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Apple Beneish M-Score

: -2.55 (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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MIL:AAPL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.41   Med: -2.57   Max: -0.88
Current: -2.55

During the past 13 years, the highest Beneish M-Score of Apple was -0.88. The lowest was -4.41. And the median was -2.57.


Apple Beneish M-Score Historical Data

The historical data trend for Apple'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.

Apple Annual Data
Trend Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.50 -2.42 -2.87 -2.97 -2.25

Apple Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.60 -2.25 -2.49 -2.38 -2.55

Competitive Comparison

For the Consumer Electronics subindustry, Apple'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.

   

Apple Beneish M-Score Distribution

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

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



Apple 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 Apple 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 * 1.1829+0.528 * 0.9464+0.404 * 1.0189+0.892 * 1.2004+0.115 * 1.0671
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0213+4.679 * -0.0511-0.327 * 1.0316
=-2.40

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was €39,961 Mil.
Revenue was 78479.214002323 + 88328.424000247 + 109691.32500241 + 70856.000002126 = €347,355 Mil.
Gross Profit was 33947.210001005 + 38643.572000108 + 48005.055001056 + 29897.900000897 = €150,494 Mil.
Total Current Assets was €106,228 Mil.
Total Assets was €318,148 Mil.
Property, Plant and Equipment(Net PPE) was €38,157 Mil.
Depreciation, Depletion and Amortization(DDA) was €10,066 Mil.
Selling, General, & Admin. Expense(SGA) was €21,792 Mil.
Total Current Liabilities was €122,860 Mil.
Long-Term Debt & Capital Lease Obligation was €89,586 Mil.
Net Income was 18392.132000544 + 22709.080000064 + 30647.550000674 + 17468.350000524 = €89,217 Mil.
Non Operating Income was -12.298000000364 + 137.10800000038 + -179.65500000395 + -446.25000001339 = €-501 Mil.
Cash Flow from Operations was 21655.832000641 + 25574.728000072 + 41564.910000914 + 17170.000000515 = €105,965 Mil.
Total Receivables was €28,144 Mil.
Revenue was 67590.220000473 + 75250.559998495 + 91602.857997398 + 54928.602001456 = €289,372 Mil.
Gross Profit was 29261.650000205 + 31986.35999936 + 36437.615998965 + 20960.961000555 = €118,647 Mil.
Total Current Assets was €94,971 Mil.
Total Assets was €273,767 Mil.
Property, Plant and Equipment(Net PPE) was €32,050 Mil.
Depreciation, Depletion and Amortization(DDA) was €9,185 Mil.
Selling, General, & Admin. Expense(SGA) was €17,775 Mil.
Total Current Liabilities was €89,436 Mil.
Long-Term Debt & Capital Lease Obligation was €87,774 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)
=(39960.932001183 / 347354.96300711) / (28143.640000197 / 289372.23999782)
=0.1150435 / 0.09725757
=1.1829

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)
=(118646.58699909 / 289372.23999782) / (150493.73700307 / 347354.96300711)
=0.41001371 / 0.43325633
=0.9464

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 - (106228.23200314 + 38156.910001129) / 318148.31400942) / (1 - (94971.090000665 + 32050.450000224) / 273767.20000192)
=0.54617034 / 0.53602353
=1.0189

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
=347354.96300711 / 289372.23999782
=1.2004

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))
=(9185.489999968 / (9185.489999968 + 32050.450000224)) / (10066.221000214 / (10066.221000214 + 38156.910001129))
=0.22275447 / 0.20874258
=1.0671

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)
=(21791.561000453 / 347354.96300711) / (17775.065999922 / 289372.23999782)
=0.06273571 / 0.0614263
=1.0213

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)
=((89586.200002652 + 122859.85800364) / 318148.31400942) / ((87774.160000614 + 89435.820000626) / 273767.20000192)
=0.66775793 / 0.64730172
=1.0316

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
=(89217.112001806 - -501.09500001732 - 105965.47000214) / 318148.31400942
=-0.0511

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.

Apple has a M-score of -2.40 suggests that the company is unlikely to be a manipulator.


Apple Business Description

Apple logo
Address
One Apple Park Way, Cupertino, CA, USA, 95014
Apple designs a wide variety of consumer electronic devices, including smartphones (iPhone), tablets (iPad), PCs (Mac), smartwatches (Apple Watch), AirPods, and TV boxes (Apple TV), among others. The iPhone makes up the majority of Apple's total revenue. In addition, Apple offers its customers a variety of services such as Apple Music, iCloud, Apple Care, Apple TV+, Apple Arcade, Apple Card, and Apple Pay, among others. Apple's products run internally developed software and semiconductors, and the firm is well known for its integration of hardware, software and services. Apple's products are distributed online as well as through company-owned stores and third-party retailers. The company generates roughly 40% of its revenue from the Americas, with the remainder earned internationally.

Apple Headlines

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