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Zoom Video Communications Beneish M-Score

: 0.00 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Zoom Video Communications has a M-score of -1.54 signals that the company is a manipulator.

During the past 4 years, the highest Beneish M-Score of Zoom Video Communications was 0.00. The lowest was -2.22. And the median was -2.22.


Zoom Video Communications Beneish M-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Zoom Video Communications Annual Data
Jan17 Jan18 Jan19 Jan20
Beneish M-Score 0.00 0.00 0.00 -2.22

Zoom Video Communications Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 -2.22 0.00 0.00

Competitive Comparison
* 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.


Zoom Video Communications Beneish M-Score Distribution

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



Zoom Video Communications 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 Zoom Video Communications 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 * 1.063+0.528 * 1.1041+0.404 * 1.8974+0.892 * 2.9037+0.115 * 0.8496
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7129+4.679 * -0.2016-0.327 * 1.9864
=-1.54

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Jul20) TTM:Last Year (Jul19) TTM:
Accounts Receivable was $295 Mil.
Revenue was 663.52 + 328.167 + 188.251 + 166.593 = $1,347 Mil.
Gross Profit was 471.249 + 224.46 + 155.704 + 135.748 = $987 Mil.
Total Current Assets was $2,232 Mil.
Total Assets was $2,625 Mil.
Property, Plant and Equipment(Net PPE) was $157 Mil.
Depreciation, Depletion and Amortization(DDA) was $21 Mil.
Selling, General, & Admin. Expense(SGA) was $659 Mil.
Total Current Liabilities was $1,287 Mil.
Long-Term Debt & Capital Lease Obligation was $63 Mil.
Net Income was 185.989 + 27.075 + 15.339 + 2.211 = $231 Mil.
Non Operating Income was 0 + 0 + 0 + 0.978 = $1 Mil.
Cash Flow from Operations was 401.346 + 258.965 + 36.554 + 61.93 = $759 Mil.
Accounts Receivable was $96 Mil.
Revenue was 145.826 + 121.988 + 105.8 + 90.121 = $464 Mil.
Gross Profit was 117.926 + 97.884 + 86.275 + 73.278 = $375 Mil.
Total Current Assets was $916 Mil.
Total Assets was $1,070 Mil.
Property, Plant and Equipment(Net PPE) was $103 Mil.
(DDA) was $12 Mil.
Selling, General, & Admin. Expense(SGA) was $319 Mil.
Total Current Liabilities was $229 Mil.
Long-Term Debt & Capital Lease Obligation was $48 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)
=(295.33 / 1346.531) / (95.682 / 463.735)
=0.21932655 / 0.20632905
=1.063

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)
=(375.363 / 463.735) / (987.161 / 1346.531)
=0.80943427 / 0.7331142
=1.1041

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 - (2232.102 + 156.586) / 2624.941) / (1 - (916.059 + 103.113) / 1069.923)
=0.09000317 / 0.04743425
=1.8974

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
=1346.531 / 463.735
=2.9037

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))
=(11.564 / (11.564 + 103.113)) / (21.089 / (21.089 + 156.586))
=0.10083975 / 0.11869425
=0.8496

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)
=(659.433 / 1346.531) / (318.574 / 463.735)
=0.48972731 / 0.68697424
=0.7129

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)
=((63.105 + 1287.326) / 2624.941) / ((48.104 + 228.996) / 1069.923)
=0.51446147 / 0.2589906
=1.9864

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
=(230.614 - 0.978 - 758.795) / 2624.941
=-0.2016

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Zoom Video Communications has a M-score of -1.54 signals that the company is likely to be a manipulator.


Zoom Video Communications Beneish M-Score Headlines

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