Switch to:
Autodesk Inc (NAS:ADSK)
Beneish M-Score
-2.73 (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 -2.73 suggests that the company is not a manipulator.

ADSK' s 10-Year Beneish M-Score Range
Min: -3.71   Max: -1.62
Current: -2.73

-3.71
-1.62

During the past 13 years, the highest Beneish M-Score of Autodesk Inc was -1.62. The lowest was -3.71. And the median was -2.91.


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 * 1.1644+0.528 * 1.0208+0.404 * 1.1573+0.892 * 1.061+0.115 * 1.0456
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0812+4.679 * -0.1084-0.327 * 1.0448
=-2.73

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Accounts Receivable was $376 Mil.
Revenue was 618 + 637.1 + 592.5 + 586.6 = $2,434 Mil.
Gross Profit was 532 + 549.2 + 513.8 + 514.7 = $2,110 Mil.
Total Current Assets was $2,459 Mil.
Total Assets was $4,737 Mil.
Property, Plant and Equipment(Net PPE) was $160 Mil.
Depreciation, Depletion and Amortization(DDA) was $143 Mil.
Selling, General & Admin. Expense(SGA) was $1,254 Mil.
Total Current Liabilities was $1,193 Mil.
Long-Term Debt was $747 Mil.
Net Income was 10.7 + 31.3 + 28.3 + 53.9 = $124 Mil.
Non Operating Income was -0.2 + 0 + -4.2 + 7.6 = $3 Mil.
Cash Flow from Operations was 136 + 96.2 + 218.7 + 183.5 = $634 Mil.
Accounts Receivable was $304 Mil.
Revenue was 555.2 + 561.7 + 570.4 + 606.9 = $2,294 Mil.
Gross Profit was 488.1 + 493.9 + 502.9 + 544.9 = $2,030 Mil.
Total Current Assets was $2,518 Mil.
Total Assets was $4,322 Mil.
Property, Plant and Equipment(Net PPE) was $134 Mil.
Depreciation, Depletion and Amortization(DDA) was $130 Mil.
Selling, General & Admin. Expense(SGA) was $1,093 Mil.
Total Current Liabilities was $948 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)
=(375.7 / 2434.2) / (304.1 / 2294.2)
=0.15434229 / 0.13255165
=1.1644

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)
=(549.2 / 2294.2) / (532 / 2434.2)
=0.88475286 / 0.86669132
=1.0208

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 - (2458.7 + 160.4) / 4736.8) / (1 - (2517.9 + 134.1) / 4321.5)
=0.44707397 / 0.38632419
=1.1573

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
=2434.2 / 2294.2
=1.061

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))
=(130.4 / (130.4 + 134.1)) / (143.1 / (143.1 + 160.4))
=0.49300567 / 0.47149918
=1.0456

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)
=(1253.7 / 2434.2) / (1092.9 / 2294.2)
=0.51503574 / 0.47637521
=1.0812

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 + 1193.3) / 4736.8) / ((746.2 + 948.1) / 4321.5)
=0.40962253 / 0.39206294
=1.0448

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
=(124.2 - 3.2 - 634.4) / 4736.8
=-0.1084

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 -2.73 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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.90631.07040.96311.08660.76821.18411.00781.09311.20070.8702
GMI 0.97840.97111.00730.97520.99931.01950.98761.0030.99971.0199
AQI 0.73281.58620.74680.97441.2821.04760.89861.0721.00170.9311
SGI 1.30191.24081.19691.18051.0660.74021.13891.13521.04360.9834
DEPI 1.0081.02760.92561.03691.00230.8260.94271.05720.9971.0589
SGAI 0.90310.96891.05871.01011.00371.13510.92260.96111.01060.987
LVGI 1.08350.87750.88791.03341.00121.02760.91870.94731.4050.9526
TATA -0.1432-0.0699-0.169-0.1552-0.1672-0.0809-0.115-0.0899-0.0722-0.0739
M-score -3.10-2.26-3.21-3.00-3.30-2.94-2.90-2.63-2.73-2.95

Autodesk Inc Quarterly Data

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 1.10071.05931.20070.94330.84511.03840.87021.13021.15931.1644
GMI 1.00230.99950.99971.00591.01021.01521.01991.01891.01981.0208
AQI 1.10281.15691.00170.98050.96880.83320.93111.07191.1441.1573
SGI 1.10551.06831.04361.0080.99510.99850.98341.00091.03691.061
DEPI 0.96281.00460.9971.06131.04011.05171.05891.04941.04111.0456
SGAI 0.97110.9921.01061.0110.99980.98271.00521.02471.04261.0812
LVGI 0.961.06121.4051.52411.50921.36450.95260.99751.00461.0448
TATA -0.0807-0.097-0.0722-0.0961-0.0888-0.0661-0.0739-0.0781-0.0902-0.1084
M-score -2.61-2.77-2.73-3.15-3.21-2.92-2.96-2.68-2.66-2.73
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)
Free 7-day Trial
FEEDBACK