Adobe Beneish M-Score Historical Data
The historical data trend for Adobe'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.
Adobe Beneish M-Score Chart
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Adobe Annual Data
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Nov23 |
| Beneish M-Score |
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-2.71 |
-2.60 |
-2.60 |
-2.95 |
-2.70 |
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Adobe Quarterly Data
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May19 |
Aug19 |
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Feb24 |
| Beneish M-Score |
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-2.97 |
-2.97 |
-2.93 |
-2.70 |
-2.53 |
Competitive Comparison of Adobe's Beneish M-Score
For the Software - Infrastructure subindustry, Adobe'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.
Adobe's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, Adobe's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Adobe's Beneish M-Score falls into.
Adobe 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 Adobe 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 * 1.0312 | + | 0.528 * 0.9952 | + | 0.404 * 0.9527 | + | 0.892 * 1.1076 | + | 0.115 * 0.9811 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9656 | + | 4.679 * -0.035442 | - | 0.327 * 0.9736 |
| = | -2.53 |
* 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 (Feb24) TTM: | Last Year (Feb23) TTM: |
Total Receivables was $2,057 Mil.
Revenue was 5182 + 5048 + 4890 + 4816 = $19,936 Mil.
Gross Profit was 4592 + 4414 + 4310 + 4244 = $17,560 Mil.
Total Current Assets was $10,008 Mil.
Total Assets was $28,751 Mil.
Property, Plant and Equipment(Net PPE) was $2,354 Mil.
Depreciation, Depletion and Amortization(DDA) was $872 Mil.
Selling, General, & Admin. Expense(SGA) was $6,836 Mil.
Total Current Liabilities was $9,537 Mil.
Long-Term Debt & Capital Lease Obligation was $2,516 Mil.
Net Income was 620 + 1483 + 1403 + 1295 = $4,801 Mil.
Non Operating Income was -912 + -176 + 73 + 52 = $-963 Mil.
Cash Flow from Operations was 1174 + 1597 + 1873 + 2139 = $6,783 Mil.
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Total Receivables was $1,801 Mil.
Revenue was 4655 + 4525 + 4433 + 4386 = $17,999 Mil.
Gross Profit was 4087 + 3957 + 3887 + 3847 = $15,778 Mil.
Total Current Assets was $8,342 Mil.
Total Assets was $26,667 Mil.
Property, Plant and Equipment(Net PPE) was $2,369 Mil.
Depreciation, Depletion and Amortization(DDA) was $855 Mil.
Selling, General, & Admin. Expense(SGA) was $6,392 Mil.
Total Current Liabilities was $7,437 Mil.
Long-Term Debt & Capital Lease Obligation was $4,045 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) |
| = | (2057 / 19936) | / | (1801 / 17999) |
| = | 0.10318 | / | 0.100061 |
| | = | 1.0312 |
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) |
| = | (15778 / 17999) | / | (17560 / 19936) |
| = | 0.876604 | / | 0.880819 |
| | = | 0.9952 |
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 - (10008 + 2354) / 28751) | / | (1 - (8342 + 2369) / 26667) |
| = | 0.570032 | / | 0.598343 |
| | = | 0.9527 |
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 |
| = | 19936 | / | 17999 |
| | = | 1.1076 |
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)) |
| = | (855 / (855 + 2369)) | / | (872 / (872 + 2354)) |
| = | 0.265199 | / | 0.270304 |
| | = | 0.9811 |
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) |
| = | (6836 / 19936) | / | (6392 / 17999) |
| = | 0.342897 | / | 0.355131 |
| | = | 0.9656 |
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) |
| = | ((2516 + 9537) / 28751) | / | ((4045 + 7437) / 26667) |
| = | 0.41922 | / | 0.43057 |
| | = | 0.9736 |
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 |
| = | (4801 - -963 | - | 6783) | / | 28751 |
| | = | -0.035442 |
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.
Adobe has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.
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