Applied Materials (BSP:A1MT34) Beneish M-Score : -2.69 (As of Dec. 14, 2024)

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What is Applied Materials 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 -2.69 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:A1MT34' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.49 Max: -1.77
Current: -2.69

During the past 13 years, the highest Beneish M-Score of Applied Materials was -1.77. The lowest was -2.91. And the median was -2.49.

Applied Materials Beneish M-Score Historical Data

The historical data trend for Applied Materials'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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Applied Materials Beneish M-Score Chart

Applied Materials Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

Beneish M-Score

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-2.39

-1.77

-2.12

-2.91

-2.69

Applied Materials Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
Beneish M-Score	Get a 7-Day Free Trial															-2.91	-2.84	-2.66	-2.55	-2.69

Competitive Comparison of Applied Materials's Beneish M-Score

For the Semiconductor Equipment & Materials subindustry, Applied Materials'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.

Applied Materials's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Applied Materials's Beneish M-Score distribution charts can be found below:

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

Applied Materials 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 Applied Materials 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 * 0.9637

0.528 * 0.9844

0.404 * 1.0496

0.892 * 1.084

0.115 * 1.3767

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0738

4.679 * -0.043025

0.327 * 0.9506

-2.58

This Year (Oct24) TTM:

Last Year (Oct23) TTM:

Total Receivables was R$29,456 Mil.
Revenue was 39647.851 + 37575.876 + 34093.98 + 32986.367 = R$144,304 Mil.
Gross Profit was 18768.713 + 17767.879 + 16174.89 + 15757.913 = R$68,469 Mil.
Total Current Assets was R$119,422 Mil.
Total Assets was R$193,647 Mil.
Property, Plant and Equipment(Net PPE) was R$18,791 Mil.
Depreciation, Depletion and Amortization(DDA) was R$2,086 Mil.
Selling, General, & Admin. Expense(SGA) was R$9,508 Mil.
Total Current Liabilities was R$47,656 Mil.
Long-Term Debt & Capital Lease Obligation was R$30,728 Mil.
Net Income was 9741.722 + 9452.179 + 8833.86 + 9929.846 = R$37,958 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = R$0 Mil.
Cash Flow from Operations was 14491.585 + 13221.963 + 7140.96 + 11434.815 = R$46,289 Mil.

Total Receivables was R$28,197 Mil.
Revenue was 33990.816 + 30843.213 + 33292.545 + 34990.236 = R$133,117 Mil.
Gross Profit was 16022.147 + 14286.288 + 15536.521 + 16329.469 = R$62,174 Mil.
Total Current Assets was R$96,805 Mil.
Total Assets was R$155,363 Mil.
Property, Plant and Equipment(Net PPE) was R$16,184 Mil.
Depreciation, Depletion and Amortization(DDA) was R$2,581 Mil.
Selling, General, & Admin. Expense(SGA) was R$8,168 Mil.
Total Current Liabilities was R$37,272 Mil.
Long-Term Debt & Capital Lease Obligation was R$28,884 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)
	=	(29455.905 / 144304.074)	/	(28196.754 / 133116.81)
	=	0.204124	/	0.21182
	=	0.9637

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)
	=	(62174.425 / 133116.81)	/	(68469.395 / 144304.074)
	=	0.467067	/	0.47448
	=	0.9844

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 - (119421.916 + 18791.224) / 193646.97)	/	(1 - (96805.317 + 16183.936) / 155362.751)
	=	0.286262	/	0.272739
	=	1.0496

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
	=	144304.074	/	133116.81
	=	1.084

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))
	=	(2580.972 / (2580.972 + 16183.936))	/	(2085.755 / (2085.755 + 18791.224))
	=	0.137542	/	0.099907
	=	1.3767

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)
	=	(9507.556 / 144304.074)	/	(8168.088 / 133116.81)
	=	0.065886	/	0.06136
	=	1.0738

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)
	=	((30727.788 + 47656.21) / 193646.97)	/	((28884.357 + 37272.095) / 155362.751)
	=	0.404778	/	0.425819
	=	0.9506

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
	=	(37957.607 - 0	-	46289.323)	/	193646.97
	=	-0.043025

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.

Applied Materials has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.

Applied Materials Beneish M-Score Related Terms

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Applied Materials Business Description

Industry

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Traded in Other Exchanges

AMAT:USA AMAT:Mexico 1AMAT:Italy AP2d:UK 0R1A:UK AP2:Germany AP2:Germany AP2:Germany AP2:Germany AMAT:Austria AMAT:Argentina

Address

3050 Bowers Avenue, P.O. Box 58039, Santa Clara, CA, USA, 95052-8039

Website

https://www.appliedmaterials.com

Applied Materials is the largest semiconductor wafer fabrication equipment, or WFE, manufacturer in the world. Applied Materials has a broad portfolio spanning nearly every corner of the WFE ecosystem. Specifically, Applied Materials holds a market share leadership position in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.

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