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CLVT (Clarivate) Beneish M-Score : -2.88 (As of Mar. 18, 2025)


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What is Clarivate 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 -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CLVT' s Beneish M-Score Range Over the Past 10 Years
Min: -2.88   Med: -2.53   Max: -1.5
Current: -2.88

During the past 8 years, the highest Beneish M-Score of Clarivate was -1.50. The lowest was -2.88. And the median was -2.53.


Clarivate Beneish M-Score Historical Data

The historical data trend for Clarivate'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.

Clarivate Beneish M-Score Chart

Clarivate Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Beneish M-Score
Get a 7-Day Free Trial -1.50 -2.35 -2.53 -2.69 -2.88

Clarivate Quarterly Data
Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24
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 -2.69 -2.76 -2.72 -2.76 -2.88

Competitive Comparison of Clarivate's Beneish M-Score

For the Information Technology Services subindustry, Clarivate'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.


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

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

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



Clarivate 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 Clarivate 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 * 0.9037+0.528 * 0.9929+0.404 * 1.0067+0.892 * 0.9726+0.115 * 0.997
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.011+4.679 * -0.057345-0.327 * 1.0402
=-2.88

* 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 (Dec24) TTM:Last Year (Dec23) TTM:
Total Receivables was $798 Mil.
Revenue was 663 + 622.2 + 650.3 + 621.2 = $2,557 Mil.
Gross Profit was 435.3 + 412.1 + 436.7 + 403.4 = $1,688 Mil.
Total Current Assets was $1,245 Mil.
Total Assets was $11,490 Mil.
Property, Plant and Equipment(Net PPE) was $107 Mil.
Depreciation, Depletion and Amortization(DDA) was $727 Mil.
Selling, General, & Admin. Expense(SGA) was $728 Mil.
Total Current Liabilities was $1,434 Mil.
Long-Term Debt & Capital Lease Obligation was $4,572 Mil.
Net Income was -191.8 + -65.6 + -304.3 + -75 = $-637 Mil.
Non Operating Income was -247.9 + -49.3 + -306.9 + -20.3 = $-624 Mil.
Cash Flow from Operations was 141.3 + 202.9 + 126.2 + 176.2 = $647 Mil.
Total Receivables was $908 Mil.
Revenue was 683.7 + 647.2 + 668.8 + 629.1 = $2,629 Mil.
Gross Profit was 452.1 + 426.6 + 444.6 + 399.4 = $1,723 Mil.
Total Current Assets was $1,462 Mil.
Total Assets was $12,707 Mil.
Property, Plant and Equipment(Net PPE) was $107 Mil.
Depreciation, Depletion and Amortization(DDA) was $708 Mil.
Selling, General, & Admin. Expense(SGA) was $740 Mil.
Total Current Liabilities was $1,600 Mil.
Long-Term Debt & Capital Lease Obligation was $4,784 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)
=(798.3 / 2556.7) / (908.3 / 2628.8)
=0.312238 / 0.345519
=0.9037

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)
=(1722.7 / 2628.8) / (1687.5 / 2556.7)
=0.655318 / 0.660031
=0.9929

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 - (1244.6 + 107.1) / 11490.2) / (1 - (1462.2 + 106.8) / 12706.8)
=0.882361 / 0.876523
=1.0067

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
=2556.7 / 2628.8
=0.9726

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))
=(708.3 / (708.3 + 106.8)) / (727 / (727 + 107.1))
=0.868973 / 0.871598
=0.997

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)
=(727.6 / 2556.7) / (740 / 2628.8)
=0.284586 / 0.281497
=1.011

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)
=((4571.9 + 1433.5) / 11490.2) / ((4784.3 + 1600) / 12706.8)
=0.522654 / 0.502432
=1.0402

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
=(-636.7 - -624.4 - 646.6) / 11490.2
=-0.057345

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.

Clarivate has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.


Clarivate Beneish M-Score Related Terms

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Clarivate Business Description

Traded in Other Exchanges
Address
70 St. Mary Axe, London, GBR, EC3A 8BE
Clarivate is a data, information, and software workflow solutions company serving customers primarily in academia, government, law, life sciences, and healthcare. The company was formerly part of Thomson Reuters before being sold to private equity as an independent company in 2016. In 2019, Clarivate went public on the New York Stock Exchange. Around half of the company's revenue is generated in the Americas while Europe, Middle East, and Africa account for around a quarter.
Executives
Michael J Angelakis director 40 MORRIS AVENUE, BRYN MAWR PA 19010
Bar Veinstein officer: President, A&G 70 ST. MARY AXE, LONDON X0 EC3 8BA
Saurabh Saha director C/O CENTESSA PHARMACEUTICALS PLC, 3RD FLOOR, 1 ASHLEY ROAD, ALTRINCHAM, CHESHIRE X0 WA14 2DT
Andrew Miles Snyder director 111 WEST 57TH STREET, 9TH FLOOR, NEW YORK NY 10019
Melanie Margolin officer: Chief Legal Officer 1000 SAGAMORE PARKWAY SOUTH, LAFAYETTE IN 47905
Henry Levy officer: President, LS&H 70 ST. MARY AXE, LONDON X0 EC3 8BA
James Gordon Samson officer: President, IP Group FRIARS HOUSE, 160 BLACKFRIARS ROAD, LONDON X0 SE 1 8EZ
Wendell E. Pritchett director TOLL BROTHERS, INC., 1140 VIRGINIA DRIVE, FORT WASHINGTON PA 19034
Jonathan Gear director, officer: Chief Executive Officer-Elect C/O IHS MARKIT LTD., 4TH FLOOR, ROPEMAKE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Michael M Easton officer: Senior VP, Finance/CAO 4TH FLOOR ROPEMAKER PLACE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Stefano Maestri officer: Chief Technology Officer 70 ST MARY AXE, LONDON X0 EC3 8BA
Jonathan Mark Collins officer: Executive Vice President/CFO 50196 VENICE COURT, NORTHVILLE MI 48168
Mukhtar Ahmed officer: President, Science Group FRIARS HOUSE, 160 BLACKFRIARS ROAD, LONDON X0 SEL 8EZ
Heather Matzke-hamlin officer: Acting Chief Acctg Officer 4TH FLOOR, ROPEMAKER PLACE, 25 ROPEMAKER STREET, LONDON X0 EC2Y 9LY
Steen Lomholt-thomsen officer: Chief Revenue Officer FRIARS HOUSE, 160 BLACKFRIARS ROAD, LONDON X0 SE1 8EZ