Switch to:
Qualcomm Inc (NAS:QCOM)
Beneish M-Score
-3.04 (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.

Qualcomm Inc has a M-score of -3.04 suggests that the company is not a manipulator.

QCOM' s 10-Year Beneish M-Score Range
Min: -4.24   Max: 1.06
Current: -3.04

-4.24
1.06

During the past 13 years, the highest Beneish M-Score of Qualcomm Inc was 1.06. The lowest was -4.24. And the median was -2.57.


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 Qualcomm 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 * 0.9324+0.528 * 1.0092+0.404 * 0.9405+0.892 * 1.0092+0.115 * 0.9703
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.922+4.679 * -0.0041-0.327 * 2.4565
=-3.04

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $1,961 Mil.
Revenue was 5832 + 6894 + 7099 + 6692 = $26,517 Mil.
Gross Profit was 3381 + 4266 + 4052 + 3935 = $15,634 Mil.
Total Current Assets was $25,928 Mil.
Total Assets was $52,295 Mil.
Property, Plant and Equipment(Net PPE) was $2,574 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,185 Mil.
Selling, General & Admin. Expense(SGA) was $2,234 Mil.
Total Current Liabilities was $6,083 Mil.
Long-Term Debt was $9,913 Mil.
Net Income was 1184 + 1053 + 1972 + 1894 = $6,103 Mil.
Non Operating Income was 67 + -6 + 101 + 716 = $878 Mil.
Cash Flow from Operations was 2116 + -658 + 2364 + 1619 = $5,441 Mil.
Accounts Receivable was $2,084 Mil.
Revenue was 6806 + 6367 + 6622 + 6481 = $26,276 Mil.
Gross Profit was 4066 + 3885 + 3916 + 3767 = $15,634 Mil.
Total Current Assets was $22,408 Mil.
Total Assets was $48,355 Mil.
Property, Plant and Equipment(Net PPE) was $2,555 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,126 Mil.
Selling, General & Admin. Expense(SGA) was $2,401 Mil.
Total Current Liabilities was $6,021 Mil.
Long-Term Debt was $0 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)
=(1961 / 26517) / (2084 / 26276)
=0.07395256 / 0.07931192
=0.9324

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)
=(4266 / 26276) / (3381 / 26517)
=0.59499163 / 0.58958404
=1.0092

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 - (25928 + 2574) / 52295) / (1 - (22408 + 2555) / 48355)
=0.45497658 / 0.48375556
=0.9405

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
=26517 / 26276
=1.0092

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))
=(1126 / (1126 + 2555)) / (1185 / (1185 + 2574))
=0.30589514 / 0.31524342
=0.9703

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)
=(2234 / 26517) / (2401 / 26276)
=0.08424784 / 0.09137616
=0.922

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)
=((9913 + 6083) / 52295) / ((0 + 6021) / 48355)
=0.3058801 / 0.1245166
=2.4565

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
=(6103 - 878 - 5441) / 52295
=-0.0041

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.

Qualcomm Inc has a M-score of -3.04 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.

Qualcomm Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.80540.96990.86664.49640.18540.98910.99881.14931.12891.0571
GMI 0.98010.99991.01761.0060.99850.99311.03781.07161.03931.0143
AQI 1.08931.49450.97121.01951.04671.15491.031.0530.88520.9659
SGI 1.16251.32661.17871.2560.93481.05431.3621.27841.30051.0652
DEPI 1.18851.05540.8791.01280.82890.95880.71781.27580.94410.8017
SGAI 0.99231.33321.12360.92490.96940.91620.95020.91290.8530.8538
LVGI 1.03781.09051.30570.7641.09891.7450.81190.84890.92911.0808
TATA -0.0571-0.055-0.0381-0.001-0.1799-0.0362-0.0251-0.0058-0.0635-0.0442
M-score -2.75-2.35-2.761.06-4.16-2.79-2.21-1.97-2.37-2.61

Qualcomm Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.27491.23151.12890.64710.98760.94631.05711.59380.86820.9324
GMI 1.02251.02771.03921.05611.04521.03411.01421.00841.00331.0092
AQI 1.12091.090.88520.90150.89920.81270.96590.95610.99880.9405
SGI 1.24611.26611.30051.24511.18831.12991.06521.05871.06911.0092
DEPI 0.95460.92820.94410.84210.82570.82320.80170.9210.93320.9703
SGAI 0.92220.90390.85330.87180.8460.85410.85340.82590.86110.922
LVGI 0.88680.82650.92911.02851.11481.15921.08081.15171.0612.4565
TATA -0.0132-0.0301-0.0635-0.0812-0.0663-0.069-0.0418-0.03110.0014-0.0041
M-score -1.96-2.05-2.37-2.98-2.68-2.84-2.60-2.07-2.54-3.04
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK