Thoughtworks Holding Beneish M-Score Historical Data
The historical data trend for Thoughtworks Holding'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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Thoughtworks Holding Annual Data
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Trend |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
|
- |
- |
- |
-2.48 |
-2.97 |
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Thoughtworks Holding Quarterly Data
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Dec19 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
|
|
|
|
|
|
|
|
|
|
|
-2.48 |
-2.86 |
-2.93 |
-2.87 |
-2.97 |
Competitive Comparison
For the Information Technology Services subindustry, Thoughtworks Holding'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.
Thoughtworks Holding Beneish M-Score Distribution
For the Software industry and Technology sector, Thoughtworks Holding's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Thoughtworks Holding's Beneish M-Score falls into.
Thoughtworks Holding 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 Thoughtworks Holding 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 * 1.0045 | + | 0.528 * 0.8494 | + | 0.404 * 1.1119 | + | 0.892 * 0.8693 | + | 0.115 * 0.8468 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.024 | + | 4.679 * -0.077003 | - | 0.327 * 0.8703 |
| = | -2.97 |
* 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 $283 Mil.
Revenue was 252.386 + 280.159 + 287.215 + 307.056 = $1,127 Mil.
Gross Profit was 71.431 + 94.174 + 90.877 + 97.534 = $354 Mil.
Total Current Assets was $428 Mil.
Total Assets was $1,327 Mil.
Property, Plant and Equipment(Net PPE) was $68 Mil.
Depreciation, Depletion and Amortization(DDA) was $36 Mil.
Selling, General, & Admin. Expense(SGA) was $332 Mil.
Total Current Liabilities was $159 Mil.
Long-Term Debt & Capital Lease Obligation was $316 Mil.
Net Income was -22.43 + -25.852 + -12.272 + -8.107 = $-69 Mil.
Non Operating Income was 8.245 + -24.336 + 0.105 + 0.462 = $-16 Mil.
Cash Flow from Operations was 12.466 + 6.355 + -2.804 + 33.047 = $49 Mil.
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Total Receivables was $324 Mil.
Revenue was 310.744 + 332.447 + 332.107 + 320.94 = $1,296 Mil.
Gross Profit was 104.805 + 88.308 + 81.645 + 71.175 = $346 Mil.
Total Current Assets was $557 Mil.
Total Assets was $1,462 Mil.
Property, Plant and Equipment(Net PPE) was $82 Mil.
Depreciation, Depletion and Amortization(DDA) was $34 Mil.
Selling, General, & Admin. Expense(SGA) was $373 Mil.
Total Current Liabilities was $180 Mil.
Long-Term Debt & Capital Lease Obligation was $422 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) |
| = | (283.092 / 1126.816) | / | (324.194 / 1296.238) |
| = | 0.251232 | / | 0.250104 |
| | = | 1.0045 |
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) |
| = | (345.933 / 1296.238) | / | (354.016 / 1126.816) |
| = | 0.266875 | / | 0.314174 |
| | = | 0.8494 |
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 - (428.358 + 67.817) / 1327.236) | / | (1 - (556.69 + 81.921) / 1461.85) |
| = | 0.626159 | / | 0.563149 |
| | = | 1.1119 |
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 |
| = | 1126.816 | / | 1296.238 |
| | = | 0.8693 |
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)) |
| = | (34.446 / (34.446 + 81.921)) | / | (36.45 / (36.45 + 67.817)) |
| = | 0.296012 | / | 0.349583 |
| | = | 0.8468 |
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) |
| = | (331.83 / 1126.816) | / | (372.761 / 1296.238) |
| = | 0.294485 | / | 0.287571 |
| | = | 1.024 |
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) |
| = | ((315.826 + 159.28) / 1327.236) | / | ((421.741 + 179.57) / 1461.85) |
| = | 0.357966 | / | 0.411336 |
| | = | 0.8703 |
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 |
| = | (-68.661 - -15.524 | - | 49.064) | / | 1327.236 |
| | = | -0.077003 |
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.
Thoughtworks Holding has a M-score of -2.97 suggests that the company is unlikely to be a manipulator.
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