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Meta Platforms Beneish M-Score

: -2.49 (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 -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:FB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.71   Med: -2.59   Max: -0.67
Current: -2.49

-3.71
-0.67

During the past 11 years, the highest Beneish M-Score of Meta Platforms was -0.67. The lowest was -3.71. And the median was -2.59.


Meta Platforms Beneish M-Score Historical Data

The historical data trend for Meta Platforms'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.

Meta Platforms 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 -2.50 -2.58 -2.76 -3.52 -2.44

Meta Platforms 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 -2.54 -2.44 -2.18 -2.26 -2.49

Competitive Comparison

For the Internet Content & Information subindustry, Meta Platforms'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.

   

Meta Platforms Beneish M-Score Distribution

For the Interactive Media industry and Communication Services sector, Meta Platforms's Beneish M-Score distribution charts can be found below:

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



Meta Platforms 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 Meta Platforms 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 * 1.0592+0.528 * 1.0024+0.404 * 0.8775+0.892 * 1.4223+0.115 * 1.0322
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8167+4.679 * -0.0797-0.327 * 1.1748
=-2.49

* 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 $12,088 Mil.
Revenue was 29010 + 29077 + 26171 + 28072 = $112,330 Mil.
Gross Profit was 23239 + 23678 + 21040 + 22862 = $90,819 Mil.
Total Current Assets was $75,421 Mil.
Total Assets was $169,585 Mil.
Property, Plant and Equipment(Net PPE) was $64,789 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,816 Mil.
Selling, General, & Admin. Expense(SGA) was $21,060 Mil.
Total Current Liabilities was $17,812 Mil.
Long-Term Debt & Capital Lease Obligation was $11,554 Mil.
Net Income was 9194 + 10394 + 9497 + 11219 = $40,304 Mil.
Non Operating Income was 22 + 25 + 7 + 144 = $198 Mil.
Cash Flow from Operations was 14090 + 13247 + 12242 + 14040 = $53,619 Mil.
Accounts Receivable was $8,024 Mil.
Revenue was 21470 + 18687 + 17737 + 21082 = $78,976 Mil.
Gross Profit was 17276 + 14858 + 14278 + 17591 = $64,003 Mil.
Total Current Assets was $65,799 Mil.
Total Assets was $146,437 Mil.
Property, Plant and Equipment(Net PPE) was $51,730 Mil.
Depreciation, Depletion and Amortization(DDA) was $6,467 Mil.
Selling, General, & Admin. Expense(SGA) was $18,131 Mil.
Total Current Liabilities was $11,944 Mil.
Long-Term Debt & Capital Lease Obligation was $9,641 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)
=(12088 / 112330) / (8024 / 78976)
=0.1076115 / 0.10160049
=1.0592

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)
=(64003 / 78976) / (90819 / 112330)
=0.81041076 / 0.80850174
=1.0024

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 - (75421 + 64789) / 169585) / (1 - (65799 + 51730) / 146437)
=0.17321697 / 0.19740912
=0.8775

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
=112330 / 78976
=1.4223

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))
=(6467 / (6467 + 51730)) / (7816 / (7816 + 64789))
=0.11112257 / 0.10765099
=1.0322

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)
=(21060 / 112330) / (18131 / 78976)
=0.18748331 / 0.22957607
=0.8167

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)
=((11554 + 17812) / 169585) / ((9641 + 11944) / 146437)
=0.1731639 / 0.14740127
=1.1748

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
=(40304 - 198 - 53619) / 169585
=-0.0797

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.

Meta Platforms has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.


Meta Platforms Beneish M-Score Related Terms

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


Meta Platforms Business Description

Meta Platforms logo
Industry
Address
1601 Willow Road, Menlo Park, CA, USA, 94025
Facebook is the world's largest online social network, with 2.5 billion monthly active users. Users engage with each other in different ways, exchanging messages and sharing news events, photos, and videos. On the video side, the firm is in the process of building a library of premium content and monetizing it via ads or subscription revenue. Facebook refers to this as Facebook Watch. The firm's ecosystem consists mainly of the Facebook app, Instagram, Messenger, WhatsApp, and many features surrounding these products. Users can access Facebook on mobile devices and desktops. Advertising revenue represents more than 90% of the firm's total revenue, with 50% coming from the U.S. and Canada and 25% from Europe. With gross margins above 80%, Facebook operates at a 30%-plus margin.
Executives
Newstead Jennifer officer: VP and General Counsel C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Fischer David B. officer: Chief Revenue Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Wehner David M. officer: Chief Financial Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Taylor Susan J.s. officer: Chief Accounting Officer C/O LINKEDIN CORPORATION 2029 STIERLIN COURT MOUNTAIN VIEW CA 94043
Kimmitt Robert M director C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Travis Tracey Thomas director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: TRAVIS TRACEY THOMAS a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Sandberg Sheryl director, officer: Chief Operating Officer 1 FACEBOOK WAY MENLO PARK CA 94025
Killefer Nancy director 3170 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042
Houston Andrew director 333 BRANNAN STREET SAN FRANCISCO CA 94107
Schroepfer Michael Todd officer: Chief Technology Officer C/O FACEBOOK INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Cox Christopher K officer: Chief Product Officer C/O FACEBOOK, INC. 1601 WILLOW ROAD MENLO PARK CA 94025
Andreessen Marc L director C/O ARNOLD & PORTER LLP 3 EMBARCADERO CENTER 7TH FLOOR SAN FRANCISCO CA 94111
Alford Peggy director 435 TASSO STREET PALO ALTO CA 94301
Thiel Peter director 9200 SUNSET BOULEVARD SUITE 1110 WEST HOLLYWOOD CA 90069
Zients Jeffrey D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: ZIENTS JEFFREY D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}

Meta Platforms Headlines

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