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Autodesk Inc (NAS:ADSK)
Beneish M-Score
-2.95 (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 -2.95 suggests that the company is not a manipulator.

ADSK' s 10-Year Beneish M-Score Range
Min: -3.71   Max: -1.62
Current: -2.95

-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 -2.92.


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 * 0.8745+0.528 * 1.0163+0.404 * 1.1571+0.892 * 1.1177+0.115 * 0.9931
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.084+4.679 * -0.1075-0.327 * 1.0529
=-2.95

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

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $316 Mil.
Revenue was 646.5 + 664.6 + 618 + 637.1 = $2,566 Mil.
Gross Profit was 554.7 + 575.1 + 532 + 549.2 = $2,211 Mil.
Total Current Assets was $2,341 Mil.
Total Assets was $4,776 Mil.
Property, Plant and Equipment(Net PPE) was $157 Mil.
Depreciation, Depletion and Amortization(DDA) was $148 Mil.
Selling, General & Admin. Expense(SGA) was $1,323 Mil.
Total Current Liabilities was $1,270 Mil.
Long-Term Debt was $747 Mil.
Net Income was 19.1 + 11.5 + 10.7 + 31.3 = $73 Mil.
Non Operating Income was 2.3 + 8.1 + -0.2 + 0 = $10 Mil.
Cash Flow from Operations was 86.5 + 257.2 + 136 + 96.2 = $576 Mil.
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 $1,092 Mil.
Total Current Liabilities was $1,119 Mil.
Long-Term Debt was $747 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)
=(316 / 2566.2) / (323.3 / 2296)
=0.12313927 / 0.1408101
=0.8745

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)
=(575.1 / 2296) / (554.7 / 2566.2)
=0.87565331 / 0.86158522
=1.0163

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 - (2341 + 156.9) / 4775.9) / (1 - (2590.3 + 142.1) / 4648.6)
=0.47697816 / 0.41221013
=1.1571

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
=2566.2 / 2296
=1.1177

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))
=(131.9 / (131.9 + 142.1)) / (147.6 / (147.6 + 156.9))
=0.48138686 / 0.48472906
=0.9931

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)
=(1323.2 / 2566.2) / (1092.1 / 2296)
=0.51562622 / 0.47565331
=1.084

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)
=((747.4 + 1270.3) / 4775.9) / ((746.6 + 1118.7) / 4648.6)
=0.42247534 / 0.40126059
=1.0529

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
=(72.6 - 10.2 - 575.9) / 4775.9
=-0.1075

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 -2.95 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

Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14Jan15
DSRI 1.07040.96311.08660.76821.18411.00781.09311.20070.87020.9803
GMI 0.97111.00730.97520.99931.01950.98761.0030.99971.01991.018
AQI 1.58620.74680.97441.2821.04760.89861.0721.00170.93111.1954
SGI 1.24081.19691.18051.0660.74021.13891.13521.04360.98341.1048
DEPI 1.02760.92561.03691.00230.8260.94271.05720.9971.05891.0399
SGAI 0.96891.05871.01011.00371.13510.92260.96111.01060.9541.0999
LVGI 0.87750.88791.03341.00121.02760.91870.94731.4050.95261.1046
TATA -0.0699-0.169-0.1552-0.1672-0.0809-0.115-0.0899-0.0722-0.0728-0.1275
M-score -2.26-3.21-3.00-3.30-2.94-2.90-2.63-2.73-2.94-2.96

Autodesk Inc Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 1.20070.94330.84511.03840.87021.13021.15931.16440.98030.8745
GMI 0.99971.00591.01021.01521.01991.01891.01981.02081.0181.0163
AQI 1.00170.98050.96880.83320.93111.07191.1441.15731.19541.1571
SGI 1.04361.0080.99510.99850.98341.00091.03691.0611.10481.1177
DEPI 0.9971.06131.04011.05171.05891.04941.04111.04561.03990.9931
SGAI 1.01061.0110.99980.98270.97210.9821.00111.04031.07931.084
LVGI 1.4051.52411.50921.36450.95260.99751.00461.04481.10461.0529
TATA -0.0722-0.0961-0.0888-0.0661-0.0728-0.077-0.0891-0.1074-0.1282-0.1075
M-score -2.73-3.15-3.21-2.92-2.95-2.67-2.65-2.72-2.96-2.95
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