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Amazon.com Beneish M-Score

: -2.57 (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 -2.57 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:AMZN' s Beneish M-Score Range Over the Past 10 Years
Min: -4.17   Med: -2.7   Max: 27.07
Current: -2.57

-4.17
27.07

During the past 13 years, the highest Beneish M-Score of Amazon.com was 27.07. The lowest was -4.17. And the median was -2.70.


Amazon.com Beneish M-Score Historical Data

The historical data trend for Amazon.com'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.

Amazon.com Annual Data
Trend Dec11 Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.99 -2.33 -2.86 -2.92 -2.91

Amazon.com Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -2.90 -2.91 -2.75 -2.60 -2.57

Competitive Comparison

For the Internet Retail subindustry, Amazon.com'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.

   

Amazon.com Beneish M-Score Distribution

For the Retail - Cyclical industry and Consumer Cyclical sector, Amazon.com's Beneish M-Score distribution charts can be found below:

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



Amazon.com 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 Amazon.com 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 * 1.0434+0.528 * 0.9781+0.404 * 0.9368+0.892 * 1.3162+0.115 * 1.0863
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.018+4.679 * -0.0848-0.327 * 0.957
=-2.57

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $28,610 Mil.
Revenue was 110812 + 113080 + 108518 + 125555 = $457,965 Mil.
Gross Profit was 29384 + 31266 + 29585 + 27797 = $118,032 Mil.
Total Current Assets was $138,531 Mil.
Total Assets was $382,406 Mil.
Property, Plant and Equipment(Net PPE) was $199,303 Mil.
Depreciation, Depletion and Amortization(DDA) was $32,112 Mil.
Selling, General, & Admin. Expense(SGA) was $90,198 Mil.
Total Current Liabilities was $123,994 Mil.
Long-Term Debt & Capital Lease Obligation was $113,903 Mil.
Net Income was 3156 + 7778 + 8107 + 7222 = $26,263 Mil.
Non Operating Income was -163 + 1261 + 1697 + 1206 = $4,001 Mil.
Cash Flow from Operations was 7313 + 12715 + 4213 + 30431 = $54,672 Mil.
Accounts Receivable was $20,832 Mil.
Revenue was 96145 + 88912 + 75452 + 87436 = $347,945 Mil.
Gross Profit was 24334 + 22446 + 19664 + 21267 = $87,711 Mil.
Total Current Assets was $112,969 Mil.
Total Assets was $282,179 Mil.
Property, Plant and Equipment(Net PPE) was $134,100 Mil.
Depreciation, Depletion and Amortization(DDA) was $23,803 Mil.
Selling, General, & Admin. Expense(SGA) was $67,319 Mil.
Total Current Liabilities was $101,912 Mil.
Long-Term Debt & Capital Lease Obligation was $81,518 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(28610 / 457965) / (20832 / 347945)
=0.06247202 / 0.05987153
=1.0434

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)
=(87711 / 347945) / (118032 / 457965)
=0.25208294 / 0.25773149
=0.9781

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 - (138531 + 199303) / 382406) / (1 - (112969 + 134100) / 282179)
=0.11655675 / 0.12442457
=0.9368

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
=457965 / 347945
=1.3162

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))
=(23803 / (23803 + 134100)) / (32112 / (32112 + 199303))
=0.15074444 / 0.13876369
=1.0863

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)
=(90198 / 457965) / (67319 / 347945)
=0.19695392 / 0.19347598
=1.018

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)
=((113903 + 123994) / 382406) / ((81518 + 101912) / 282179)
=0.62210582 / 0.65004837
=0.957

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
=(26263 - 4001 - 54672) / 382406
=-0.0848

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.

Amazon.com has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.


Amazon.com Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Amazon.com's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Amazon.com Business Description

Amazon.com logo
Industry
Consumer Cyclical » Retail - Cyclical NAICS : 454110 SIC : 5961
Address
410 Terry Avenue North, Seattle, WA, USA, 98109-5210
Amazon is a leading online retailer and one of the highest-grossing e-commerce aggregators, with $386 billion in net sales and approximately $482 billion in estimated physical/digital online gross merchandise volume, or GMV, in 2020. Retail related revenue represented approximately 83% of total, followed by Amazon Web Services' cloud computing, storage, database, and other offerings (12%), and advertising services and cobranded credit cards (6%). International segments constituted 27% of Amazon's non-AWS sales in 20202, led by Germany, the United Kingdom, and Japan.
Executives
Wilke Jeffrey A officer: CEO Worldwide Consumer PO BOX 81226 SEATTLE WA 98108-1226
Nooyi Indra K director 700 ANDERSON HILL RD PURCHASE NY 10577
Jassy Andrew R officer: CEO Amazon Web Services PO BOX 81226 SEATTLE WA 98108-1226
Reynolds Shelley officer: Vice President PO BOX 81226 SEATTLE WA 98108
Zapolsky David officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108
Olsavsky Brian T officer: Senior Vice President and CFO PO BOX 81226 SEATTLE WA 98108
Mcgrath Judith A director PO BOX 81226 SEATTLE WA 98108
Alexander Keith Brian director P.O. BOX 81226 SEATTLE WA 98108-1226
Bezos Jeffrey P director, 10 percent owner, officer: Chairman, CEO and President PO BOX 81226 PO BOX 81226 SEATTLE WA 98108-1226
Stonesifer Patricia Q director PO BOX 81226 SEATTLE WA 98108-1226
Rubinstein Jonathan director APPLE COMPUTER INC 1 INFINITE LOOP CUPERTINO CA 95014
Gorelick Jamie S director 12061 BLUEMONT WAY RESTON VA 20190
Weeks Wendell P director ONE RIVERFRONT PLZ CORNING NY 14831
Blackburn Jeffrey M officer: Senior Vice President PO BOX 81226 SEATTLE WA 98108-1226
Brewer Rosalind G director C/O MOLSON COORS BREWING COMPANY 1225 17TH STREET, SUITE 3200 DENVER CO 80202

Amazon.com Headlines

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