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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.
Good Sign:
Beneish M-Score -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.
The historical rank and industry rank for Affirm Holdings's Beneish M-Score or its related term are showing as below:
During the past 6 years, the highest Beneish M-Score of Affirm Holdings was 5.03. The lowest was -2.91. And the median was -2.67.
The historical data trend for Affirm Holdings'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.
Affirm Holdings Annual Data | |||||||||||||||
Trend | Jun19 | Jun20 | Jun21 | Jun22 | Jun23 | Jun24 | |||||||||
Beneish M-Score | Get a 7-Day Free Trial | - | 5.03 | -2.86 | -2.56 | -2.87 |
Affirm Holdings Quarterly Data | ||||||||||||||||||||
Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | Sep24 | |
Beneish M-Score | Get a 7-Day Free Trial | -2.64 | -2.80 | -2.91 | -2.87 | -2.79 |
For the Software - Infrastructure subindustry, Affirm Holdings'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.
For the Software industry and Technology sector, Affirm Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Affirm Holdings's Beneish M-Score falls into.
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 Affirm Holdings 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 * 0.9419 | + | 0.528 * 0.7424 | + | 0.404 * 0.7622 | + | 0.892 * 1.4655 | + | 0.115 * 1.1264 | |
- | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI | |||||||
- | 0.172 * 0.6313 | + | 4.679 * -0.107047 | - | 0.327 * 1.0425 | |||||||
= | -2.79 |
* 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 (Sep24) TTM: | Last Year (Sep23) TTM: |
Total Receivables was $6,285 Mil. Revenue was 698.479 + 659.185 + 576.157 + 591.11 = $2,525 Mil. Gross Profit was 469.043 + 445.788 + 363.12 + 381.074 = $1,659 Mil. Total Current Assets was $8,799 Mil. Total Assets was $10,139 Mil. Property, Plant and Equipment(Net PPE) was $493 Mil. Depreciation, Depletion and Amortization(DDA) was $176 Mil. Selling, General, & Admin. Expense(SGA) was $1,098 Mil. Total Current Liabilities was $136 Mil. Long-Term Debt & Capital Lease Obligation was $7,120 Mil. Net Income was -100.222 + -45.136 + -133.936 + -166.902 = $-446 Mil. Non Operating Income was 34.558 + 29.477 + 22.54 + 4.493 = $91 Mil. Cash Flow from Operations was 196.867 + 68.763 + 208.152 + 74.321 = $548 Mil. |
Total Receivables was $4,554 Mil. Revenue was 496.547 + 445.825 + 380.978 + 399.558 = $1,723 Mil. Gross Profit was 287.911 + 222.26 + 153.957 + 176.303 = $840 Mil. Total Current Assets was $7,119 Mil. Total Assets was $8,407 Mil. Property, Plant and Equipment(Net PPE) was $366 Mil. Depreciation, Depletion and Amortization(DDA) was $154 Mil. Selling, General, & Admin. Expense(SGA) was $1,187 Mil. Total Current Liabilities was $89 Mil. Long-Term Debt & Capital Lease Obligation was $5,682 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) |
= | (6285.257 / 2524.931) | / | (4553.588 / 1722.908) | |
= | 2.489279 | / | 2.642966 | |
= | 0.9419 |
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) | |
= | (840.431 / 1722.908) | / | (1659.025 / 2524.931) | |
= | 0.487798 | / | 0.657058 | |
= | 0.7424 |
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 - (8798.67 + 492.718) / 10139.159) | / | (1 - (7118.907 + 365.976) / 8407.149) | |
= | 0.083614 | / | 0.1097 | |
= | 0.7622 |
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 | |
= | 2524.931 | / | 1722.908 | |
= | 1.4655 |
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)) |
= | (153.883 / (153.883 + 365.976)) | / | (175.633 / (175.633 + 492.718)) | |
= | 0.296009 | / | 0.262786 | |
= | 1.1264 |
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) |
= | (1098.211 / 2524.931) | / | (1187.033 / 1722.908) | |
= | 0.434947 | / | 0.688971 | |
= | 0.6313 |
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) |
= | ((7119.908 + 136.067) / 10139.159) | / | ((5682.158 + 89.107) / 8407.149) | |
= | 0.715639 | / | 0.686471 | |
= | 1.0425 |
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 | |
= | (-446.196 - 91.068 | - | 548.103) | / | 10139.159 | |
= | -0.107047 |
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.
Affirm Holdings has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.
Thank you for viewing the detailed overview of Affirm Holdings's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.
Libor Michalek | officer: President, Technology | C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108 |
Katherine Adkins | officer: Chief Legal Officer | C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108 |
Noel Bertram Watson | director | 400 1ST AVENUE, C/O TRIPADVISOR, INC., NEEDHAM MA 02494 |
Christa S Quarles | director | 351 PHELPS, IRVING TX 75038 |
Keith Rabois | director | C/O YELP! INC., 706 MISSION ST., SAN FRANCISCO CA 94103 |
Michael Linford | officer: Chief Financial Officer | 3000 HANOVER STREET, PALO ALTO CA 94304 |
Gic Private Ltd | 10 percent owner | 168 ROBINSON ROAD, #37-01 CAPITAL TOWER, SINGAPORE U0 068912 |
Rodriquez Manuel Sanchez | director | C/O FANNIE MAE, 1100 15TH STREET, NW, WASHINGTON DC 20005 |
Jenny J Ming | director | |
Jacqueline D Reses | director | C/O SQUARE, INC., 1455 MARKET STREET #600, SAN FRANCISCO CA 94103 |
James D White | director | C/O CAVA GROUP, INC., 202-400-2920 14 RIDGE SQUARE NW, SUITE 5, WASHINGTON DC 20016 |
Jeremy Philips | director | C/O TRIPADVISOR, INC., 141 NEEDHAM STREET, NEWTON MA 02464 |
Jeremy Liew | director | 2200 SAND HILL ROAD, MENLO PARK CA 94025 |
Siphelele Jiyane | officer: Vice President, Controller | C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108 |
Silvija Martincevic | officer: Chief Commercial Officer | C/O AFFIRM HOLDINGS, INC., 650 CALIFORNIA STREET, SAN FRANCISCO CA 94108 |
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