AVGO has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 10 years, the highest Beneish M-Score of Broadcom Ltd was -1.59. The lowest was -3.16. And the median was -2.54.
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 Broadcom Ltd 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 * 1.1031||+||0.528 * 1.1605||+||0.404 * 1.6026||+||0.892 * 1.9402||+||0.115 * 0.7248|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.8548||+||4.679 * -0.1006||-||0.327 * 0.6922|
|This Year (Oct16) TTM:||Last Year (Oct15) TTM:|
|Accounts Receivable was $2,181 Mil.|
Revenue was 4136 + 3792 + 3541 + 1771 = $13,240 Mil.
Gross Profit was 2171 + 1782 + 1046 + 941 = $5,940 Mil.
Total Current Assets was $7,125 Mil.
Total Assets was $49,966 Mil.
Property, Plant and Equipment(Net PPE) was $2,509 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,042 Mil.
Selling, General & Admin. Expense(SGA) was $806 Mil.
Total Current Liabilities was $3,078 Mil.
Long-Term Debt was $13,188 Mil.
Net Income was -632 + -298 + -1186 + 377 = $-1,739 Mil.
Non Operating Income was -50 + -17 + -59 + 3 = $-123 Mil.
Cash Flow from Operations was 1352 + 963 + 622 + 474 = $3,411 Mil.
|Accounts Receivable was $1,019 Mil.
Revenue was 1840 + 1735 + 1614 + 1635 = $6,824 Mil.
Gross Profit was 997 + 884 + 846 + 826 = $3,553 Mil.
Total Current Assets was $3,759 Mil.
Total Assets was $10,515 Mil.
Property, Plant and Equipment(Net PPE) was $1,460 Mil.
Depreciation, Depletion and Amortization(DDA) was $962 Mil.
Selling, General & Admin. Expense(SGA) was $486 Mil.
Total Current Liabilities was $1,119 Mil.
Long-Term Debt was $3,826 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(2181 / 13240)||/||(1019 / 6824)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(3553 / 6824)||/||(5940 / 13240)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (7125 + 2509) / 49966)||/||(1 - (3759 + 1460) / 10515)|
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.
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))|
|=||(962 / (962 + 1460))||/||(3042 / (3042 + 2509))|
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)|
|=||(806 / 13240)||/||(486 / 6824)|
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)|
|=||((13188 + 3078) / 49966)||/||((3826 + 1119) / 10515)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-1739 - -123||-||3411)||/||49966|
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.
Broadcom Ltd has a M-score of -1.60 signals that the company is likely to be a manipulator.
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
Broadcom Ltd Annual Data
Broadcom Ltd Quarterly Data