Gartner Beneish M-Score Historical Data
The historical data trend for Gartner'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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Gartner Annual Data
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Trend |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
| Beneish M-Score |
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|
|
|
|
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-1.66 |
-2.60 |
-2.50 |
-2.95 |
-2.89 |
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Gartner Quarterly Data
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Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
| Beneish M-Score |
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|
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-3.05 |
-2.89 |
-2.90 |
-2.79 |
-2.75 |
Competitive Comparison
For the Information Technology Services subindustry, Gartner'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.
Gartner Beneish M-Score Distribution
For the Software industry and Technology sector, Gartner's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Gartner's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.
Gartner 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 Gartner 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 * 0.9288 | + | 0.528 * 0.9988 | + | 0.404 * 1.033 | + | 0.892 * 1.1623 | + | 0.115 * 0.8987 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0691 | + | 4.679 * -0.0666 | - | 0.327 * 1.0811 |
| = | -2.75 |
* 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 (Sep22) TTM: | Last Year (Sep21) TTM: |
Total Receivables was $1,047 Mil.
Revenue was 1331.868 + 1376.521 + 1262.74 + 1306.323 = $5,277 Mil.
Gross Profit was 915.031 + 951.986 + 885.707 + 906.736 = $3,659 Mil.
Total Current Assets was $1,980 Mil.
Total Assets was $6,526 Mil.
Property, Plant and Equipment(Net PPE) was $717 Mil.
Depreciation, Depletion and Amortization(DDA) was $195 Mil.
Selling, General, & Admin. Expense(SGA) was $2,503 Mil.
Total Current Liabilities was $3,086 Mil.
Long-Term Debt & Capital Lease Obligation was $3,069 Mil.
Net Income was 173.545 + 204.925 + 172.515 + 209.359 = $760 Mil.
Non Operating Income was 7.599 + 6.259 + 26.999 + 20.833 = $62 Mil.
Cash Flow from Operations was 314.921 + 415.607 + 167.785 + 234.786 = $1,133 Mil.
|
Total Receivables was $970 Mil.
Revenue was 1156.282 + 1167.319 + 1104.038 + 1112.759 = $4,540 Mil.
Gross Profit was 797.045 + 816.517 + 769.571 + 761.331 = $3,144 Mil.
Total Current Assets was $2,109 Mil.
Total Assets was $6,995 Mil.
Property, Plant and Equipment(Net PPE) was $913 Mil.
Depreciation, Depletion and Amortization(DDA) was $217 Mil.
Selling, General, & Admin. Expense(SGA) was $2,014 Mil.
Total Current Liabilities was $2,905 Mil.
Long-Term Debt & Capital Lease Obligation was $3,198 Mil.
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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) |
| = | (1047.14 / 5277.452) | / | (969.966 / 4540.398) |
| = | 0.19841772 | / | 0.21363017 |
| | = | 0.9288 |
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) |
| = | (3144.464 / 4540.398) | / | (3659.46 / 5277.452) |
| = | 0.6925525 | / | 0.69341417 |
| | = | 0.9988 |
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 - (1980.255 + 717.086) / 6525.954) | / | (1 - (2108.848 + 913.337) / 6994.639) |
| = | 0.58667484 | / | 0.56792838 |
| | = | 1.033 |
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 |
| = | 5277.452 | / | 4540.398 |
| | = | 1.1623 |
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)) |
| = | (217.13 / (217.13 + 913.337)) | / | (194.92 / (194.92 + 717.086)) |
| = | 0.19207106 | / | 0.21372666 |
| | = | 0.8987 |
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) |
| = | (2503.18 / 5277.452) | / | (2014.3 / 4540.398) |
| = | 0.47431601 | / | 0.44363952 |
| | = | 1.0691 |
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) |
| = | ((3069.295 + 3085.893) / 6525.954) | / | ((3197.731 + 2904.544) / 6994.639) |
| = | 0.94318593 | / | 0.87242172 |
| | = | 1.0811 |
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 |
| = | (760.344 - 61.69 | - | 1133.099) | / | 6525.954 |
| | = | -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.
Gartner has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.
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