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DocuSign Beneish M-Score

: -3.42 (As of Today)
View and export this data going back to 2018. Start your Free Trial

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 -3.42 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:DOCU' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42   Med: -3.1   Max: -2.59
Current: -3.42

-3.42
-2.59

During the past 6 years, the highest Beneish M-Score of DocuSign was -2.59. The lowest was -3.42. And the median was -3.10.


DocuSign Beneish M-Score Historical Data

The historical data trend for DocuSign'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.

DocuSign Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21
Beneish M-Score
Premium Member Only - -3.10 -3.41 -2.84 -3.19

DocuSign Quarterly Data
Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21
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 -3.11 -3.19 -3.34 -3.38 -3.42

Competitive Comparison

For the Software - Application subindustry, DocuSign'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.

   

DocuSign Beneish M-Score Distribution

For the Software industry and Technology sector, DocuSign's Beneish M-Score distribution charts can be found below:

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



DocuSign 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 DocuSign 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 * 0.7757+0.528 * 0.9591+0.404 * 0.9487+0.892 * 1.509+0.115 * 0.8146
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8839+4.679 * -0.2338-0.327 * 1.1405
=-3.42

* 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 (Oct21) TTM:Last Year (Oct20) TTM:
Accounts Receivable was $306 Mil.
Revenue was 545.463 + 511.844 + 469.078 + 430.898 = $1,957 Mil.
Gross Profit was 429.488 + 398.064 + 363.836 + 329.318 = $1,521 Mil.
Total Current Assets was $1,207 Mil.
Total Assets was $2,411 Mil.
Property, Plant and Equipment(Net PPE) was $310 Mil.
Depreciation, Depletion and Amortization(DDA) was $81 Mil.
Selling, General, & Admin. Expense(SGA) was $1,220 Mil.
Total Current Liabilities was $1,260 Mil.
Long-Term Debt & Capital Lease Obligation was $855 Mil.
Net Income was -5.676 + -25.501 + -8.354 + -72.412 = $-112 Mil.
Non Operating Income was 0 + -2.257 + 4.911 + -32.01 = $-29 Mil.
Cash Flow from Operations was 105.409 + 177.669 + 135.597 + 62.233 = $481 Mil.
Accounts Receivable was $261 Mil.
Revenue was 382.923 + 342.209 + 297.017 + 274.895 = $1,297 Mil.
Gross Profit was 285.092 + 251.594 + 222.985 + 206.82 = $966 Mil.
Total Current Assets was $930 Mil.
Total Assets was $2,051 Mil.
Property, Plant and Equipment(Net PPE) was $320 Mil.
Depreciation, Depletion and Amortization(DDA) was $65 Mil.
Selling, General, & Admin. Expense(SGA) was $914 Mil.
Total Current Liabilities was $923 Mil.
Long-Term Debt & Capital Lease Obligation was $655 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)
=(305.599 / 1957.283) / (261.085 / 1297.044)
=0.15613429 / 0.20129232
=0.7757

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)
=(966.491 / 1297.044) / (1520.706 / 1957.283)
=0.74514897 / 0.77694743
=0.9591

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 - (1206.589 + 310.44) / 2410.503) / (1 - (929.76 + 320.014) / 2051.119)
=0.37065874 / 0.39068674
=0.9487

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
=1957.283 / 1297.044
=1.509

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))
=(64.721 / (64.721 + 320.014)) / (80.798 / (80.798 + 310.44))
=0.16822228 / 0.20651879
=0.8146

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)
=(1219.504 / 1957.283) / (914.321 / 1297.044)
=0.62305962 / 0.70492674
=0.8839

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)
=((855.061 + 1260.367) / 2410.503) / ((655.227 + 923.1) / 2051.119)
=0.87758779 / 0.76949558
=1.1405

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
=(-111.943 - -29.356 - 480.908) / 2410.503
=-0.2338

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.

DocuSign has a M-score of -3.42 suggests that the company is unlikely to be a manipulator.


DocuSign Beneish M-Score Related Terms

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DocuSign Business Description

DocuSign logo
Industry
Technology » Software NAICS : 511210 SIC : 7379
Traded in Other Exchanges
Address
221 Main Street, Suite 1550, San Francisco, CA, USA, 94105
DocuSign offers the Agreement Cloud, a broad cloud-based software suite that enables users to automate the agreement process and provide legally binding e-signatures from nearly any device. The company was founded in 2003 and completed its IPO in May 2018.
Executives
Gaylor Cynthia officer: Chief Financial Officer C/O PIVOTAL SOFTWARE, INC. 875 HOWARD STREET, FIFTH FLOOR SAN FRANCISCO CA 94103
Olrich Scott V. officer: Chief Operating Officer C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105
Salem Enrique T director SYMANTEC CORPORATION 20330 STEVENS CREEK BLVD. CUPERTINO CA 95014
Solvik Peter director 2105 SOUTH BASCOM AVE. #370 CAMPBELL CA 95008
Alhadeff Loren officer: Chief Revenue Officer C/O DOCUSIGN, INC. SUITE 1000 SAN FRANCISCO CA 94105
Wilderotter Mary Agnes director 115 ALPINE TERRACE OAKLAND CA 94618
Springer Daniel D. director, officer: President and CEO C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105
Phi Tram T officer: SVP, General Counsel C/O IMPERVA, INC. 3400 BRIDGE PARKWAY REDWOOD SHORES CA 94065
Suh Inhi Cho director C/O DOCUSIGN, INC. 221 MAIN STREET, SUITE 1000 SAN FRANCISCO CA 94105
Singh Sudhir Steven director 6222 185TH AVE REDMOND WA 98052
Irving Blake director 14455 N. HAYDEN RD. SCOTTSDALE AZ 85260
Briggs Teresa director 2225 LAWSON LANE SANTA CLARA CA 95054
Beer James A director MCKESSON CORPORATION ONE POST STREET SAN FRANCISCO CA 94104
Wolberg Kirsten O. officer: Chief Technology & Ops Officer 900 NORTH MCCARTHY BLVD MILPITAS CA 95035
Sheridan Michael J officer: Chief Financial Officer C/O DOCUSIGN, INC. 221 MAIN ST., SUITE 1000 SAN FRANCISCO CA 94105

DocuSign Headlines

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