GOOG 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 13 years, the highest Beneish M-Score of Alphabet Inc was -0.06. The lowest was -2.98. And the median was -2.60.
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 Alphabet 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 * 1.0962||+||0.528 * 0.989||+||0.404 * 0.9228||+||0.892 * 1.1496||+||0.115 * 1.1193|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.9249||+||4.679 * -0.0637||-||0.327 * 0.9978|
|This Year (Mar16) TTM:||Last Year (Mar15) TTM:|
|Accounts Receivable was $10,818 Mil.|
Revenue was 20257 + 21329 + 18675 + 17727 = $77,988 Mil.
Gross Profit was 12609 + 13141 + 11638 + 11144 = $48,532 Mil.
Total Current Assets was $90,955 Mil.
Total Assets was $149,747 Mil.
Property, Plant and Equipment(Net PPE) was $30,162 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,257 Mil.
Selling, General & Admin. Expense(SGA) was $15,381 Mil.
Total Current Liabilities was $17,684 Mil.
Long-Term Debt was $1,987 Mil.
Net Income was 4207 + 4923 + 3979 + 3409 = $16,518 Mil.
Non Operating Income was -453 + -428 + -50 + -83 = $-1,014 Mil.
Cash Flow from Operations was 7658 + 6415 + 6007 + 6985 = $27,065 Mil.
|Accounts Receivable was $8,584 Mil.
Revenue was 17258 + 18103 + 16523 + 15955 = $67,839 Mil.
Gross Profit was 10902 + 11182 + 9828 + 9841 = $41,753 Mil.
Total Current Assets was $80,313 Mil.
Total Assets was $133,400 Mil.
Property, Plant and Equipment(Net PPE) was $25,448 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,070 Mil.
Selling, General & Admin. Expense(SGA) was $14,466 Mil.
Total Current Liabilities was $14,336 Mil.
Long-Term Debt was $3,226 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)|
|=||(10818 / 77988)||/||(8584 / 67839)|
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)|
|=||(41753 / 67839)||/||(48532 / 77988)|
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 - (90955 + 30162) / 149747)||/||(1 - (80313 + 25448) / 133400)|
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))|
|=||(5070 / (5070 + 25448))||/||(5257 / (5257 + 30162))|
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)|
|=||(15381 / 77988)||/||(14466 / 67839)|
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)|
|=||((1987 + 17684) / 149747)||/||((3226 + 14336) / 133400)|
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|
|=||(16518 - -1014||-||27065)||/||149747|
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.
Alphabet Inc has a M-score of -2.57 suggests that the company will not 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
Alphabet Inc Annual Data
Alphabet Inc Quarterly Data