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Autodesk Inc (NAS:ADSK)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

ADSK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.51   Max: -2.14
Current: -2.78

-3.51
-2.14

During the past 13 years, the highest Beneish M-Score of Autodesk Inc was -2.14. The lowest was -3.51. And the median was -2.92.


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 * 1.4289+0.528 * 1.0139+0.404 * 1.0074+0.892 * 0.9968+0.115 * 1.0335
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0248+4.679 * -0.1312-0.327 * 1.2788
=-2.78

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

This Year (Jan16) TTM:Last Year (Jan15) TTM:
Accounts Receivable was $654 Mil.
Revenue was 648.3 + 599.8 + 609.5 + 646.5 = $2,504 Mil.
Gross Profit was 553.4 + 508.8 + 516.5 + 554.7 = $2,133 Mil.
Total Current Assets was $2,993 Mil.
Total Assets was $5,515 Mil.
Property, Plant and Equipment(Net PPE) was $169 Mil.
Depreciation, Depletion and Amortization(DDA) was $146 Mil.
Selling, General & Admin. Expense(SGA) was $1,309 Mil.
Total Current Liabilities was $1,591 Mil.
Long-Term Debt was $1,488 Mil.
Net Income was -37.2 + -43.8 + -235.5 + 19.1 = $-297 Mil.
Non Operating Income was 2.1 + 3.3 + 4.6 + 2.3 = $12 Mil.
Cash Flow from Operations was 169.9 + 80.4 + 77.2 + 86.5 = $414 Mil.
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 $4,910 Mil.
Property, Plant and Equipment(Net PPE) was $159 Mil.
Depreciation, Depletion and Amortization(DDA) was $146 Mil.
Selling, General & Admin. Expense(SGA) was $1,281 Mil.
Total Current Liabilities was $1,400 Mil.
Long-Term Debt was $743 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)
=(653.6 / 2504.1) / (458.9 / 2512.2)
=0.26101194 / 0.18266858
=1.4289

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)
=(508.8 / 2512.2) / (553.4 / 2504.1)
=0.86382454 / 0.85196278
=1.0139

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 - (2993.1 + 169.3) / 5515.3) / (1 - (2671.3 + 159.2) / 4909.7)
=0.42661324 / 0.4234882
=1.0074

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
=2504.1 / 2512.2
=0.9968

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))
=(145.9 / (145.9 + 159.2)) / (145.8 / (145.8 + 169.3))
=0.47820387 / 0.46271025
=1.0335

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)
=(1308.9 / 2504.1) / (1281.3 / 2512.2)
=0.52270277 / 0.51003105
=1.0248

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)
=((1487.7 + 1591) / 5515.3) / ((743.1 + 1400.1) / 4909.7)
=0.5582108 / 0.43652362
=1.2788

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
=(-297.4 - 12.3 - 414) / 5515.3
=-0.1312

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 -2.78 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

Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15Jan16
DSRI 0.96311.08660.76821.18411.00781.09311.20070.87020.98031.4289
GMI 1.00730.97520.99931.01950.98761.0030.99971.01991.0181.0139
AQI 0.74680.97441.2821.04760.89861.0721.00170.93111.1941.0074
SGI 1.19691.18051.0660.74021.13891.13521.04360.98341.10480.9968
DEPI 0.92561.03691.00230.8260.94271.05720.9971.05891.03991.0335
SGAI 1.05871.01011.00371.13510.92260.96111.01060.9871.06311.0248
LVGI 0.88791.03341.00120.87041.08460.94731.4050.95261.10341.2788
TATA -0.1596-0.1552-0.1672-0.0809-0.1143-0.0898-0.0722-0.0739-0.1276-0.1372
M-score -3.17-3.00-3.30-2.89-2.95-2.63-2.73-2.95-2.95-2.81

Autodesk Inc Quarterly Data

Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16
DSRI 1.03840.87021.13021.15931.16440.98030.87451.00780.93141.4289
GMI 1.01521.01991.01891.01981.02081.0181.01631.01521.01361.0139
AQI 0.83320.93111.07191.1441.15731.1941.15710.95460.99291.0074
SGI 0.99850.98341.00091.03691.0611.10481.11771.07051.03540.9968
DEPI 1.05171.05891.04941.04111.04561.03990.99311.00370.97411.0335
SGAI 0.93651.00121.0121.05021.09161.08881.09331.08431.05571.0248
LVGI 1.36450.95260.99751.00461.04481.10341.05291.29481.30861.2788
TATA -0.0663-0.0739-0.0781-0.0894-0.1076-0.1226-0.1016-0.1388-0.1425-0.1312
M-score -2.92-2.96-2.68-2.66-2.73-2.93-2.93-3.18-3.29-2.78
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