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AFRM (Affirm Holdings) Beneish M-Score : -2.79 (As of Dec. 13, 2024)


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What is Affirm Holdings 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.

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:

AFRM' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91   Med: -2.67   Max: 5.03
Current: -2.79

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.


Affirm Holdings Beneish M-Score Historical Data

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.

* Premium members only.

Affirm Holdings Beneish M-Score Chart

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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 -2.80 -2.91 -2.87 -2.79

Competitive Comparison of Affirm Holdings's Beneish M-Score

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.


Affirm Holdings's Beneish M-Score Distribution in the Software Industry

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.



Affirm Holdings 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 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.


Affirm Holdings Beneish M-Score Related Terms

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Affirm Holdings Business Description

Traded in Other Exchanges
Address
650 California Street, San Francisco, CA, USA, 94108
Affirm Holdings Inc offers a platform for digital and mobile-first commerce. It comprises a point-of-sale payment solution for consumers, merchant commerce solutions, and a consumer-focused app. The firm generates its revenue from merchant networks, and through virtual card networks among others. Geographically, it generates a majority share of its revenue from the United States.
Executives
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