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Apple Beneish M-Score

: -2.38 (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 -2.38 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:

AAPL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.41   Med: -2.58   Max: -0.88
Current: -2.38

During the past 13 years, the highest Beneish M-Score of Apple was -0.88. The lowest was -4.41. And the median was -2.58.


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
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 -2.67 -2.60 -2.25 -2.49 -2.38

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 * 1.1585+0.528 * 0.9206+0.404 * 1.0442+0.892 * 1.1863+0.115 * 1.0063
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9634+4.679 * -0.0402-0.327 * 1.0322
=-2.38

* 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 (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $45,400 Mil.
Revenue was 97278 + 123945 + 83360 + 81434 = $386,017 Mil.
Gross Profit was 42559 + 54243 + 35174 + 35255 = $167,231 Mil.
Total Current Assets was $118,180 Mil.
Total Assets was $350,662 Mil.
Property, Plant and Equipment(Net PPE) was $39,304 Mil.
Depreciation, Depletion and Amortization(DDA) was $11,255 Mil.
Selling, General, & Admin. Expense(SGA) was $23,670 Mil.
Total Current Liabilities was $127,508 Mil.
Long-Term Debt & Capital Lease Obligation was $103,323 Mil.
Net Income was 25010 + 34630 + 20551 + 21744 = $101,935 Mil.
Non Operating Income was 151 + -203 + -525 + 189 = $-388 Mil.
Cash Flow from Operations was 28166 + 46966 + 20200 + 21094 = $116,426 Mil.
Total Receivables was $33,036 Mil.
Revenue was 89584 + 111439 + 64698 + 59685 = $325,406 Mil.
Gross Profit was 38079 + 44328 + 24689 + 22680 = $129,776 Mil.
Total Current Assets was $121,465 Mil.
Total Assets was $337,158 Mil.
Property, Plant and Equipment(Net PPE) was $37,815 Mil.
Depreciation, Depletion and Amortization(DDA) was $10,917 Mil.
Selling, General, & Admin. Expense(SGA) was $20,712 Mil.
Total Current Liabilities was $106,385 Mil.
Long-Term Debt & Capital Lease Obligation was $108,642 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)
=(45400 / 386017) / (33036 / 325406)
=0.1176114 / 0.10152241
=1.1585

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)
=(129776 / 325406) / (167231 / 386017)
=0.39881256 / 0.43322185
=0.9206

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 - (118180 + 39304) / 350662) / (1 - (121465 + 37815) / 337158)
=0.55089516 / 0.52758054
=1.0442

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
=386017 / 325406
=1.1863

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))
=(10917 / (10917 + 37815)) / (11255 / (11255 + 39304))
=0.22402118 / 0.22261121
=1.0063

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)
=(23670 / 386017) / (20712 / 325406)
=0.06131854 / 0.06364972
=0.9634

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)
=((103323 + 127508) / 350662) / ((108642 + 106385) / 337158)
=0.65827207 / 0.6377633
=1.0322

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
=(101935 - -388 - 116426) / 350662
=-0.0402

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 -2.38 suggests that the company is unlikely to be a manipulator.


Apple Business Description

Apple logo
Industry
Technology » Hardware NAICS : 334220 SIC : 3571
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.
Executives
Kondo Chris officer: Principal Accounting Officer 1 INFINITE LOOP CUPERTINO CA 95014
Maestri Luca officer: Senior Vice President, CFO 1 INFINITE LOOP CUPERTINO CA 95014
Adams Katherine L. officer: SVP, GC and Secretary APPLE INC. 1 INFINITE LOOP CUPERTINO CA 95014
Williams Jeffrey E officer: COO ONE INFINITE LOOP CUPERTINO CA 95014
Cook Timothy D director, officer: Chief Executive Officer C/O APPLE INC ONE INFINITE LOOP CUPERTINO CA 95014
Jung Andrea director C/O APPLE INC ONE APPLE PARK WAY CUPERTINO CA 95014
Wagner Susan director C/O BLACKROCK, INC. 40 EAST 52ND STREET NEW YORK NY 10022
Bell James A director C/O THE DOW CHEMICAL COMPANY 2211 H.H. DOW WAY MIDLAND MI 48674
Levinson Arthur D director C/O GENENTECH INC 1 DNA WAY MS 49 SOUTH SAN FRANCISCO CA 94080-4990
Sugar Ronald D director 10877 WILSHIRE BLVD. SUITE 1650 LOS ANGELES CA 900274
Gore Albert Jr director C/O APPLE INC 1 INFINITE LOOP CUPERTINO CA 95014
Iger Robert A director C/O WALT DISNEY CO 500 S BUENA VISTA STREET BURBANK CA 91521-1062
Ahrendts Angela J officer: Senior Vice President 1 INFINITE LOOP CUPERTINO CA 95014
Srouji Johny officer: Senior Vice President 1 INFINITE LOOP CUPERTINO CA 95014
Federighi Craig officer: Senior Vice President 807 11TH AVENUE SUNNYVALE CA 94089

Apple Headlines

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