Infosys (BUE:INFY) Beneish M-Score : -1.63 (As of Dec. 15, 2024)

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What is Infosys 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.

Warning Sign:

Beneish M-Score -1.63 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BUE:INFY' s Beneish M-Score Range Over the Past 10 Years
Min: -2.77 Med: -2.33 Max: -1.49
Current: -1.63

During the past 13 years, the highest Beneish M-Score of Infosys was -1.49. The lowest was -2.77. And the median was -2.33.

Infosys Beneish M-Score Historical Data

The historical data trend for Infosys'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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Infosys Beneish M-Score Chart

Infosys Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.48

-2.57

-2.44

-2.23

-1.49

Infosys 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															-1.76	-1.57	-1.49	-1.73	-1.63

Competitive Comparison of Infosys's Beneish M-Score

For the Information Technology Services subindustry, Infosys'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.

Infosys's Beneish M-Score Distribution in the Software Industry

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

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

Infosys 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 Infosys 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 * 0.8139

0.528 * 1.0109

0.404 * 0.9208

0.892 * 3.2438

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9814

4.679 * 0.155163

0.327 * 0.9522

0.07

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was ARS5,112,739 Mil.
Revenue was 4651746.796 + 4221386.94 + 3846012.565 + 1683343.002 = ARS14,402,489 Mil.
Gross Profit was 1420046.938 + 1302952.481 + 1133162.519 + 501429 = ARS4,357,591 Mil.
Total Current Assets was ARS10,155,142 Mil.
Total Assets was ARS16,090,063 Mil.
Property, Plant and Equipment(Net PPE) was ARS2,170,942 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS0 Mil.
Selling, General, & Admin. Expense(SGA) was ARS1,220,471 Mil.
Total Current Liabilities was ARS4,629,885 Mil.
Long-Term Debt & Capital Lease Obligation was ARS718,578 Mil.
Net Income was 738538.468 + 683266.49 + 807957.514 + 264613 = ARS2,494,375 Mil.
Non Operating Income was 0 + 78803.999 + -109525.002 + 28519 = ARS-2,202 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = ARS0 Mil.

Total Receivables was ARS1,936,623 Mil.
Revenue was 1651064.145 + 1108079.991 + 899840.271 + 781081.328 = ARS4,440,066 Mil.
Gross Profit was 506377.664 + 337439.997 + 274594.506 + 239571.843 = ARS1,357,984 Mil.
Total Current Assets was ARS3,247,186 Mil.
Total Assets was ARS5,490,366 Mil.
Property, Plant and Equipment(Net PPE) was ARS848,279 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS49,835 Mil.
Selling, General, & Admin. Expense(SGA) was ARS383,382 Mil.
Total Current Liabilities was ARS1,637,416 Mil.
Long-Term Debt & Capital Lease Obligation was ARS279,260 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)
	=	(5112739.275 / 14402489.303)	/	(1936623.353 / 4440065.735)
	=	0.35499	/	0.43617
	=	0.8139

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)
	=	(1357984.01 / 4440065.735)	/	(4357590.938 / 14402489.303)
	=	0.305848	/	0.302558
	=	1.0109

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 - (10155141.554 + 2170941.905) / 16090063.293)	/	(1 - (3247186.139 + 848278.823) / 5490365.701)
	=	0.233932	/	0.254063
	=	0.9208

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
	=	14402489.303	/	4440065.735
	=	3.2438

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))
	=	(49834.85 / (49834.85 + 848278.823))	/	(0 / (0 + 2170941.905))
	=	0.055488	/	0
	=	1

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)
	=	(1220471.479 / 14402489.303)	/	(383381.602 / 4440065.735)
	=	0.08474	/	0.086346
	=	0.9814

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)
	=	((718577.968 + 4629885.297) / 16090063.293)	/	((279260.108 + 1637416.095) / 5490365.701)
	=	0.332408	/	0.349098
	=	0.9522

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
	=	(2494375.472 - -2202.003	-	0)	/	16090063.293
	=	0.155163

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.

Infosys has a M-score of 0.07 signals that the company is likely to be a manipulator.

Infosys Beneish M-Score Related Terms

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Infosys Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » Infosys Ltd (BUE:INFY) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

INFY:USA INFY:India 500209:India 0XSE:UK IOY:Germany IOY:Germany IOY:Germany I1FO34:Brazil IOY:Austria

Address

44, Infosys Avenue, Hosur Road, Electronics City, Bengaluru, KA, IND, 560 100

Website

https://www.infosys.com

Infosys is a leading global IT services provider, with nearly 250,000 employees. Based in Bengaluru, the Indian IT services firm leverages its offshore outsourcing model to derive 60% of its revenue from North America. The company offers traditional IT services offerings: consulting, managed services and cloud infrastructure services, and business process outsourcing as a service.