Rapid7 Beneish M-Score Historical Data
The historical data trend for Rapid7'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.
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Rapid7 Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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|
|
|
|
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-2.53 |
-2.71 |
-2.74 |
-3.13 |
-3.01 |
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Rapid7 Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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|
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|
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-3.13 |
-3.02 |
-3.08 |
-3.05 |
-3.01 |
Competitive Comparison
For the Software - Infrastructure subindustry, Rapid7'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.
Rapid7 Beneish M-Score Distribution
For the Software industry and Technology sector, Rapid7's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Rapid7's Beneish M-Score falls into.
Rapid7 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 Rapid7 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 * 0.9552 | + | 0.528 * 0.9788 | + | 0.404 * 0.9854 | + | 0.892 * 1.1352 | + | 0.115 * 0.7029 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8911 | + | 4.679 * -0.123563 | - | 0.327 * 0.9959 |
| = | -3.01 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $164.9 Mil.
Revenue was 205.268 + 198.843 + 190.422 + 183.174 = $777.7 Mil.
Gross Profit was 145.52 + 141.013 + 132.258 + 127.175 = $546.0 Mil.
Total Current Assets was $634.5 Mil.
Total Assets was $1,505.3 Mil.
Property, Plant and Equipment(Net PPE) was $94.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $45.9 Mil.
Selling, General, & Admin. Expense(SGA) was $396.9 Mil.
Total Current Liabilities was $569.8 Mil.
Long-Term Debt & Capital Lease Obligation was $1,011.1 Mil.
Net Income was 20.048 + -76.611 + -66.782 + -25.915 = $-149.3 Mil.
Non Operating Income was 1.34 + -28.067 + -40.499 + -0.307 = $-67.5 Mil.
Cash Flow from Operations was 63.466 + 3.665 + 31.305 + 5.842 = $104.3 Mil.
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Total Receivables was $152.0 Mil.
Revenue was 184.479 + 175.765 + 167.455 + 157.384 = $685.1 Mil.
Gross Profit was 129.544 + 121.915 + 113.18 + 106.095 = $470.7 Mil.
Total Current Assets was $510.3 Mil.
Total Assets was $1,359.0 Mil.
Property, Plant and Equipment(Net PPE) was $137.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $41.0 Mil.
Selling, General, & Admin. Expense(SGA) was $392.4 Mil.
Total Current Liabilities was $531.3 Mil.
Long-Term Debt & Capital Lease Obligation was $901.9 Mil.
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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) |
| = | (164.862 / 777.707) | / | (152.045 / 685.083) |
| = | 0.211985 | / | 0.221937 |
| | = | 0.9552 |
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) |
| = | (470.734 / 685.083) | / | (545.966 / 777.707) |
| = | 0.68712 | / | 0.70202 |
| | = | 0.9788 |
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 - (634.45 + 94.335) / 1505.348) | / | (1 - (510.307 + 137.233) / 1358.991) |
| = | 0.515869 | / | 0.523514 |
| | = | 0.9854 |
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 |
| = | 777.707 | / | 685.083 |
| | = | 1.1352 |
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)) |
| = | (41.038 / (41.038 + 137.233)) | / | (45.939 / (45.939 + 94.335)) |
| = | 0.2302 | / | 0.327495 |
| | = | 0.7029 |
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) |
| = | (396.912 / 777.707) | / | (392.378 / 685.083) |
| = | 0.510362 | / | 0.572745 |
| | = | 0.8911 |
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) |
| = | ((1011.126 + 569.792) / 1505.348) | / | ((901.894 + 531.267) / 1358.991) |
| = | 1.050201 | / | 1.054577 |
| | = | 0.9959 |
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 |
| = | (-149.26 - -67.533 | - | 104.278) | / | 1505.348 |
| | = | -0.123563 |
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.
Rapid7 has a M-score of -3.01 suggests that the company is unlikely to be a manipulator.
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