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Autodesk Inc (NAS:ADSK)
Beneish M-Score
-2.96 (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.

Autodesk Inc has a M-score of -2.96 suggests that the company is not a manipulator.

ADSK' s 10-Year Beneish M-Score Range
Min: -3.51   Max: -2.16
Current: -2.96

-3.51
-2.16

During the past 13 years, the highest Beneish M-Score of Autodesk Inc was -2.16. The lowest was -3.51. And the median was -2.94.


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 Autodesk 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 * 0.9803+0.528 * 1.018+0.404 * 1.1954+0.892 * 1.1048+0.115 * 1.0399
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0722+4.679 * -0.1282-0.327 * 1.1046
=-2.96

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

This Year (Jan15) TTM:Last Year (Jan14) TTM:
Accounts Receivable was $459 Mil.
Revenue was 664.6 + 618 + 637.1 + 592.5 = $2,512 Mil.
Gross Profit was 575.1 + 532 + 549.2 + 513.8 = $2,170 Mil.
Total Current Assets was $2,671 Mil.
Total Assets was $4,914 Mil.
Property, Plant and Equipment(Net PPE) was $159 Mil.
Depreciation, Depletion and Amortization(DDA) was $146 Mil.
Selling, General & Admin. Expense(SGA) was $1,292 Mil.
Total Current Liabilities was $1,400 Mil.
Long-Term Debt was $747 Mil.
Net Income was 11.5 + 10.7 + 31.3 + 28.3 = $82 Mil.
Non Operating Income was 8.1 + -0.2 + 0 + -4.2 = $4 Mil.
Cash Flow from Operations was 257.2 + 136 + 96.2 + 218.7 = $708 Mil.
Accounts Receivable was $424 Mil.
Revenue was 586.6 + 555.2 + 561.7 + 570.4 = $2,274 Mil.
Gross Profit was 514.7 + 488.1 + 493.9 + 502.9 = $2,000 Mil.
Total Current Assets was $2,835 Mil.
Total Assets was $4,595 Mil.
Property, Plant and Equipment(Net PPE) was $130 Mil.
Depreciation, Depletion and Amortization(DDA) was $129 Mil.
Selling, General & Admin. Expense(SGA) was $1,091 Mil.
Total Current Liabilities was $1,072 Mil.
Long-Term Debt was $746 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)
=(458.9 / 2512.2) / (423.7 / 2273.9)
=0.18266858 / 0.18633185
=0.9803

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)
=(532 / 2273.9) / (575.1 / 2512.2)
=0.87937024 / 0.86382454
=1.018

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 - (2671.3 + 159.2) / 4913.8) / (1 - (2835 + 130.3) / 4595)
=0.42396923 / 0.35466812
=1.1954

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
=2512.2 / 2273.9
=1.1048

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))
=(128.9 / (128.9 + 130.3)) / (145.9 / (145.9 + 159.2))
=0.49729938 / 0.47820387
=1.0399

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)
=(1292.2 / 2512.2) / (1090.9 / 2273.9)
=0.51436988 / 0.47974845
=1.0722

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)
=((747.2 + 1400.1) / 4913.8) / ((746.4 + 1071.5) / 4595)
=0.43699377 / 0.39562568
=1.1046

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
=(81.8 - 3.7 - 708.1) / 4913.8
=-0.1282

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.

Autodesk Inc has a M-score of -2.96 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.

Autodesk Inc Annual Data

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1.07040.96311.08660.76821.18411.00781.09311.20070.87020.9803
GMI 0.97111.00730.97520.99931.01950.98761.0030.99971.01991.018
AQI 1.58620.74680.97441.2821.04760.89861.0721.00170.93111.1954
SGI 1.24081.19691.18051.0660.74021.13891.13521.04360.98341.1048
DEPI 1.02760.92561.03691.00230.8260.94271.05720.9971.05891.0399
SGAI 0.96891.05871.01011.00371.13510.92260.96111.01060.9871.0631
LVGI 0.87750.88791.03341.00121.02760.91870.94731.4050.95261.1046
TATA -0.0699-0.169-0.1552-0.1672-0.0809-0.1143-0.0898-0.0722-0.0739-0.1275
M-score -2.26-3.21-3.00-3.30-2.94-2.90-2.63-2.73-2.95-2.95

Autodesk Inc Quarterly Data

Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15
DSRI 1.05931.20070.94330.84511.03840.87021.13021.15931.16440.9803
GMI 0.99950.99971.00591.01021.01521.01991.01891.01981.02081.018
AQI 1.15691.00170.98050.96880.83320.93111.07191.1441.15731.1954
SGI 1.06831.04361.0080.99510.99850.98341.00091.03691.0611.1048
DEPI 1.00460.9971.06131.04011.05171.05891.04941.04111.04561.0399
SGAI 0.9921.01061.0110.99980.98940.9871.00661.0251.05031.0722
LVGI 1.06121.4051.52411.50921.36450.95260.99751.00461.04481.1046
TATA -0.0966-0.0718-0.096-0.0887-0.0654-0.0739-0.0781-0.0902-0.1084-0.1282
M-score -2.77-2.73-3.15-3.21-2.92-2.95-2.68-2.66-2.73-2.96
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