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Autodesk Inc (NAS:ADSK)
Beneish M-Score
-3.54 (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 -3.54 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: -3.54

-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 -2.92.


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 * 0.8213+0.528 * 1.019+0.404 * 1.0863+0.892 * 0.8731+0.115 * 1.0635
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1348+4.679 * -0.1602-0.327 * 1.1927
=-3.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Oct16) TTM:Last Year (Oct15) TTM:
Accounts Receivable was $260 Mil.
Revenue was 489.6 + 550.7 + 511.9 + 648.3 = $2,201 Mil.
Gross Profit was 408.1 + 465.6 + 419.4 + 553.4 = $1,847 Mil.
Total Current Assets was $2,332 Mil.
Total Assets was $4,829 Mil.
Property, Plant and Equipment(Net PPE) was $168 Mil.
Depreciation, Depletion and Amortization(DDA) was $141 Mil.
Selling, General & Admin. Expense(SGA) was $1,306 Mil.
Total Current Liabilities was $1,598 Mil.
Long-Term Debt was $1,490 Mil.
Net Income was -142.8 + -98.2 + -173 + -37.2 = $-451 Mil.
Non Operating Income was 0.3 + -3.9 + 0 + 2.1 = $-2 Mil.
Cash Flow from Operations was 7.7 + -18 + 164.4 + 169.9 = $324 Mil.
Accounts Receivable was $362 Mil.
Revenue was 599.8 + 609.5 + 646.5 + 664.6 = $2,520 Mil.
Gross Profit was 508.8 + 516.5 + 554.7 + 575.1 = $2,155 Mil.
Total Current Assets was $2,748 Mil.
Total Assets was $5,220 Mil.
Property, Plant and Equipment(Net PPE) was $155 Mil.
Depreciation, Depletion and Amortization(DDA) was $146 Mil.
Selling, General & Admin. Expense(SGA) was $1,319 Mil.
Total Current Liabilities was $1,311 Mil.
Long-Term Debt was $1,487 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)
=(259.8 / 2200.5) / (362.3 / 2520.4)
=0.11806408 / 0.14374702
=0.8213

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)
=(2155.1 / 2520.4) / (1846.5 / 2200.5)
=0.85506269 / 0.83912747
=1.019

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 - (2332.1 + 168.3) / 4829.2) / (1 - (2747.5 + 155.3) / 5220)
=0.48223308 / 0.44390805
=1.0863

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
=2200.5 / 2520.4
=0.8731

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))
=(145.7 / (145.7 + 155.3)) / (140.6 / (140.6 + 168.3))
=0.48405316 / 0.45516348
=1.0635

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)
=(1306.4 / 2200.5) / (1318.6 / 2520.4)
=0.59368325 / 0.52317093
=1.1348

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)
=((1489.9 + 1597.6) / 4829.2) / ((1486.9 + 1311.2) / 5220)
=0.63933985 / 0.53603448
=1.1927

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
=(-451.2 - -1.5 - 324) / 4829.2
=-0.1602

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 -3.54 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 local exchange's 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

Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16Jul16Oct16
DSRI 1.15931.16440.98030.87451.00780.93141.42890.87870.85550.8213
GMI 1.01981.02081.0181.01631.01521.01361.01391.02171.01831.019
AQI 1.1441.15731.1941.15710.95460.99291.00740.96731.10661.0863
SGI 1.03691.0611.10481.11771.07051.03540.99680.92330.91020.8731
DEPI 1.04111.04561.03990.99311.00370.97411.03351.06781.06611.0635
SGAI 1.05021.09161.08881.09331.08431.05571.02481.06221.07671.1348
LVGI 1.00461.04481.10341.05291.29481.30861.27881.34721.15241.1927
TATA -0.0894-0.1076-0.1226-0.1011-0.1446-0.1484-0.1368-0.1968-0.1487-0.1602
M-score -2.66-2.73-2.93-2.93-3.21-3.32-2.81-3.70-3.39-3.54
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