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NetApp Beneish M-Score

: -2.54 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

NetApp has a M-score of -2.54 suggests that the company is not a manipulator.

NAS:NTAP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.69   Med: -2.75   Max: 3.23
Current: -2.54

-3.69
3.23

During the past 13 years, the highest Beneish M-Score of NetApp was 3.23. The lowest was -3.69. And the median was -2.75.


NetApp Beneish M-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

NetApp Annual Data
Apr11 Apr12 Apr13 Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Apr20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.56 -2.79 -2.91 -2.43 -2.83

NetApp Quarterly Data
Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
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 -2.79 -2.57 -2.64 -2.83 -2.54

Competitive Comparison
* 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.


NetApp Beneish M-Score Distribution

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



NetApp 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 NetApp 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 * 1.2016+0.528 * 0.9574+0.404 * 1.055+0.892 * 0.9274+0.115 * 0.9946
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0408+4.679 * -0.0238-0.327 * 1.196
=-2.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul20) TTM:Last Year (Jul19) TTM:
Accounts Receivable was USD604 Mil.
Revenue was 1303 + 1401 + 1404 + 1371 = USD5,479 Mil.
Gross Profit was 872 + 941 + 941 + 925 = USD3,679 Mil.
Total Current Assets was USD4,817 Mil.
Total Assets was USD8,416 Mil.
Property, Plant and Equipment(Net PPE) was USD872 Mil.
Depreciation, Depletion and Amortization(DDA) was USD193 Mil.
Selling, General, & Admin. Expense(SGA) was USD1,862 Mil.
Total Current Liabilities was USD2,976 Mil.
Long-Term Debt & Capital Lease Obligation was USD2,720 Mil.
Net Income was 77 + 196 + 277 + 243 = USD793 Mil.
Non Operating Income was -30 + -20 + 12 + 41 = USD3 Mil.
Cash Flow from Operations was 240 + 383 + 420 + -53 = USD990 Mil.
Accounts Receivable was USD542 Mil.
Revenue was 1236 + 1592 + 1563 + 1517 = USD5,908 Mil.
Gross Profit was 816 + 1026 + 982 + 974 = USD3,798 Mil.
Total Current Assets was USD4,516 Mil.
Total Assets was USD7,811 Mil.
Property, Plant and Equipment(Net PPE) was USD896 Mil.
(DDA) was USD197 Mil.
Selling, General, & Admin. Expense(SGA) was USD1,929 Mil.
Total Current Liabilities was USD3,175 Mil.
Long-Term Debt & Capital Lease Obligation was USD1,245 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)
=(604 / 5479) / (542 / 5908)
=0.11023909 / 0.09174001
=1.2016

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)
=(3798 / 5908) / (3679 / 5479)
=0.64285714 / 0.6714729
=0.9574

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 - (4817 + 872) / 8416) / (1 - (4516 + 896) / 7811)
=0.32402567 / 0.30713097
=1.055

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
=5479 / 5908
=0.9274

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))
=(197 / (197 + 896)) / (193 / (193 + 872))
=0.18023788 / 0.18122066
=0.9946

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)
=(1862 / 5479) / (1929 / 5908)
=0.33984304 / 0.32650643
=1.0408

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)
=((2720 + 2976) / 8416) / ((1245 + 3175) / 7811)
=0.67680608 / 0.56586865
=1.196

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
=(793 - 3 - 990) / 8416
=-0.0238

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

NetApp has a M-score of -2.54 suggests that the company will not be a manipulator.


NetApp Beneish M-Score Headlines

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