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Qualcomm Beneish M-Score

: -1.29 (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.

Warning Sign:

Beneish M-Score -1.29 higher than -1.78, which implies that the company might have manipulated its financial results.

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

NAS:QCOM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.38   Med: -2.53   Max: 1.06
Current: -1.29

-4.38
1.06

During the past 13 years, the highest Beneish M-Score of Qualcomm was 1.06. The lowest was -4.38. And the median was -2.53.


Qualcomm Beneish M-Score Historical Data

The historical data trend for Qualcomm'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.

Qualcomm Annual Data
Trend Sep11 Sep12 Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.56 -2.36 -4.10 -3.37 -1.02

Qualcomm Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -2.78 -1.02 -2.14 -2.57 -1.29

Competitive Comparison

For the Semiconductors subindustry, Qualcomm'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.

   

Qualcomm Beneish M-Score Distribution

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

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



Qualcomm 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 Qualcomm 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 * 1.953+0.528 * 0.9523+0.404 * 0.9198+0.892 * 1.6288+0.115 * 1.136
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6735+4.679 * -0.0633-0.327 * 0.8987
=-1.29

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $2,952 Mil.
Revenue was 8060 + 7935 + 8235 + 8346 = $32,576 Mil.
Gross Profit was 4656 + 4503 + 4746 + 5580 = $19,485 Mil.
Total Current Assets was $19,693 Mil.
Total Assets was $38,769 Mil.
Property, Plant and Equipment(Net PPE) was $4,424 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,496 Mil.
Selling, General, & Admin. Expense(SGA) was $2,272 Mil.
Total Current Liabilities was $11,460 Mil.
Long-Term Debt & Capital Lease Obligation was $13,695 Mil.
Net Income was 2027 + 1762 + 2455 + 2960 = $9,204 Mil.
Non Operating Income was 179 + 82 + 198 + -1 = $458 Mil.
Cash Flow from Operations was 3373 + 2911 + 3175 + 1741 = $11,200 Mil.
Accounts Receivable was $928 Mil.
Revenue was 4893 + 5216 + 5077 + 4814 = $20,000 Mil.
Gross Profit was 2813 + 2919 + 2964 + 2696 = $11,392 Mil.
Total Current Assets was $15,558 Mil.
Total Assets was $32,328 Mil.
Property, Plant and Equipment(Net PPE) was $3,487 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,404 Mil.
Selling, General, & Admin. Expense(SGA) was $2,071 Mil.
Total Current Liabilities was $7,914 Mil.
Long-Term Debt & Capital Lease Obligation was $15,425 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)
=(2952 / 32576) / (928 / 20000)
=0.09061886 / 0.0464
=1.953

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)
=(11392 / 20000) / (19485 / 32576)
=0.5696 / 0.59813973
=0.9523

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 - (19693 + 4424) / 38769) / (1 - (15558 + 3487) / 32328)
=0.37793082 / 0.41088221
=0.9198

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
=32576 / 20000
=1.6288

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))
=(1404 / (1404 + 3487)) / (1496 / (1496 + 4424))
=0.28705786 / 0.2527027
=1.136

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)
=(2272 / 32576) / (2071 / 20000)
=0.0697446 / 0.10355
=0.6735

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)
=((13695 + 11460) / 38769) / ((15425 + 7914) / 32328)
=0.64884315 / 0.72194383
=0.8987

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
=(9204 - 458 - 11200) / 38769
=-0.0633

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.

Qualcomm has a M-score of -1.29 signals that the company is likely to be a manipulator.


Qualcomm Beneish M-Score Related Terms

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


Qualcomm Business Description

Qualcomm logo
Industry
Technology » Semiconductors NAICS : 334118 SIC : 3577
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and also designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors.
Executives
Amon Cristiano R officer: President 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Rosenberg Donald J officer: EVP & General Counsel QUALCOMM INCORPORATED 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Rogers Alexander H officer: EVP & President, QTL 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Modoff Brian officer: EVP, Strategy and M&A 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Thompson James H officer: EVP, Engineering & CTO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Mollenkopf Steven M director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Mclaughlin Mark D director C/O PALO ALTO NETWORKS, INC. 4401 GREAT AMERICA PKWY SANTA CLARA CA 95054
Miller Jamie S director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Fields Mark director FORD MOTOR COMPANY ONE AMERICAN ROAD DEARBORN MI 48126
Smit Neil director C/O AMERICA ONLINE LATIN AMERICA, INC. 6600 N. ANDREWS AVE., SUITE 400 FT. LAUDERDALE FL 33309
Palkhiwala Akash J. officer: EVP & Chief Financial Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Polek Erin L officer: SVP & Chief Accounting Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Tricoire Jean-pascal director 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Ace Heather S officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500 SAN DIEGO CA 92130
Rosenfeld Irene B director 110 SE 6TH STREET 20TH FLOOR FORT LAUDERDALE FL 33301

Qualcomm Headlines

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