CrowdStrike Holdings Beneish M-Score

CrowdStrike Holdings 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 CrowdStrike Holdings for today is based on a combination of the following eight different indices:

* 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.

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.

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.

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.

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.

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.

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.

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

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

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.

CrowdStrike Holdings has a M-score of -2.88 suggests that the company is unlikely to be a manipulator.

CrowdStrike Holdings Beneish M-Score Related Terms

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

CrowdStrike Holdings Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » CrowdStrike Holdings Inc (NAS:CRWD) » Definitions » Beneish M-Score

Comparable Companies

NAS:SNPS NAS:FTNT NYSE:SQ NAS:PANW NAS:ZS NAS:VRSN NYSE:FLT NYSE:NET NYSE:VMW NYSE:PLTR NAS:MSFT NAS:ADBE NYSE:ORCL XAMS:ADYEN NAS:SPLK NAS:AKAM NAS:CHKP NAS:MDB NAS:NLOK NAS:OKTA

Traded in Other Exchanges

CRWD:Mexico 45C:Germany

Address

150 Mathilda Place, Suite 300, Sunnyvale, CA, USA, 94086

Website

https://www.crowdstrike.com

CrowdStrike Holdings provides cybersecurity products and services aimed at protecting organizations from cyberthreats. It offers cloud-delivered protection across endpoints, cloud workloads, identity and data, and threat intelligence, managed security services, IT operations management, threat hunting, identity protection, and log management. CrowdStrike went public in 2019 and serves customers worldwide.

Executives

Saha Anurag	officer: CHIEF ACCOUNTING OFFICER	206 E. 9TH STREET SUITE 1400 AUSTIN TX 78701
Schumacher Laura J	director	1 N. WAUKEGAN ROAD NORTH CHICAGO IL 60064
Carpenter Michael J.	officer: PRES., GLBAL SALES & FLD OPS	CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Maheshwari Abhishek	officer: CHIEF ACCOUNTING OFFICER	CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Henry Shawn	officer: Please see remarks	CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Sexton Joseph E.	director	CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Alphabet Inc.	10 percent owner	1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Black Colin	officer: CHIEF OPERATING OFFICER	CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVAL CA 94086
Podbere Burt W.	officer: CHIEF FINANCIAL OFFICER	CROWDSTRIKE HOLDINGS, INC. 150 MATHILDA PLACE, SUITE 300 SUNNYVALE CA 94086
Gandhi Sameer K	director, 10 percent owner
Accel London Iii Lp	10 percent owner	C/O ACCEL PARTNERS 428 UNIVERSITY AVENUE PALO ALTO CA 94301
Accel London Iii Associates L.l.c.	10 percent owner	428 UNIVERSITY AVENUE PALO ALTO CA 94301
Accel London Iii Associates L.p.	10 percent owner	500 UNIVERSITY AVENUE PALO ALTO CA 94301
Accel London Investors 2012 L.p.	10 percent owner	428 UNIVERSITY AVE PALO ALTO CA 94301
Accel Growth Fund Investors 2013 L.l.c.	10 percent owner	428 UNIVERSITY AVE PALO ALTO CA 94301