.292 / 34196.592)
=0.2978147 / 0.29611992
=1.0057

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 - (11576.011 + 883.609) / 19191.047) / (1 - (11069.521 + 752.362) / 17308.727)
=0.35075872 / 0.3169987
=1.1065

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
=34196.592 / 32817.232
=1.042

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))
=(636.239 / (636.239 + 752.362)) / (709.4 / (709.4 + 883.609))
=0.45818705 / 0.44532077
=1.0289

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)
=(5417.437 / 34196.592) / (5351.828 / 32817.232)
=0.15842038 / 0.16307981
=0.9714

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)
=((26.801 + 8161.133) / 19191.047) / ((27.217 + 7888.442) / 17308.727)
=0.42665385 / 0.45732185
=0.9329

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
=(3780.294 - 503.76 - 4024.262) / 19191.047
=-0.039

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 -2.45 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

Feb14May14Aug14Nov14Feb15May15Aug15Nov15Feb16May16
DSRI 1.05111.11241.10420.68020.64730.63310.96371.05431.05761.1111
GMI 0.991.00191.01621.02861.03651.03171.01951.01311.00381.0057
AQI 1.3991.35441.161.11971.02471.06071.1041.21091.17751.1065
SGI 1.01691.03231.04871.0621.07131.05411.03261.01911.0221.042
DEPI 1.00050.99850.98420.93540.91290.95360.98391.02891.06151.0289
SGAI 1.010.99050.96870.94170.92510.9440.96330.97870.99820.9714
LVGI 0.99320.97340.94050.97370.98981.01741.02641.01990.94610.9329
TATA -0.0189-0.0092-0.0295-0.0652-0.066-0.0692-0.0544-0.0418-0.0378-0.039
M-score -2.35-2.24-2.38-2.95-3.01-3.05-2.69-2.52-2.49-2.45
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