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Autodesk Inc (NAS:ADSK)
Beneish M-Score
-2.65 (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 -2.66 suggests that the company is not a manipulator.

ADSK' s 10-Year Beneish M-Score Range
Min: -3.71   Max: -1.62
Current: -2.65

-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 -2.91.


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 * 1.1593+0.528 * 1.0198+0.404 * 1.144+0.892 * 1.0369+0.115 * 1.0411
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.025+4.679 * -0.0902-0.327 * 1.0046
=-2.66

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

This Year (Jul14) TTM:Last Year (Jul13) TTM:
Accounts Receivable was $365 Mil.
Revenue was 637.1 + 592.5 + 586.6 + 555.2 = $2,371 Mil.
Gross Profit was 549.2 + 513.8 + 514.7 + 488.1 = $2,066 Mil.
Total Current Assets was $2,450 Mil.
Total Assets was $4,703 Mil.
Property, Plant and Equipment(Net PPE) was $147 Mil.
Depreciation, Depletion and Amortization(DDA) was $137 Mil.
Selling, General & Admin. Expense(SGA) was $1,169 Mil.
Total Current Liabilities was $1,157 Mil.
Long-Term Debt was $747 Mil.
Net Income was 31.3 + 28.3 + 53.9 + 57.6 = $171 Mil.
Non Operating Income was 0 + -4.2 + 7.6 + 2.9 = $6 Mil.
Cash Flow from Operations was 96.2 + 218.7 + 183.5 + 90.6 = $589 Mil.
Accounts Receivable was $304 Mil.
Revenue was 561.7 + 570.4 + 606.9 + 548 = $2,287 Mil.
Gross Profit was 493.9 + 502.9 + 544.9 + 490.1 = $2,032 Mil.
Total Current Assets was $2,437 Mil.
Total Assets was $4,223 Mil.
Property, Plant and Equipment(Net PPE) was $133 Mil.
Depreciation, Depletion and Amortization(DDA) was $135 Mil.
Selling, General & Admin. Expense(SGA) was $1,100 Mil.
Total Current Liabilities was $956 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)
=(365.3 / 2371.4) / (303.9 / 2287)
=0.15404402 / 0.1328815
=1.1593

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)
=(513.8 / 2287) / (549.2 / 2371.4)
=0.88841277 / 0.87113098
=1.0198

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 - (2450 + 146.9) / 4703.4) / (1 - (2436.5 + 133.4) / 4223.3)
=0.4478675 / 0.3914948
=1.144

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
=2371.4 / 2287
=1.0369

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))
=(134.8 / (134.8 + 133.4)) / (137.1 / (137.1 + 146.9))
=0.50260999 / 0.48274648
=1.0411

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)
=(1168.8 / 2371.4) / (1099.7 / 2287)
=0.49287341 / 0.48084827
=1.025

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)
=((746.8 + 1157.3) / 4703.4) / ((746 + 955.9) / 4223.3)
=0.4048348 / 0.40297871
=1.0046

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
=(171.1 - 6.3 - 589) / 4703.4
=-0.0902

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 -2.66 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

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
DSRI 0.97741.10071.05931.20070.94330.84511.03840.87021.13021.1593
GMI 1.00321.00230.99950.99971.00591.01021.01521.01991.01891.0198
AQI 1.06381.10281.15691.00170.98050.96880.83320.93111.07191.144
SGI 1.13481.10551.06831.04361.0080.99510.99850.98341.00091.0369
DEPI 0.94820.96281.00460.9971.06131.04011.05171.05891.04941.0411
SGAI 0.96360.97110.9921.01061.0110.99980.98940.9871.00661.025
LVGI 0.93470.961.06121.4051.52411.50921.36450.95260.99751.0046
TATA -0.0879-0.0807-0.097-0.0722-0.0961-0.0888-0.0661-0.0739-0.0781-0.0902
M-score -2.74-2.61-2.77-2.73-3.15-3.21-2.93-2.95-2.68-2.66
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