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Nutanix (NAS:NTNX) Beneish M-Score

: -3.90 (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.

Good Sign:

Beneish M-Score -3.9 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NTNX' s Beneish M-Score Range Over the Past 10 Years
Min: -4.49   Med: -3.9   Max: -1.48
Current: -3.9

During the past 10 years, the highest Beneish M-Score of Nutanix was -1.48. The lowest was -4.49. And the median was -3.90.


Nutanix Beneish M-Score Historical Data

The historical data trend for Nutanix'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.

Nutanix Annual Data
Trend Jul13 Jul14 Jul15 Jul16 Jul17 Jul18 Jul19 Jul20 Jul21 Jul22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.27 -4.24 -4.38 -4.14 -3.93

Nutanix Quarterly Data
Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22
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 -4.05 -3.71 -3.39 -3.93 -3.90

Competitive Comparison

For the Software - Infrastructure subindustry, Nutanix'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.

   

Nutanix Beneish M-Score Distribution

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

* The bar in red indicates where Nutanix's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



Nutanix 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 Nutanix 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 * 0.6446+0.528 * 0.9848+0.404 * 0.9196+0.892 * 1.1204+0.115 * 1.086
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8422+4.679 * -0.2542-0.327 * 1.0253
=-3.90

* 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 (Oct22) TTM:Last Year (Oct21) TTM:
Total Receivables was $90 Mil.
Revenue was 433.609 + 385.54 + 403.658 + 413.081 = $1,636 Mil.
Gross Profit was 351.114 + 305.648 + 323.809 + 333.112 = $1,314 Mil.
Total Current Assets was $1,672 Mil.
Total Assets was $2,357 Mil.
Property, Plant and Equipment(Net PPE) was $223 Mil.
Depreciation, Depletion and Amortization(DDA) was $85 Mil.
Selling, General, & Admin. Expense(SGA) was $1,137 Mil.
Total Current Liabilities was $1,148 Mil.
Long-Term Debt & Capital Lease Obligation was $1,258 Mil.
Net Income was -99.116 + -150.99 + -111.635 + -115.061 = $-477 Mil.
Non Operating Income was -3.198 + 1.686 + -1.474 + -0.728 = $-4 Mil.
Cash Flow from Operations was 65.513 + 38.004 + -3.167 + 25.767 = $126 Mil.
Total Receivables was $125 Mil.
Revenue was 378.517 + 390.72 + 344.508 + 346.382 = $1,460 Mil.
Gross Profit was 297.071 + 312.201 + 270.034 + 275.428 = $1,155 Mil.
Total Current Assets was $1,552 Mil.
Total Assets was $2,255 Mil.
Property, Plant and Equipment(Net PPE) was $221 Mil.
Depreciation, Depletion and Amortization(DDA) was $94 Mil.
Selling, General, & Admin. Expense(SGA) was $1,205 Mil.
Total Current Liabilities was $905 Mil.
Long-Term Debt & Capital Lease Obligation was $1,339 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)
=(90 / 1635.888) / (124.628 / 1460.127)
=0.05501599 / 0.08535422
=0.6446

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)
=(1154.734 / 1460.127) / (1313.683 / 1635.888)
=0.79084491 / 0.80303969
=0.9848

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 - (1672.095 + 222.883) / 2357.422) / (1 - (1552.395 + 221.261) / 2254.566)
=0.19616513 / 0.21330491
=0.9196

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
=1635.888 / 1460.127
=1.1204

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))
=(94.165 / (94.165 + 221.261)) / (84.5 / (84.5 + 222.883))
=0.29853278 / 0.27490134
=1.086

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)
=(1137.237 / 1635.888) / (1205.287 / 1460.127)
=0.69518023 / 0.82546724
=0.8422

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)
=((1258.079 + 1147.799) / 2357.422) / ((1339.331 + 904.787) / 2254.566)
=1.02055466 / 0.99536585
=1.0253

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
=(-476.802 - -3.714 - 126.117) / 2357.422
=-0.2542

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.

Nutanix has a M-score of -3.90 suggests that the company is unlikely to be a manipulator.


Nutanix Beneish M-Score Related Terms

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Nutanix (NAS:NTNX) Business Description

Nutanix logo
Traded in Other Exchanges
Address
1740 Technology Drive, Suite 150, San Jose, CA, USA, 95110
Nutanix Inc provides native hybrid cloud capabilities for businesses. The company offers Enterprise Cloud Platform to businesses for various uses such as web-scale engineering and consumer-grade design, virtualization, and storage into a resilient, and software-defined solution. Geographically, it derives a majority of revenue from the United States and also has a presence in Europe, the Middle East, Asia Pacific, Africa, and other regions.
Executives
Rukmini Sivaraman officer: Chief Financial Officer 1740 TECHNOLOGY DR., SUITE 150, SAN JOSE CA 95110
Teresa Gayle Sheppard director C/O ENVISTA HOLDINGS CORPORATION, 200 S. KRAEMER BLVD., BLDG. E, BREA CA 92821
Susan L Bostrom director
Craig Conway director SALESFORCE TOWER, 415 MISSION STREET, 3RD FLOOR, SAN FRANCISCO CA 94105
Brian Mark Stevens director 25 HOOPER HILL RD., NEW BOSTON NH 03070
Virginia Gambale director C/O JETBLUE AIRWAYS CORP., 27-01 QUEENS PLAZA NORTH, LONG ISLAND CITY NY 11101
Rajiv Ramaswami director, officer: President and CEO 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Kaddaras Christopher Nicholas Jr officer: Chief Revenue Officer C/O NUTANIX, INC., 1740 TECHNOLOGY DR., STE 150, SAN JOSE CA 95110
Tyler Wall officer: Chief Legal Officer CHORDIANT SOFTWARE, INC., 20400 STEVENS CREEK BLVD., STE. 400, CUPERTINO CA 94014
Aaron Boynton officer: Chief Accounting Officer C/O NUTANIX, INC., 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110
Tarkan Maner officer: Chief Commercial Officer C/O NUTANIX, INC., 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110
David Humphrey director C/O BAIN CAPITAL PARTNERS, LLC, JOHN HANCOCK TOWER, 200 CLARENDON STREET, BOSTON MA 02116
De Groen Max Pieter director 200 CLARENDON STREET, BOSTON MA 02116
Sohaib Abbasi director 100 EAST DAVIE STREET, RALEIGH NC 27601
Louis J Attanasio officer: Chief Revenue Officer 1740 TECHNOLOGY AVE., SUITE 150, SAN JOSE CA 95110

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