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Sonos Beneish M-Score

: -0.84 (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 -0.84 higher than -1.78, which implies that the company might have manipulated its financial results.

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

SONO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.57   Med: -2.12   Max: 0.17
Current: -0.84

During the past 7 years, the highest Beneish M-Score of Sonos was 0.17. The lowest was -3.57. And the median was -2.12.


Sonos Beneish M-Score Historical Data

The historical data trend for Sonos'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.

Sonos Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21
Beneish M-Score
Premium Member Only Premium Member Only - - -2.93 0.17 -2.16

Sonos 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 -2.82 -2.16 -2.08 -1.84 -0.84

Competitive Comparison

For the Consumer Electronics subindustry, Sonos'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.

   

Sonos Beneish M-Score Distribution

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

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



Sonos 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 Sonos 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 * 1.6783+0.528 * 1.0144+0.404 * 2.9369+0.892 * 1.0581+0.115 * 0.9436
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0458+4.679 * 0.0453-0.327 * 1.0592
=-0.84

* 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 $125 Mil.
Revenue was 371.783 + 399.781 + 664.481 + 359.54 = $1,796 Mil.
Gross Profit was 175.848 + 179.034 + 317.385 + 166.932 = $839 Mil.
Total Current Assets was $923 Mil.
Total Assets was $1,243 Mil.
Property, Plant and Equipment(Net PPE) was $104 Mil.
Depreciation, Depletion and Amortization(DDA) was $36 Mil.
Selling, General, & Admin. Expense(SGA) was $447 Mil.
Total Current Liabilities was $505 Mil.
Long-Term Debt & Capital Lease Obligation was $26 Mil.
Net Income was -0.597 + 8.566 + 123.481 + -8.744 = $123 Mil.
Non Operating Income was -9.858 + -2.281 + -1.402 + -2.271 = $-16 Mil.
Cash Flow from Operations was -6.717 + -97.56 + 179.934 + 6.485 = $82 Mil.
Total Receivables was $70 Mil.
Revenue was 378.672 + 332.949 + 645.584 + 339.837 = $1,697 Mil.
Gross Profit was 177.861 + 165.776 + 299.425 + 161.536 = $805 Mil.
Total Current Assets was $912 Mil.
Total Assets was $1,084 Mil.
Property, Plant and Equipment(Net PPE) was $108 Mil.
Depreciation, Depletion and Amortization(DDA) was $35 Mil.
Selling, General, & Admin. Expense(SGA) was $404 Mil.
Total Current Liabilities was $401 Mil.
Long-Term Debt & Capital Lease Obligation was $37 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)
=(124.884 / 1795.585) / (70.329 / 1697.042)
=0.06955059 / 0.04144211
=1.6783

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)
=(804.598 / 1697.042) / (839.199 / 1795.585)
=0.47411791 / 0.46736802
=1.0144

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 - (923.464 + 103.955) / 1243.23) / (1 - (911.694 + 108.327) / 1084.098)
=0.17358896 / 0.05910628
=2.9369

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
=1795.585 / 1697.042
=1.0581

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))
=(34.523 / (34.523 + 108.327)) / (35.792 / (35.792 + 103.955))
=0.24167308 / 0.25611999
=0.9436

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)
=(446.564 / 1795.585) / (403.587 / 1697.042)
=0.24870112 / 0.23781792
=1.0458

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)
=((26.118 + 505.22) / 1243.23) / ((36.501 + 400.919) / 1084.098)
=0.42738512 / 0.40348751
=1.0592

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
=(122.706 - -15.812 - 82.142) / 1243.23
=0.0453

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.

Sonos has a M-score of -0.84 signals that the company is likely to be a manipulator.


Sonos Business Description

Sonos logo
Traded in Other Exchanges
Address
614 Chapala Street, Santa Barbara, CA, USA, 93101
Sonos Inc is engaged in providing home sound systems. The company's product profile includes speaker sets and other accessories like boost, mounts, stands, and cables and networking. Geographically, the company operates in the Americas, Europe, the Middle East and Africa, and the Asia Pacific. Generating a majority of its revenue from the Americas.
Executives
Panay Panos director 614 CHAPALA STREET SANTA BARBARA CA 93101
Findlay Deirdre director C/O SONOS, INC. 614 CHAPALA STREET SANTA BARBARA CA 93101
Coles Joanna director C/O SNAP INC. 3000 31ST STREET SANTA MONICA CA 90405
Perri David officer: Chief Operations Officer C/O SONOS, INC. 614 CHAPALA STREET SANTA BARBARA CA 93101
Fraser Anna officer: Chief People Officer C/O SONOS INC. 614 CHAPALA STREET SANTA BARBARA CA 93101
Lazarus Edward P officer: Chief Legal Officer & Secty. C/O TRIBUNE COMPANY 435 NORTH MICHIGAN AVENUE CHICAGO IL 60611
Index Ventures Growth I (jersey) L.p. 10 percent owner NO.1 SEATON PLACE, ST. HELIER JERSEY (CHANNEL ISLANDS) XX JE4 8YJ
Volpi Michelangelo director C/O HORTONWORKS, INC. 3640 W. BAYSHORE RD. PALO ALTO CA 94303
Index Venture Growth Associates I Ltd 10 percent owner 5TH FLOOR, 44 ESPLANADE ST HELIER, CHANNEL ISLANDS Y9 JE1 3FG
Index Ventures Growth I Parallel Entrepreneur Fund (jersey) L.p. 10 percent owner NO.1 SEATON PLACE, ST. HELIER JERSEY (CHANNEL ISLANDS) XX JE4 8YJ
Yucca (jersey) Slp 10 percent owner NO. 1 SEATON PLACE ST. HELIER Y9 Y9 JE48YJ
Spence Patrick director, officer: Chief Executive Officer C/O SONOS, INC. 614 CHAPALA STREET SANTA BARBARA CA 93101
Giannetto Michael officer: Chief Financial Officer 210 CARNEGIE CENTER PRINCETON NJ 08540
Conrad Thomas director 2101 WEBSTER STREET SUITE 1650 OAKLAND CA 94612
Kkr Stream Holdings Llc 10 percent owner 9 WEST 57TH STREET, SUITE 4200 NEW YORK NY 10019

Sonos Headlines

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