Lam Research Beneish M-Score Historical Data
The historical data trend for Lam Research's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Lam Research Annual Data
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Trend |
Jun14 |
Jun15 |
Jun16 |
Jun17 |
Jun18 |
Jun19 |
Jun20 |
Jun21 |
Jun22 |
Jun23 |
| Beneish M-Score |
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-3.25 |
-2.09 |
-1.96 |
-1.67 |
-2.86 |
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Lam Research Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-1.81 |
-2.34 |
-2.86 |
-3.05 |
-3.28 |
Competitive Comparison
For the Semiconductor Equipment & Materials subindustry, Lam Research's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Lam Research Beneish M-Score Distribution
For the Semiconductors industry and Technology sector, Lam Research's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Lam Research's Beneish M-Score falls into.
Lam Research Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Lam Research 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 * 0.885 | + | 0.528 * 1.0017 | + | 0.404 * 1.0077 | + | 0.892 * 0.7516 | + | 0.115 * 1.0503 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.2726 | + | 4.679 * -0.093785 | - | 0.327 * 0.9914 |
| = | -3.28 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $2,707 Mil.
Revenue was 3758.259 + 3482.062 + 3207.257 + 3869.569 = $14,317 Mil.
Gross Profit was 1757.455 + 1654.702 + 1458.129 + 1605.612 = $6,476 Mil.
Total Current Assets was $13,055 Mil.
Total Assets was $18,784 Mil.
Property, Plant and Equipment(Net PPE) was $2,147 Mil.
Depreciation, Depletion and Amortization(DDA) was $363 Mil.
Selling, General, & Admin. Expense(SGA) was $829 Mil.
Total Current Liabilities was $4,272 Mil.
Long-Term Debt & Capital Lease Obligation was $4,980 Mil.
Net Income was 954.266 + 887.398 + 802.537 + 814.008 = $3,458 Mil.
Non Operating Income was 16.869 + -10.653 + -2.029 + -38.496 = $-34 Mil.
Cash Flow from Operations was 1453.84 + 951.163 + 1122.725 + 1726.438 = $5,254 Mil.
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Total Receivables was $4,070 Mil.
Revenue was 5277.569 + 5074.121 + 4635.554 + 4060.416 = $19,048 Mil.
Gross Profit was 2376.349 + 2336.835 + 2100.512 + 1816.625 = $8,630 Mil.
Total Current Assets was $13,709 Mil.
Total Assets was $19,206 Mil.
Property, Plant and Equipment(Net PPE) was $1,863 Mil.
Depreciation, Depletion and Amortization(DDA) was $333 Mil.
Selling, General, & Admin. Expense(SGA) was $867 Mil.
Total Current Liabilities was $4,547 Mil.
Long-Term Debt & Capital Lease Obligation was $4,996 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (2707.458 / 14317.147) | / | (4070.088 / 19047.66) |
| = | 0.189106 | / | 0.213679 |
| | = | 0.885 |
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) |
| = | (8630.321 / 19047.66) | / | (6475.898 / 14317.147) |
| = | 0.453091 | / | 0.452318 |
| | = | 1.0017 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (13054.612 + 2147.482) / 18783.852) | / | (1 - (13708.788 + 1863.155) / 19206.381) |
| = | 0.190683 | / | 0.189231 |
| | = | 1.0077 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 14317.147 | / | 19047.66 |
| | = | 0.7516 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (333.325 / (333.325 + 1863.155)) | / | (362.687 / (362.687 + 2147.482)) |
| = | 0.151754 | / | 0.144487 |
| | = | 1.0503 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (829.197 / 14317.147) | / | (866.832 / 19047.66) |
| = | 0.057916 | / | 0.045509 |
| | = | 1.2726 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((4980.005 + 4272.383) / 18783.852) | / | ((4996.057 + 4546.922) / 19206.381) |
| = | 0.492571 | / | 0.496865 |
| | = | 0.9914 |
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 |
| = | (3458.209 - -34.309 | - | 5254.166) | / | 18783.852 |
| | = | -0.093785 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Lam Research has a M-score of -3.28 suggests that the company is unlikely to be a manipulator.
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