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Alphabet(Google) Beneish M-Score

: -2.65 (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 -2.65 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

GOOG' s Beneish M-Score Range Over the Past 10 Years
Min: -2.9   Med: -2.63   Max: -0.06
Current: -2.65

During the past 13 years, the highest Beneish M-Score of Alphabet(Google) was -0.06. The lowest was -2.90. And the median was -2.63.


Alphabet(Google) Beneish M-Score Historical Data

The historical data trend for Alphabet(Google)'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.

Alphabet(Google) Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.76 -2.70 -2.73 -2.79 -2.48

Alphabet(Google) Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.41 -2.47 -2.48 -2.58 -2.65

Competitive Comparison

For the Internet Content & Information subindustry, Alphabet(Google)'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.

   

Alphabet(Google) Beneish M-Score Distribution

For the Interactive Media industry and Communication Services sector, Alphabet(Google)'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Alphabet(Google)'s Beneish M-Score falls into.



Alphabet(Google) 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 Alphabet(Google) 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 * 0.8937+0.528 * 0.982+0.404 * 1.0846+0.892 * 1.2627+0.115 * 1.0197
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0206+4.679 * -0.0693-0.327 * 1.0147
=-2.65

* 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 $37,073 Mil.
Revenue was 69685 + 68011 + 75325 + 65118 = $278,139 Mil.
Gross Profit was 39581 + 38412 + 42337 + 37497 = $157,827 Mil.
Total Current Assets was $172,371 Mil.
Total Assets was $355,185 Mil.
Property, Plant and Equipment(Net PPE) was $119,621 Mil.
Depreciation, Depletion and Amortization(DDA) was $14,424 Mil.
Selling, General, & Admin. Expense(SGA) was $40,002 Mil.
Total Current Liabilities was $61,354 Mil.
Long-Term Debt & Capital Lease Obligation was $26,431 Mil.
Net Income was 16002 + 16436 + 20642 + 18936 = $72,016 Mil.
Non Operating Income was -842 + -1491 + 2256 + 1723 = $1,646 Mil.
Cash Flow from Operations was 19422 + 25106 + 24934 + 25539 = $95,001 Mil.
Total Receivables was $32,851 Mil.
Revenue was 61880 + 55314 + 56898 + 46173 = $220,265 Mil.
Gross Profit was 35653 + 31211 + 30818 + 25056 = $122,738 Mil.
Total Current Assets was $175,697 Mil.
Total Assets was $335,387 Mil.
Property, Plant and Equipment(Net PPE) was $104,675 Mil.
Depreciation, Depletion and Amortization(DDA) was $12,901 Mil.
Selling, General, & Admin. Expense(SGA) was $31,038 Mil.
Total Current Liabilities was $55,741 Mil.
Long-Term Debt & Capital Lease Obligation was $25,947 Mil.




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)
=(37073 / 278139) / (32851 / 220265)
=0.13328947 / 0.14914308
=0.8937

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)
=(122738 / 220265) / (157827 / 278139)
=0.55722879 / 0.5674393
=0.982

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 - (172371 + 119621) / 355185) / (1 - (175697 + 104675) / 335387)
=0.17791573 / 0.16403438
=1.0846

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
=278139 / 220265
=1.2627

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))
=(12901 / (12901 + 104675)) / (14424 / (14424 + 119621))
=0.10972477 / 0.10760565
=1.0197

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)
=(40002 / 278139) / (31038 / 220265)
=0.14382018 / 0.14091208
=1.0206

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)
=((26431 + 61354) / 355185) / ((25947 + 55741) / 335387)
=0.24715289 / 0.24356341
=1.0147

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
=(72016 - 1646 - 95001) / 355185
=-0.0693

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.

Alphabet(Google) has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.


Alphabet(Google) Beneish M-Score Related Terms

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Alphabet(Google) Business Description

Alphabet(Google) logo
Address
1600 Amphitheatre Parkway, Mountain View, CA, USA, 94043
Alphabet Inc is a holding company, with Google, the Internet media giant, as a wholly owned subsidiary. Google generates 99% of Alphabet revenue, of which more than 85% is from online ads. Google's other revenue is from sales of apps and content on Google Play and YouTube, as well as cloud service fees and other licensing revenue. Sales of hardware such as Chromebooks, the Pixel smartphone, and smart homes products, which include Nest and Google Home, also contribute to other revenue. Alphabet's moonshot investments are in its other bets segment, where it bets on technology to enhance health (Verily), faster Internet access to homes (Google Fiber), self-driving cars (Waymo), and more. Alphabet's operating margin has been 25%-30%, with Google at 30% and other bets operating at a loss.
Executives
Hennessy John L director
Mather Ann director
Porat Ruth officer: SVP, CFO C/O GOOGLE INC. 1600 AMPHITHEATRE PRKW MOUNTAIN VIEW CA 94043
Pichai Sundar director, officer: Chief Executive Officer GOOGLE INC. 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Doerr L John director C/O KLEINER PERKINS CAUFIELD & BYERS 2750 SAND HILL ROAD MENLO PARK CA 94025
Arnold Frances director 5200 ILLUMINA WAY SAN DIEGO CA 92122
Ferguson Roger W. Jr. director CORNING INCORPORATED ONE RIVERFRONT PLAZA CORNING NY 14831
Shriram Kavitark Ram director 1600 AMPHITHEATRE PARKWAY MOUNTAIN VIEW CA 94043
Mulally Alan R director P.O. BOX 995 MERCER ISLAND WA 98040
Washington Robin L director 333 LAKESIDE DRIVE FOSTER CITY CA 94404
Brin Sergey director, 10 percent owner 555 BRYANT STREET, #367 PALO ALTO CA 94031
Drummond David C officer: SVP, Corporate Development 1600 AMIPHITHEATRE PARKWAY BUILDING 41 MOUNTAIN VIEW CA 94043
Schmidt Eric E director 1010 ALMA STREET MENLO PARK CA 94025
Greene Diane B director C/O ALPHABET INC., 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043
Campbell James Grier officer: VP, Alphabet Corp. Controller 1600 AMPHITHEATRE PKWY MOUNTAIN VIEW CA 94043

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