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Autodesk Inc (NAS:ADSK)
Beneish M-Score
-3.39 (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 -3.39 suggests that the company is not a manipulator.

ADSK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.71   Max: -1.6
Current: -3.39

-3.71
-1.6

During the past 13 years, the highest Beneish M-Score of Autodesk Inc was -1.60. 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 * 0.8555+0.528 * 1.0183+0.404 * 1.1066+0.892 * 0.9102+0.115 * 1.0661
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0767+4.679 * -0.1487-0.327 * 1.1524
=-3.39

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

This Year (Jul16) TTM:Last Year (Jul15) TTM:
Accounts Receivable was $307 Mil.
Revenue was 550.7 + 511.9 + 648.3 + 599.8 = $2,311 Mil.
Gross Profit was 465.6 + 419.4 + 553.4 + 508.8 = $1,947 Mil.
Total Current Assets was $2,487 Mil.
Total Assets was $5,047 Mil.
Property, Plant and Equipment(Net PPE) was $173 Mil.
Depreciation, Depletion and Amortization(DDA) was $142 Mil.
Selling, General & Admin. Expense(SGA) was $1,299 Mil.
Total Current Liabilities was $1,560 Mil.
Long-Term Debt was $1,489 Mil.
Net Income was -98.2 + -173 + -37.2 + -43.8 = $-352 Mil.
Non Operating Income was -3.9 + 0 + 2.1 + 3.3 = $2 Mil.
Cash Flow from Operations was -18 + 164.4 + 169.9 + 80.4 = $397 Mil.
Accounts Receivable was $394 Mil.
Revenue was 609.5 + 646.5 + 664.6 + 618 = $2,539 Mil.
Gross Profit was 516.5 + 554.7 + 575.1 + 532 = $2,178 Mil.
Total Current Assets was $2,900 Mil.
Total Assets was $5,342 Mil.
Property, Plant and Equipment(Net PPE) was $158 Mil.
Depreciation, Depletion and Amortization(DDA) was $147 Mil.
Selling, General & Admin. Expense(SGA) was $1,325 Mil.
Total Current Liabilities was $1,314 Mil.
Long-Term Debt was $1,486 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)
=(306.9 / 2310.7) / (394.1 / 2538.6)
=0.1328169 / 0.15524305
=0.8555

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)
=(2178.3 / 2538.6) / (1947.2 / 2310.7)
=0.85807138 / 0.84268836
=1.0183

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 - (2486.5 + 173) / 5047.4) / (1 - (2899.8 + 158.2) / 5341.8)
=0.47309506 / 0.42753379
=1.1066

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
=2310.7 / 2538.6
=0.9102

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))
=(146.6 / (146.6 + 158.2)) / (142.2 / (142.2 + 173))
=0.48097113 / 0.45114213
=1.0661

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)
=(1298.6 / 2310.7) / (1325 / 2538.6)
=0.5619942 / 0.52194123
=1.0767

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)
=((1489.2 + 1559.6) / 5047.4) / ((1486.2 + 1313.8) / 5341.8)
=0.60403376 / 0.52416788
=1.1524

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
=(-352.2 - 1.5 - 396.7) / 5047.4
=-0.1487

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 -3.39 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 1.05871.01011.00371.13510.92260.96110.97270.99111.09991.0248
LVGI 0.88791.03341.00120.87041.08460.94731.4050.95261.10341.2788
TATA -0.1596-0.1552-0.1672-0.0809-0.115-0.0899-0.0723-0.0739-0.1226-0.1372
M-score -3.17-3.00-3.30-2.89-2.96-2.63-2.72-2.95-2.94-2.81

Autodesk Inc Quarterly Data

Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16
DSRI 1.13021.15931.16440.98030.87451.00780.93141.42890.87870.8555
GMI 1.01891.01981.02081.0181.01631.01521.01361.01391.02171.0183
AQI 1.07191.1441.15731.1941.15710.95460.99291.00740.96731.1066
SGI 1.00091.03691.0611.10481.11771.07051.03540.99680.92330.9102
DEPI 1.04941.04111.04561.03990.99311.00370.97411.03351.06781.0661
SGAI 1.0121.05021.09161.08881.09331.08431.05571.02481.06221.0767
LVGI 0.99751.00461.04481.10341.05291.29481.30861.27881.34721.1524
TATA -0.0781-0.0894-0.1076-0.1226-0.1011-0.1446-0.1484-0.1368-0.1968-0.1487
M-score -2.68-2.66-2.73-2.93-2.93-3.21-3.32-2.81-3.70-3.39
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