Switch to:
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: -3.51   Max: -2.16
Current: -2.95

-3.51
-2.16

During the past 13 years, the highest Beneish M-Score of Autodesk, Inc. was -2.16. The lowest was -3.51. And the median was -2.93.


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 * 0.8702+0.528 * 1.0199+0.404 * 0.9311+0.892 * 0.9834+0.115 * 1.0589
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.987+4.679 * -0.0739-0.327 * 0.9526
=-2.95

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $424 Mil.
Revenue was 586.6 + 555.2 + 561.7 + 570.4 = $2,274 Mil.
Gross Profit was 514.7 + 488.1 + 493.9 + 502.9 = $2,000 Mil.
Total Current Assets was $2,835 Mil.
Total Assets was $4,595 Mil.
Property, Plant and Equipment(Net PPE) was $130 Mil.
Depreciation, Depletion and Amortization(DDA) was $129 Mil.
Selling, General & Admin. Expense(SGA) was $1,091 Mil.
Total Current Liabilities was $1,072 Mil.
Long-Term Debt was $746 Mil.
Net Income was 53.9 + 57.6 + 61.7 + 55.6 = $229 Mil.
Non Operating Income was 7.6 + 2.9 + 0.1 + -5.7 = $5 Mil.
Cash Flow from Operations was 183.5 + 90.6 + 65.3 + 224.1 = $564 Mil.
Accounts Receivable was $495 Mil.
Revenue was 606.9 + 548 + 568.7 + 588.6 = $2,312 Mil.
Gross Profit was 544.9 + 490.1 + 508.9 + 529.8 = $2,074 Mil.
Total Current Assets was $2,552 Mil.
Total Assets was $4,308 Mil.
Property, Plant and Equipment(Net PPE) was $115 Mil.
Depreciation, Depletion and Amortization(DDA) was $128 Mil.
Selling, General & Admin. Expense(SGA) was $1,124 Mil.
Total Current Liabilities was $1,044 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)
=(423.7 / 2273.9) / (495.1 / 2312.2)
=0.18633185 / 0.21412508
=0.8702

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)
=(488.1 / 2312.2) / (514.7 / 2273.9)
=0.89685148 / 0.87937024
=1.0199

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 - (2835 + 130.3) / 4595) / (1 - (2552.4 + 114.9) / 4308.4)
=0.35466812 / 0.38090707
=0.9311

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
=2273.9 / 2312.2
=0.9834

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))
=(127.8 / (127.8 + 114.9)) / (128.9 / (128.9 + 130.3))
=0.52657602 / 0.49729938
=1.0589

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)
=(1090.9 / 2273.9) / (1123.9 / 2312.2)
=0.47974845 / 0.48607387
=0.987

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)
=((746.4 + 1071.5) / 4595) / ((745.6 + 1043.7) / 4308.4)
=0.39562568 / 0.41530499
=0.9526

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
=(228.8 - 4.9 - 563.5) / 4595
=-0.0739

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

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 0.90631.07040.96311.08660.76821.18411.00781.09311.20070.8702
GMI 0.97840.97111.00730.97520.99931.01950.98761.0030.99971.0199
AQI 0.73281.58620.74680.97441.2821.04760.89861.0721.00170.9311
SGI 1.30191.24081.19691.18051.0660.74021.13891.13521.04360.9834
DEPI 1.0081.02760.92561.03691.00230.8260.94271.05720.9971.0589
SGAI 0.90310.96891.05871.01011.00371.13510.92260.96111.01060.987
LVGI 1.08350.87750.88791.03341.00121.02760.91870.94731.4050.9526
TATA -0.1432-0.0699-0.169-0.1552-0.1672-0.0809-0.115-0.0899-0.0722-0.0739
M-score -3.10-2.26-3.21-3.00-3.30-2.94-2.90-2.63-2.73-2.95

Autodesk, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 0.94371.09310.97741.10071.05931.20070.94330.84511.03840.8702
GMI 0.99981.0031.00321.00230.99950.99971.00591.01021.01521.0199
AQI 1.00871.0721.06381.10281.15691.00170.98050.96880.83320.9311
SGI 1.1441.13521.13481.10551.06831.04361.0080.99510.99850.9834
DEPI 1.06971.05720.94820.96281.00460.9971.06131.04011.05171.0589
SGAI 0.98140.96110.96360.97110.9921.01061.0110.99980.98940.987
LVGI 0.95120.94730.93470.961.06121.4051.52411.50921.36450.9526
TATA -0.0991-0.0896-0.0879-0.0807-0.097-0.0722-0.0961-0.0888-0.0661-0.0739
M-score -2.84-2.63-2.74-2.61-2.77-2.73-3.15-3.21-2.93-2.95
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide