Dell (DELL) Beneish M-Score : 0.00 (As of Jun. 04, 2024)

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What is Dell 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.

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

During the past 13 years, the highest Beneish M-Score of Dell was 0.00. The lowest was 0.00. And the median was 0.00.

Dell Beneish M-Score Historical Data

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

Dell Annual Data

Trend

Jan04

Jan05

Jan06

Jan07

Jan08

Jan09

Jan10

Jan11

Jan12

Jan13

Beneish M-Score

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-2.59

-2.31

-2.55

-2.64

-2.43

Dell Quarterly Data
	Oct08	Jan09	Apr09	Jul09	Oct09	Jan10	Apr10	Jul10	Oct10	Jan11	Apr11	Jul11	Oct11	Jan12	Apr12	Jul12	Oct12	Jan13	Apr13	Jul13
Beneish M-Score	Get a 7-Day Free Trial															-2.35	-2.47	-2.43	-2.51	-2.75

Competitive Comparison of Dell's Beneish M-Score

For the Computer Hardware subindustry, Dell'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.

Dell's Beneish M-Score Distribution in the Hardware Industry

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

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

Dell 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 Dell 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 * 1.035

0.528 * 1.0741

0.404 * 1.0916

0.892 * 0.939

0.115 * 0.9103

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0793

4.679 * -0.0666

0.327 * 0.9717

-2.75

This Year (Jul13) TTM:

Last Year (Jul12) TTM:

Total Receivables was $9,722.00 Mil.
Revenue was 14514 + 14074 + 14314 + 13721 = $56,623.00 Mil.
Gross Profit was 2689 + 2747 + 3109 + 2872 = $11,417.00 Mil.
Total Current Assets was $26,866.00 Mil.
Total Assets was $45,871.00 Mil.
Property, Plant and Equipment(Net PPE) was $2,212.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,265.00 Mil.
Selling, General, & Admin. Expense(SGA) was $8,422.00 Mil.
Total Current Liabilities was $22,756.00 Mil.
Long-Term Debt & Capital Lease Obligation was $4,075.00 Mil.
Net Income was 204 + 130 + 530 + 475 = $1,339.00 Mil.
Non Operating Income was -15 + -24 + 4 + 6 = $-29.00 Mil.
Cash Flow from Operations was 1678 + -39 + 1441 + 1343 = $4,423.00 Mil.

Total Receivables was $10,003.00 Mil.
Revenue was 14483 + 14422 + 16031 + 15365 = $60,301.00 Mil.
Gross Profit was 3138 + 3067 + 3385 + 3469 = $13,059.00 Mil.
Total Current Assets was $27,250.00 Mil.
Total Assets was $44,097.00 Mil.
Property, Plant and Equipment(Net PPE) was $2,058.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,019.00 Mil.
Selling, General, & Admin. Expense(SGA) was $8,310.00 Mil.
Total Current Liabilities was $20,712.00 Mil.
Long-Term Debt & Capital Lease Obligation was $5,832.00 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)
	=	(9722 / 56623)	/	(10003 / 60301)
	=	0.171697	/	0.165884
	=	1.035

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)
	=	(13059 / 60301)	/	(11417 / 56623)
	=	0.216564	/	0.201632
	=	1.0741

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 - (26866 + 2212) / 45871)	/	(1 - (27250 + 2058) / 44097)
	=	0.366092	/	0.335374
	=	1.0916

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
	=	56623	/	60301
	=	0.939

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))
	=	(1019 / (1019 + 2058))	/	(1265 / (1265 + 2212))
	=	0.331167	/	0.363819
	=	0.9103

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)
	=	(8422 / 56623)	/	(8310 / 60301)
	=	0.148738	/	0.137809
	=	1.0793

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)
	=	((4075 + 22756) / 45871)	/	((5832 + 20712) / 44097)
	=	0.584923	/	0.601946
	=	0.9717

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
	=	(1339 - -29	-	4423)	/	45871
	=	-0.0666

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.

Dell has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.

Dell Beneish M-Score Related Terms

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Dell (DELL) Business Description

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Address

Website

http://www.dell.com

Dell Inc is a Delaware Corporation, which was founded in 1984. The Company offers a range of technology solutions, including servers and networking products, storage products, services, software and peripherals, mobility products, and desktop PCs. The Company sells its products and services directly to customers through dedicated distribution channels, such as retailers, distributors, and resellers. Its business segments are Large Enterprise, Public, Small and Medium Business ('SMB'), and Consumer. Large Enterprise customers include large global and national corporate businesses. Public customers, which include educational institutions, government, health care, and law enforcement agencies, operate in their own communities. SMB segment is focused on helping small and medium-sized businesses get the most out of their technology by offering scalable products, services, and solutions. Consumer segment is focused on delivering what customers want from the total technology experience of entertainment, mobility, gaming, and design. The Company designs, develops, manufactures, markets, sells, and supports a range of products, solutions, and services. The Company also provides various customer financial services to its Commercial and Consumer customers. Its enterprise solutions include servers, networking, and storage products. The Company's services include a range of configurable IT and business services, including infrastructure technology, consulting and applications, and product-related support services. The Company offers Dell-branded printers and displays and a multitude of competitively priced third-party peripheral products such as printers, televisions, notebook accessories, mice, keyboards, networking and wireless products, digital cameras, and other products. The Company also sells a range of third-party software products, including operating systems, business and office applications, anti-virus and related security software, entertainment software, and products in various other categories. Client Products offers a variety of mobility and desktop products, including notebooks, workstations, tablets, smartphones, and desktop PCs, to its Commercial and Consumer customers. The Company offers or arranges various financing options and services for its Commercial and Consumer customers in the U.S. and Canada through Dell Financial Services ('DFS'). DFS offers a range of financial services, including originating, collecting, and servicing customer receivables related to the purchase of Dell products. DFS offers private label credit financing programs to qualified Consumer and Commercial customers and offers leases and fixed-term financing to Commercial customers. The Company sells its products and services directly to customers and through various other sales distribution channels, such as retailers, third-party solution providers, system integrators, and third-party resellers. Its customers include large global and national corpora