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CrowdStrike Holdings (NAS:CRWD) Beneish M-Score

: -3.01 (As of Today)
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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 -3.01 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CRWD' s Beneish M-Score Range Over the Past 10 Years
Min: -3.06   Med: -2.84   Max: -2.11
Current: -3.01

During the past 6 years, the highest Beneish M-Score of CrowdStrike Holdings was -2.11. The lowest was -3.06. And the median was -2.84.


CrowdStrike Holdings (NAS:CRWD) Beneish M-Score Historical Data

The historical data trend for CrowdStrike 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.

CrowdStrike Holdings Annual Data
Trend Jan17 Jan18 Jan19 Jan20 Jan21 Jan22
Beneish M-Score Premium Member Only - - -2.37 -2.85 -2.46

CrowdStrike Holdings Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.13 -2.83 -2.46 -2.88 -3.01

CrowdStrike Holdings (NAS:CRWD) Beneish M-Score Competitive Comparison

For the Software - Infrastructure subindustry, CrowdStrike 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.

   

CrowdStrike Holdings (NAS:CRWD) Beneish M-Score Distribution

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

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



CrowdStrike 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 CrowdStrike 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 * 0.9749+0.528 * 1.002+0.404 * 0.914+0.892 * 1.6118+0.115 * 1.0678
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9527+4.679 * -0.2247-0.327 * 0.9554
=-3.01

* 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 (Jul22) TTM:Last Year (Jul21) TTM:
Total Receivables was $419 Mil.
Revenue was 535.153 + 487.834 + 431.01 + 380.051 = $1,834 Mil.
Gross Profit was 394.586 + 361.002 + 318.39 + 278.387 = $1,352 Mil.
Total Current Assets was $2,976 Mil.
Total Assets was $4,154 Mil.
Property, Plant and Equipment(Net PPE) was $411 Mil.
Depreciation, Depletion and Amortization(DDA) was $80 Mil.
Selling, General, & Admin. Expense(SGA) was $1,024 Mil.
Total Current Liabilities was $1,649 Mil.
Long-Term Debt & Capital Lease Obligation was $762 Mil.
Net Income was -49.285 + -31.523 + -41.98 + -50.455 = $-173 Mil.
Non Operating Income was 11.107 + 3.212 + 1.679 + 0.69 = $17 Mil.
Cash Flow from Operations was 209.906 + 214.957 + 159.718 + 159.058 = $744 Mil.
Total Receivables was $267 Mil.
Revenue was 337.69 + 302.843 + 264.929 + 232.46 = $1,138 Mil.
Gross Profit was 247.258 + 224.338 + 198.197 + 170.933 = $841 Mil.
Total Current Assets was $2,252 Mil.
Total Assets was $3,136 Mil.
Property, Plant and Equipment(Net PPE) was $251 Mil.
Depreciation, Depletion and Amortization(DDA) was $53 Mil.
Selling, General, & Admin. Expense(SGA) was $667 Mil.
Total Current Liabilities was $1,137 Mil.
Long-Term Debt & Capital Lease Obligation was $768 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)
=(418.799 / 1834.048) / (266.54 / 1137.922)
=0.2283468 / 0.23423398
=0.9749

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)
=(840.726 / 1137.922) / (1352.365 / 1834.048)
=0.73882568 / 0.7373662
=1.002

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 - (2975.98 + 411.475) / 4154.236) / (1 - (2252.025 + 250.686) / 3136.045)
=0.1845781 / 0.2019531
=0.914

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
=1834.048 / 1137.922
=1.6118

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))
=(53.034 / (53.034 + 250.686)) / (80.444 / (80.444 + 411.475))
=0.17461478 / 0.16353099
=1.0678

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)
=(1024.442 / 1834.048) / (667.194 / 1137.922)
=0.55856881 / 0.58632666
=0.9527

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)
=((761.601 + 1649.25) / 4154.236) / ((768.15 + 1136.828) / 3136.045)
=0.58033559 / 0.607446
=0.9554

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
=(-173.243 - 16.688 - 743.639) / 4154.236
=-0.2247

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.

CrowdStrike Holdings has a M-score of -3.01 suggests that the company is unlikely to be a manipulator.


CrowdStrike Holdings Beneish M-Score Related Terms

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CrowdStrike Holdings (NAS:CRWD) Business Description

CrowdStrike Holdings logo
Traded in Other Exchanges
Address
150 Mathilda Place, Suite 300, Sunnyvale, CA, USA, 94086
CrowdStrike Holdings provides cybersecurity products and services aimed at protecting organizations from cyberthreats. It offers cloud-delivered protection across endpoints, cloud workloads, identity and data, and threat intelligence, managed security services, IT operations management, threat hunting, identity protection, and log management. CrowdStrike went public in 2019 and serves customers worldwide.
Executives
Saha Anurag officer: CHIEF ACCOUNTING OFFICER 206 E. 9TH STREET SUITE 1400 AUSTIN TX 78701
Schumacher Laura J director 1 N. WAUKEGAN ROAD NORTH CHICAGO IL 60064
Carpenter Michael J. officer: PRES., GLBAL SALES & FLD OPS CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Maheshwari Abhishek officer: CHIEF ACCOUNTING OFFICER CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Henry Shawn officer: Please see remarks CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Sexton Joseph E. director CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Alphabet Inc. 10 percent owner 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Black Colin officer: CHIEF OPERATING OFFICER CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVAL CA 94086
Podbere Burt W. officer: CHIEF FINANCIAL OFFICER CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Gandhi Sameer K director, 10 percent owner
Accel London Iii Lp 10 percent owner C/O ACCEL PARTNERS 428 UNIVERSITY AVENUE PALO ALTO CA 94301
Accel London Iii Associates L.l.c. 10 percent owner 428 UNIVERSITY AVENUE PALO ALTO CA 94301
Accel London Iii Associates L.p. 10 percent owner 500 UNIVERSITY AVENUE PALO ALTO CA 94301
Accel London Investors 2012 L.p. 10 percent owner 428 UNIVERSITY AVE PALO ALTO CA 94301
Accel Growth Fund Investors 2013 L.l.c. 10 percent owner 428 UNIVERSITY AVE PALO ALTO CA 94301

CrowdStrike Holdings (NAS:CRWD) Headlines

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