Twilio (MEX:TWLO) Beneish M-Score : -2.95 (As of Dec. 14, 2024)

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What is Twilio 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 -2.95 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:TWLO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46 Med: -2.37 Max: 2.87
Current: -2.95

During the past 11 years, the highest Beneish M-Score of Twilio was 2.87. The lowest was -3.46. And the median was -2.37.

Twilio Beneish M-Score Historical Data

The historical data trend for Twilio'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.

Twilio Beneish M-Score Chart

Twilio Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-0.61

-2.00

-2.48

-2.38

-2.82

Twilio Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.61	-2.82	-2.99	-3.01	-2.95

Competitive Comparison of Twilio's Beneish M-Score

For the Software - Infrastructure subindustry, Twilio'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.

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

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

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

Twilio 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 Twilio 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 * 1.0619

0.528 * 0.9533

0.404 * 1.0996

0.892 * 1.0525

0.115 * 0.8615

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7935

4.679 * -0.086717

0.327 * 1.1341

-2.79

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN10,847 Mil.
Revenue was 22321.889 + 19831.548 + 17377.109 + 18263.442 = MXN77,794 Mil.
Gross Profit was 11393.379 + 10183.138 + 9029.043 + 9016.143 = MXN39,622 Mil.
Total Current Assets was MXN69,868 Mil.
Total Assets was MXN197,637 Mil.
Property, Plant and Equipment(Net PPE) was MXN2,871 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN3,950 Mil.
Selling, General, & Admin. Expense(SGA) was MXN23,630 Mil.
Total Current Liabilities was MXN13,798 Mil.
Long-Term Debt & Capital Lease Obligation was MXN21,363 Mil.
Net Income was -191.508 + -583.642 + -918.586 + -6202.526 = MXN-7,896 Mil.
Non Operating Income was -48.261 + -126.335 + -192.566 + -5255.312 = MXN-5,622 Mil.
Cash Flow from Operations was 4023.299 + 3908.466 + 3155.33 + 3777.534 = MXN14,865 Mil.

Total Receivables was MXN9,706 Mil.
Revenue was 18005.391 + 17791.271 + 18143.316 + 19975.095 = MXN73,915 Mil.
Gross Profit was 8993.707 + 8670.613 + 8844.687 + 9380.344 = MXN35,889 Mil.
Total Current Assets was MXN82,593 Mil.
Total Assets was MXN206,549 Mil.
Property, Plant and Equipment(Net PPE) was MXN5,250 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN5,226 Mil.
Selling, General, & Admin. Expense(SGA) was MXN28,293 Mil.
Total Current Liabilities was MXN12,648 Mil.
Long-Term Debt & Capital Lease Obligation was MXN19,752 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)
	=	(10847.406 / 77793.988)	/	(9705.827 / 73915.073)
	=	0.139438	/	0.131311
	=	1.0619

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)
	=	(35889.351 / 73915.073)	/	(39621.703 / 77793.988)
	=	0.485548	/	0.509316
	=	0.9533

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 - (69867.525 + 2871.476) / 197636.602)	/	(1 - (82593.059 + 5249.759) / 206548.717)
	=	0.631956	/	0.574711
	=	1.0996

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
	=	77793.988	/	73915.073
	=	1.0525

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))
	=	(5225.862 / (5225.862 + 5249.759))	/	(3949.606 / (3949.606 + 2871.476))
	=	0.498859	/	0.579029
	=	0.8615

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)
	=	(23629.501 / 77793.988)	/	(28292.781 / 73915.073)
	=	0.303745	/	0.382774
	=	0.7935

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)
	=	((21362.696 + 13797.722) / 197636.602)	/	((19752.019 + 12648.157) / 206548.717)
	=	0.177904	/	0.156865
	=	1.1341

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
	=	(-7896.262 - -5622.474	-	14864.629)	/	197636.602
	=	-0.086717

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.

Twilio has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.

Twilio Beneish M-Score Related Terms

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Twilio Business Description

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Address

101 Spear Street, Fifth Floor, San Francisco, CA, USA, 94105

Website

https://www.twilio.com

Twilio is a cloud-based communications platform-as-a-service company offering communication building blocks that allow for a fully customized customer engagement experience spanning voice, video, chat, and SMS messaging. It does this through various application programming interfaces and prebuilt solution applications aimed at improving customer engagement. The company leverages its Super Network, a global network of carrier relationships, to facilitate high-speed, cost-effective communication.