Wirecard AG (XSWX:WDI) Beneish M-Score : 0.00 (As of Jun. 14, 2024)

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What is Wirecard AG Beneish M-Score?

The zones of discrimination for M-Score is as such:

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.

The historical rank and industry rank for Wirecard AG's Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Wirecard AG was 0.00. The lowest was 0.00. And the median was 0.00.

Wirecard AG Beneish M-Score Historical Data

The historical data trend for Wirecard AG'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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Wirecard AG Beneish M-Score Chart

Wirecard AG Annual Data

Trend

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Beneish M-Score

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-3.02

-2.44

-1.85

-2.44

Wirecard AG Quarterly Data
	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19
Beneish M-Score	Get a 7-Day Free Trial															-2.19	-	-	-	-3.09

Competitive Comparison of Wirecard AG's Beneish M-Score

For the Software - Application subindustry, Wirecard AG'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.

Wirecard AG's Beneish M-Score Distribution in the Software Industry

For the Software industry and Technology sector, Wirecard AG's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Wirecard AG's Beneish M-Score falls into.

Wirecard AG 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 Wirecard AG for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9188

0.528 * 1.0098

0.404 * 0.771

0.892 * 1.2962

0.115 * 1.09

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.4901

4.679 * -0.089323

0.327 * 1.0543

-3.06

This Year (Sep19) TTM:

Last Year (Sep18) TTM:

Total Receivables was CHF1,269 Mil.
Revenue was 798.044 + 717.835 + 640.659 + 672.664 = CHF2,829 Mil.
Gross Profit was 386.421 + 339.716 + 311.342 + 323.863 = CHF1,361 Mil.
Total Current Assets was CHF5,503 Mil.
Total Assets was CHF7,638 Mil.
Property, Plant and Equipment(Net PPE) was CHF115 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF163 Mil.
Selling, General, & Admin. Expense(SGA) was CHF63 Mil.
Total Current Liabilities was CHF3,061 Mil.
Long-Term Debt & Capital Lease Obligation was CHF1,854 Mil.
Net Income was 162.773 + 146.693 + 120.173 + 107.202 = CHF537 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = CHF0 Mil.
Cash Flow from Operations was 230.631 + 199.721 + -1.47 + 790.248 = CHF1,219 Mil.

Total Receivables was CHF1,066 Mil.
Revenue was 604.368 + 541.146 + 491.417 + 545.712 = CHF2,183 Mil.
Gross Profit was 285.067 + 264.848 + 232.733 + 277.878 = CHF1,061 Mil.
Total Current Assets was CHF3,784 Mil.
Total Assets was CHF5,870 Mil.
Property, Plant and Equipment(Net PPE) was CHF71 Mil.
Depreciation, Depletion and Amortization(DDA) was CHF126 Mil.
Selling, General, & Admin. Expense(SGA) was CHF19 Mil.
Total Current Liabilities was CHF2,211 Mil.
Long-Term Debt & Capital Lease Obligation was CHF1,371 Mil.

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)
	=	(1269.124 / 2829.202)	/	(1065.582 / 2182.643)
	=	0.44858	/	0.488207
	=	0.9188

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)
	=	(1060.526 / 2182.643)	/	(1361.342 / 2829.202)
	=	0.485891	/	0.481175
	=	1.0098

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 - (5502.63 + 114.661) / 7638.421)	/	(1 - (3784.279 + 70.956) / 5869.796)
	=	0.2646	/	0.343208
	=	0.771

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
	=	2829.202	/	2182.643
	=	1.2962

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))
	=	(125.887 / (125.887 + 70.956))	/	(162.795 / (162.795 + 114.661))
	=	0.63953	/	0.586742
	=	1.09

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)
	=	(62.73 / 2829.202)	/	(19.434 / 2182.643)
	=	0.022172	/	0.008904
	=	2.4901

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)
	=	((1853.884 + 3060.605) / 7638.421)	/	((1370.873 + 2211.159) / 5869.796)
	=	0.643391	/	0.610248
	=	1.0543

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
	=	(536.841 - 0	-	1219.13)	/	7638.421
	=	-0.089323

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.

Wirecard AG has a M-score of -3.06 suggests that the company is unlikely to be a manipulator.

Wirecard AG Beneish M-Score Related Terms

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Wirecard AG (XSWX:WDI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Wirecard AG (XSWX:WDI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

Einsteinring 35, Aschheim, DEU, 85609

Website

https://www.wirecard.com

Wirecard AG is a Germany-based provider of software solutions to the financial services industry. The firm's operations are organized in three segments: Payment Processing and Risk Management, which offers electronic payment processing services; Acquiring and Issuing, which issues credit cards and statements for payments and transactions; and Call Center and Communication Services, which offers relationship management services to corporate customers. The firm has operations in Europe, the United States, and the Asia-Pacific region.