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Autodesk Inc (NAS:ADSK)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

ADSK' s 10-Year Beneish M-Score Range
Min: -3.71   Max: -1.85
Current: -2.68

-3.71
-1.85

During the past 13 years, the highest Beneish M-Score of Autodesk Inc was -1.85. The lowest was -3.71. And the median was -2.90.


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 * 1.1302+0.528 * 1.0189+0.404 * 1.0719+0.892 * 1.0009+0.115 * 1.0494
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0066+4.679 * -0.0773-0.327 * 0.9975
=-2.68

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $323 Mil.
Revenue was 592.5 + 586.6 + 555.2 + 561.7 = $2,296 Mil.
Gross Profit was 513.8 + 514.7 + 488.1 + 493.9 = $2,011 Mil.
Total Current Assets was $2,590 Mil.
Total Assets was $4,649 Mil.
Property, Plant and Equipment(Net PPE) was $142 Mil.
Depreciation, Depletion and Amortization(DDA) was $132 Mil.
Selling, General & Admin. Expense(SGA) was $1,119 Mil.
Total Current Liabilities was $1,119 Mil.
Long-Term Debt was $747 Mil.
Net Income was 28.3 + 53.9 + 57.6 + 61.7 = $202 Mil.
Non Operating Income was 0 + 0 + 2.9 + 0 = $3 Mil.
Cash Flow from Operations was 218.7 + 183.5 + 90.6 + 65.3 = $558 Mil.
Accounts Receivable was $286 Mil.
Revenue was 570.4 + 606.9 + 548 + 568.7 = $2,294 Mil.
Gross Profit was 502.9 + 544.9 + 490.1 + 508.9 = $2,047 Mil.
Total Current Assets was $2,511 Mil.
Total Assets was $4,290 Mil.
Property, Plant and Equipment(Net PPE) was $129 Mil.
Depreciation, Depletion and Amortization(DDA) was $132 Mil.
Selling, General & Admin. Expense(SGA) was $1,111 Mil.
Total Current Liabilities was $980 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)
=(323.3 / 2296) / (285.8 / 2294)
=0.1408101 / 0.12458588
=1.1302

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)
=(514.7 / 2294) / (513.8 / 2296)
=0.89224063 / 0.87565331
=1.0189

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 - (2590.3 + 142.1) / 4648.6) / (1 - (2511.1 + 129) / 4289.7)
=0.41221013 / 0.38454904
=1.0719

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
=2296 / 2294
=1.0009

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))
=(131.7 / (131.7 + 129)) / (131.9 / (131.9 + 142.1))
=0.50517837 / 0.48138686
=1.0494

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)
=(1119.4 / 2296) / (1111.1 / 2294)
=0.48754355 / 0.48435048
=1.0066

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)
=((746.6 + 1118.7) / 4648.6) / ((745.8 + 979.8) / 4289.7)
=0.40126059 / 0.40226589
=0.9975

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
=(201.5 - 2.9 - 558.1) / 4648.6
=-0.0773

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 -2.68 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 0.91011.07570.95431.08660.76821.18411.00781.09311.20070.8702
GMI 0.97880.97171.00630.97520.99931.01950.98761.0030.99971.0199
AQI 0.73281.61820.73210.97091.28661.04760.89861.0721.00170.9311
SGI 1.29651.23461.20791.18051.0660.74021.13891.13521.04360.9834
DEPI 1.00751.02820.92561.03691.00230.8260.94271.05720.9971.0589
SGAI 0.89740.9791.05441.01011.00371.13510.92260.96111.01060.987
LVGI 1.10460.89110.85761.05790.9781.02760.91870.94731.4050.9526
TATA -0.1428-0.0731-0.169-0.1554-0.1139-0.0809-0.1143-0.0898-0.0722-0.0728
M-score -3.10-2.27-3.20-3.01-3.05-2.94-2.90-2.63-2.73-2.95

Autodesk Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.97741.10071.05931.20070.94330.84511.03840.87021.13021.1593
GMI 1.00321.00230.99950.99971.00591.01021.01521.01991.01891.0198
AQI 1.06381.10281.15691.00170.98050.96880.83320.93111.07191.144
SGI 1.13481.10551.06831.04361.0080.99510.99850.98341.00091.0369
DEPI 0.94820.96281.00460.9971.06131.04011.05171.05891.04941.0411
SGAI 0.96360.97110.9921.01061.0110.99980.98940.9871.00661.025
LVGI 0.93470.961.06121.4051.52411.50921.36450.95260.99751.0046
TATA -0.0869-0.0797-0.0966-0.0718-0.096-0.0887-0.0654-0.0722-0.0773-0.0895
M-score -2.74-2.61-2.77-2.73-3.15-3.21-2.92-2.94-2.68-2.65
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