Salesforce Beneish M-Score Historical Data
The historical data trend for Salesforce'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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Salesforce Annual Data
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Trend |
Jan15 |
Jan16 |
Jan17 |
Jan18 |
Jan19 |
Jan20 |
Jan21 |
Jan22 |
Jan23 |
Jan24 |
| Beneish M-Score |
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-2.53 |
-2.47 |
-2.46 |
-2.67 |
-2.66 |
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Salesforce Quarterly Data
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Apr19 |
Jul19 |
Oct19 |
Jan20 |
Apr20 |
Jul20 |
Oct20 |
Jan21 |
Apr21 |
Jul21 |
Oct21 |
Jan22 |
Apr22 |
Jul22 |
Oct22 |
Jan23 |
Apr23 |
Jul23 |
Oct23 |
Jan24 |
| Beneish M-Score |
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-2.67 |
-2.63 |
-2.60 |
-2.62 |
-2.66 |
Competitive Comparison
For the Software - Application subindustry, Salesforce'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.
Salesforce Beneish M-Score Distribution
For the Software industry and Technology sector, Salesforce's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Salesforce's Beneish M-Score falls into.
Salesforce 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 Salesforce 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 * 0.9546 | + | 0.528 * 0.9714 | + | 0.404 * 0.9727 | + | 0.892 * 1.1118 | + | 0.115 * 0.9228 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8613 | + | 4.679 * -0.05058 | - | 0.327 * 0.9772 |
| = | -2.66 |
* 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 (Jan24) TTM: | Last Year (Jan23) TTM: |
Total Receivables was $11,414 Mil.
Revenue was 9287 + 8720 + 8603 + 8247 = $34,857 Mil.
Gross Profit was 7139 + 6565 + 6490 + 6122 = $26,316 Mil.
Total Current Assets was $29,074 Mil.
Total Assets was $99,823 Mil.
Property, Plant and Equipment(Net PPE) was $6,055 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,959 Mil.
Selling, General, & Admin. Expense(SGA) was $14,520 Mil.
Total Current Liabilities was $26,631 Mil.
Long-Term Debt & Capital Lease Obligation was $11,071 Mil.
Net Income was 1446 + 1224 + 1267 + 199 = $4,136 Mil.
Non Operating Income was -150 + -69 + -33 + -797 = $-1,049 Mil.
Cash Flow from Operations was 3403 + 1532 + 808 + 4491 = $10,234 Mil.
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Total Receivables was $10,755 Mil.
Revenue was 8384 + 7837 + 7720 + 7411 = $31,352 Mil.
Gross Profit was 6284 + 5749 + 5593 + 5366 = $22,992 Mil.
Total Current Assets was $26,395 Mil.
Total Assets was $98,849 Mil.
Property, Plant and Equipment(Net PPE) was $6,592 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,786 Mil.
Selling, General, & Admin. Expense(SGA) was $15,163 Mil.
Total Current Liabilities was $25,891 Mil.
Long-Term Debt & Capital Lease Obligation was $12,316 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) |
| = | (11414 / 34857) | / | (10755 / 31352) |
| = | 0.327452 | / | 0.34304 |
| | = | 0.9546 |
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) |
| = | (22992 / 31352) | / | (26316 / 34857) |
| = | 0.73335 | / | 0.75497 |
| | = | 0.9714 |
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 - (29074 + 6055) / 99823) | / | (1 - (26395 + 6592) / 98849) |
| = | 0.648087 | / | 0.666289 |
| | = | 0.9727 |
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 |
| = | 34857 | / | 31352 |
| | = | 1.1118 |
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)) |
| = | (3786 / (3786 + 6592)) | / | (3959 / (3959 + 6055)) |
| = | 0.36481 | / | 0.395347 |
| | = | 0.9228 |
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) |
| = | (14520 / 34857) | / | (15163 / 31352) |
| = | 0.416559 | / | 0.483637 |
| | = | 0.8613 |
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) |
| = | ((11071 + 26631) / 99823) | / | ((12316 + 25891) / 98849) |
| = | 0.377689 | / | 0.386519 |
| | = | 0.9772 |
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 |
| = | (4136 - -1049 | - | 10234) | / | 99823 |
| | = | -0.05058 |
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.
Salesforce has a M-score of -2.66 suggests that the company is unlikely to be a manipulator.
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