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Autodesk Inc (NAS:ADSK)
Beneish M-Score
-3.67 (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 -3.67 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: -3.67

-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 * 0.8787+0.528 * 1.0217+0.404 * 0.9673+0.892 * 0.9233+0.115 * 1.0678
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0622+4.679 * -0.1904-0.327 * 1.3472
=-3.67

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

This Year (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $256 Mil.
Revenue was 511.9 + 648.3 + 599.8 + 609.5 = $2,370 Mil.
Gross Profit was 419.4 + 553.4 + 508.8 + 516.5 = $1,998 Mil.
Total Current Assets was $2,629 Mil.
Total Assets was $5,206 Mil.
Property, Plant and Equipment(Net PPE) was $175 Mil.
Depreciation, Depletion and Amortization(DDA) was $145 Mil.
Selling, General & Admin. Expense(SGA) was $1,298 Mil.
Total Current Liabilities was $1,475 Mil.
Long-Term Debt was $1,488 Mil.
Net Income was -173 + -37.2 + -43.8 + -235.5 = $-490 Mil.
Non Operating Income was 0 + 2.1 + 3.3 + 4.6 = $10 Mil.
Cash Flow from Operations was 164.4 + 169.9 + 80.4 + 77.2 = $492 Mil.
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.



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)
=(256.4 / 2369.5) / (316 / 2566.2)
=0.10820848 / 0.12313927
=0.8787

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)
=(2211 / 2566.2) / (1998.1 / 2369.5)
=0.86158522 / 0.84325807
=1.0217

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 - (2629 + 174.9) / 5205.6) / (1 - (2341 + 156.9) / 4775.9)
=0.46136853 / 0.47697816
=0.9673

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
=2369.5 / 2566.2
=0.9233

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))
=(147.6 / (147.6 + 156.9)) / (145.4 / (145.4 + 174.9))
=0.48472906 / 0.45394942
=1.0678

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)
=(1297.8 / 2369.5) / (1323.2 / 2566.2)
=0.54771049 / 0.51562622
=1.0622

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)
=((1488.4 + 1474.5) / 5205.6) / ((747.4 + 1270.3) / 4775.9)
=0.5691755 / 0.42247534
=1.3472

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
=(-489.5 - 10 - 491.9) / 5205.6
=-0.1904

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 -3.67 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 0.95431.08660.76821.18411.00781.09311.20070.87020.98031.4289
GMI 1.00630.97520.99931.01950.98761.0030.99971.01991.0181.0139
AQI 0.74680.97441.2821.04760.89861.0721.00170.93111.1941.0074
SGI 1.20791.18051.0660.74021.13891.13521.04360.98341.10480.9968
DEPI 0.92561.03691.00230.8260.94271.05720.9971.05891.03991.0335
SGAI 1.05441.01011.00371.13510.92260.96111.01060.9871.06311.0248
LVGI 0.88791.03341.00120.87041.08460.94731.4050.95261.10341.2788
TATA -0.1596-0.1552-0.1672-0.0809-0.1143-0.0898-0.0722-0.0739-0.1276-0.1372
M-score -3.16-3.00-3.30-2.89-2.95-2.63-2.73-2.95-2.95-2.81

Autodesk Inc Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 0.87021.13021.15931.16440.98030.87451.00780.93141.42890.8787
GMI 1.01991.01891.01981.02081.0181.01631.01521.01361.01391.0217
AQI 0.93111.07191.1441.15731.1941.15710.95460.99291.00740.9673
SGI 0.98341.00091.03691.0611.10481.11771.07051.03540.99680.9233
DEPI 1.05891.04941.04111.04561.03990.99311.00370.97411.03351.0678
SGAI 1.00121.0121.05021.09161.08881.09331.08431.05571.02481.0622
LVGI 0.95260.99751.00461.04481.10341.05291.29481.30861.27881.3472
TATA -0.0739-0.0781-0.0894-0.1076-0.1226-0.1011-0.1384-0.142-0.1308-0.1904
M-score -2.96-2.68-2.66-2.73-2.93-2.93-3.18-3.29-2.78-3.67
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