Cognizant Technology Solutions Beneish M-Score Historical Data
The historical data trend for Cognizant Technology Solutions'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.
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Cognizant Technology Solutions Annual Data
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Trend |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
| Beneish M-Score |
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-2.63 |
-2.51 |
-2.54 |
-2.93 |
-2.43 |
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Cognizant Technology Solutions Quarterly Data
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Sep17 |
Dec17 |
Mar18 |
Jun18 |
Sep18 |
Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
| Beneish M-Score |
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-2.54 |
-2.48 |
-2.43 |
-2.46 |
-2.46 |
Competitive Comparison
For the Information Technology Services subindustry, Cognizant Technology Solutions'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.
Cognizant Technology Solutions Beneish M-Score Distribution
For the Software industry and Technology sector, Cognizant Technology Solutions's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Cognizant Technology Solutions's Beneish M-Score falls into.
Cognizant Technology Solutions 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 Cognizant Technology Solutions 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 * 1.0012 | + | 0.528 * 1.0144 | + | 0.404 * 0.9821 | + | 0.892 * 1.1057 | + | 0.115 * 0.9245 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9456 | + | 4.679 * -0.0198 | - | 0.327 * 0.9413 |
| = | -2.46 |
* 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 $3,785 Mil.
Revenue was 4906 + 4826 + 4777 + 4744 = $19,253 Mil.
Gross Profit was 1787 + 1729 + 1747 + 1797 = $7,060 Mil.
Total Current Assets was $7,023 Mil.
Total Assets was $17,258 Mil.
Property, Plant and Equipment(Net PPE) was $2,028 Mil.
Depreciation, Depletion and Amortization(DDA) was $575 Mil.
Selling, General, & Admin. Expense(SGA) was $3,540 Mil.
Total Current Liabilities was $3,153 Mil.
Long-Term Debt & Capital Lease Obligation was $1,355 Mil.
Net Income was 577 + 563 + 576 + 544 = $2,260 Mil.
Non Operating Income was -5 + 1 + 0 + -2 = $-6 Mil.
Cash Flow from Operations was 528 + 306 + 825 + 948 = $2,607 Mil.
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Total Receivables was $3,419 Mil.
Revenue was 4585 + 4401 + 4184 + 4243 = $17,413 Mil.
Gross Profit was 1722 + 1637 + 1522 + 1596 = $6,477 Mil.
Total Current Assets was $6,451 Mil.
Total Assets was $16,829 Mil.
Property, Plant and Equipment(Net PPE) was $2,229 Mil.
Depreciation, Depletion and Amortization(DDA) was $572 Mil.
Selling, General, & Admin. Expense(SGA) was $3,386 Mil.
Total Current Liabilities was $3,183 Mil.
Long-Term Debt & Capital Lease Obligation was $1,487 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) |
| = | (3785 / 19253) | / | (3419 / 17413) |
| = | 0.19659274 | / | 0.19634756 |
| | = | 1.0012 |
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) |
| = | (6477 / 17413) | / | (7060 / 19253) |
| = | 0.37196348 | / | 0.3666961 |
| | = | 1.0144 |
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 - (7023 + 2028) / 17258) | / | (1 - (6451 + 2229) / 16829) |
| = | 0.47554757 | / | 0.48422366 |
| | = | 0.9821 |
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 |
| = | 19253 | / | 17413 |
| | = | 1.1057 |
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)) |
| = | (572 / (572 + 2229)) | / | (575 / (575 + 2028)) |
| = | 0.20421278 | / | 0.22089896 |
| | = | 0.9245 |
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) |
| = | (3540 / 19253) | / | (3386 / 17413) |
| = | 0.18386745 | / | 0.19445242 |
| | = | 0.9456 |
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) |
| = | ((1355 + 3153) / 17258) | / | ((1487 + 3183) / 16829) |
| = | 0.26121219 | / | 0.27749718 |
| | = | 0.9413 |
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 |
| = | (2260 - -6 | - | 2607) | / | 17258 |
| | = | -0.0198 |
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.
Cognizant Technology Solutions has a M-score of -2.46 suggests that the company is unlikely to be a manipulator.
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