SAP SE (MEX:SAP N) Beneish M-Score : -2.34 (As of Mar. 02, 2025)

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What is SAP SE 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 -2.34 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:SAP N' s Beneish M-Score Range Over the Past 10 Years
Min: -2.91 Med: -2.47 Max: -2.19
Current: -2.34

During the past 13 years, the highest Beneish M-Score of SAP SE was -2.19. The lowest was -2.91. And the median was -2.47.

SAP SE Beneish M-Score Historical Data

The historical data trend for SAP SE'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.

SAP SE Beneish M-Score Chart

SAP SE Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.91

-2.72

-2.60

-2.44

-2.34

SAP SE 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															-2.44	-2.29	-2.47	-2.62	-2.34

Competitive Comparison of SAP SE's Beneish M-Score

For the Software - Application subindustry, SAP SE'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.

SAP SE's Beneish M-Score Distribution in the Software Industry

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

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

SAP SE 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 SAP SE 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 * 1.0602

0.528 * 0.9887

0.404 * 1.0224

0.892 * 1.1946

0.115 * 1.1681

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9395

4.679 * 0.020985

0.327 * 1.1001

-2.15

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN163,373 Mil.
Revenue was 204778.952 + 185101.932 + 163461.07 + 145054.877 = MXN698,397 Mil.
Gross Profit was 151624.215 + 135755.986 + 118656.684 + 103943.067 = MXN509,980 Mil.
Total Current Assets was MXN467,364 Mil.
Total Assets was MXN1,618,708 Mil.
Property, Plant and Equipment(Net PPE) was MXN98,120 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN26,106 Mil.
Selling, General, & Admin. Expense(SGA) was MXN214,436 Mil.
Total Current Liabilities was MXN416,655 Mil.
Long-Term Debt & Capital Lease Obligation was MXN156,560 Mil.
Net Income was 34963.325 + 31972.152 + 17511.573 + -14936.63 = MXN69,510 Mil.
Non Operating Income was -8866.402 + -218.538 + -12542.073 + -43114.184 = MXN-64,741 Mil.
Cash Flow from Operations was -12011.136 + 32190.69 + 30369.17 + 49734.647 = MXN100,283 Mil.

Total Receivables was MXN129,001 Mil.
Revenue was 156748.018 + 143961.514 + 140327.372 + 143601.74 = MXN584,639 Mil.
Gross Profit was 114839.95 + 104792.233 + 100467.34 + 101974.411 = MXN422,074 Mil.
Total Current Assets was MXN380,782 Mil.
Total Assets was MXN1,264,924 Mil.
Property, Plant and Equipment(Net PPE) was MXN79,151 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN25,751 Mil.
Selling, General, & Admin. Expense(SGA) was MXN191,073 Mil.
Total Current Liabilities was MXN271,033 Mil.
Long-Term Debt & Capital Lease Obligation was MXN136,127 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)
	=	(163373.29 / 698396.831)	/	(129000.583 / 584638.644)
	=	0.233926	/	0.22065
	=	1.0602

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)
	=	(422073.934 / 584638.644)	/	(509979.952 / 698396.831)
	=	0.72194	/	0.730215
	=	0.9887

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 - (467364.226 + 98120.063) / 1618708.058)	/	(1 - (380782.176 + 79151.455) / 1264923.923)
	=	0.650657	/	0.636394
	=	1.0224

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
	=	698396.831	/	584638.644
	=	1.1946

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))
	=	(25750.956 / (25750.956 + 79151.455))	/	(26105.985 / (26105.985 + 98120.063))
	=	0.245475	/	0.210149
	=	1.1681

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)
	=	(214435.942 / 698396.831)	/	(191072.655 / 584638.644)
	=	0.30704	/	0.326822
	=	0.9395

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)
	=	((156559.7 + 416655.393) / 1618708.058)	/	((136127.175 + 271032.649) / 1264923.923)
	=	0.354119	/	0.321885
	=	1.1001

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
	=	(69510.42 - -64741.197	-	100283.371)	/	1618708.058
	=	0.020985

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.

SAP SE has a M-score of -2.15 suggests that the company is unlikely to be a manipulator.

SAP SE Beneish M-Score Related Terms

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Founded in Germany in 1972 by former IBM employees, SAP is the world's largest provider of enterprise application software. Known as the leader in enterprise resource planning software, SAP's portfolio also includes software for supply chain management, procurement, travel and expense management, and customer relationship management, among others. The company operates in more than 180 countries and has more than 400,000 customers, approximately 80% of which are small to medium-size enterprises.

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