Western Digital Beneish M-Score Historical Data
The historical data trend for Western Digital'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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Western Digital Annual Data
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Trend |
Jun14 |
Jun15 |
Jun16 |
Jun17 |
Jun18 |
Jun19 |
Jun20 |
Jun21 |
Jun22 |
Jun23 |
| Beneish M-Score |
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-2.98 |
-1.77 |
-2.78 |
-2.33 |
-2.59 |
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Western Digital 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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-2.80 |
-2.70 |
-2.59 |
-1.88 |
-1.75 |
Competitive Comparison
For the Computer Hardware subindustry, Western Digital'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.
Western Digital Beneish M-Score Distribution
For the Hardware industry and Technology sector, Western Digital's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Western Digital's Beneish M-Score falls into.
Western Digital 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 Western Digital 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 * 1.1187 | + | 0.528 * 3.0496 | + | 0.404 * 1.0473 | + | 0.892 * 0.7146 | + | 0.115 * 1.1075 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1768 | + | 4.679 * -0.038794 | - | 0.327 * 1.0837 |
| = | -1.75 |
* 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 $1,523 Mil.
Revenue was 3032 + 2750 + 2672 + 2803 = $11,257 Mil.
Gross Profit was 492 + 99 + 92 + 286 = $969 Mil.
Total Current Assets was $7,838 Mil.
Total Assets was $24,385 Mil.
Property, Plant and Equipment(Net PPE) was $3,315 Mil.
Depreciation, Depletion and Amortization(DDA) was $688 Mil.
Selling, General, & Admin. Expense(SGA) was $878 Mil.
Total Current Liabilities was $4,693 Mil.
Long-Term Debt & Capital Lease Obligation was $7,351 Mil.
Net Income was -287 + -685 + -715 + -572 = $-2,259 Mil.
Non Operating Income was -13 + -53 + -53 + -27 = $-146 Mil.
Cash Flow from Operations was -92 + -626 + -68 + -381 = $-1,167 Mil.
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Total Receivables was $1,905 Mil.
Revenue was 3107 + 3736 + 4528 + 4381 = $15,752 Mil.
Gross Profit was 528 + 981 + 1445 + 1181 = $4,135 Mil.
Total Current Assets was $8,381 Mil.
Total Assets was $25,047 Mil.
Property, Plant and Equipment(Net PPE) was $3,688 Mil.
Depreciation, Depletion and Amortization(DDA) was $867 Mil.
Selling, General, & Admin. Expense(SGA) was $1,044 Mil.
Total Current Liabilities was $4,382 Mil.
Long-Term Debt & Capital Lease Obligation was $7,033 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) |
| = | (1523 / 11257) | / | (1905 / 15752) |
| = | 0.135294 | / | 0.120937 |
| | = | 1.1187 |
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) |
| = | (4135 / 15752) | / | (969 / 11257) |
| = | 0.262506 | / | 0.08608 |
| | = | 3.0496 |
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 - (7838 + 3315) / 24385) | / | (1 - (8381 + 3688) / 25047) |
| = | 0.542629 | / | 0.518146 |
| | = | 1.0473 |
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 |
| = | 11257 | / | 15752 |
| | = | 0.7146 |
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)) |
| = | (867 / (867 + 3688)) | / | (688 / (688 + 3315)) |
| = | 0.19034 | / | 0.171871 |
| | = | 1.1075 |
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) |
| = | (878 / 11257) | / | (1044 / 15752) |
| = | 0.077996 | / | 0.066277 |
| | = | 1.1768 |
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) |
| = | ((7351 + 4693) / 24385) | / | ((7033 + 4382) / 25047) |
| = | 0.49391 | / | 0.455743 |
| | = | 1.0837 |
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 |
| = | (-2259 - -146 | - | -1167) | / | 24385 |
| | = | -0.038794 |
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.
Western Digital has a M-score of -1.75 signals that the company is likely to be a manipulator.
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