HP Beneish M-Score Historical Data
The historical data trend for HP'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.
HP Beneish M-Score Chart
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HP Annual Data
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| Beneish M-Score |
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-2.66 |
-2.71 |
-2.67 |
-2.53 |
-2.34 |
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HP Quarterly Data
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| Beneish M-Score |
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-2.51 |
-2.66 |
-2.34 |
-2.51 |
-2.57 |
Competitive Comparison of HP's Beneish M-Score
For the Computer Hardware subindustry, HP'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.
HP's Beneish M-Score Distribution in the Hardware Industry
For the Hardware industry and Technology sector, HP's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where HP's Beneish M-Score falls into.
HP 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 HP 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 * 0.9391 | + | 0.528 * 1.0452 | + | 0.404 * 0.9896 | + | 0.892 * 1.0245 | + | 0.115 * 1.0506 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0258 | + | 4.679 * -0.014897 | - | 0.327 * 1.0111 |
| = | -2.57 |
* 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 (Apr25) TTM: | Last Year (Apr24) TTM: |
Total Receivables was $6,713 Mil.
Revenue was 13220 + 13504 + 14055 + 13519 = $54,298 Mil.
Gross Profit was 2739 + 2840 + 3001 + 2906 = $11,486 Mil.
Total Current Assets was $19,458 Mil.
Total Assets was $38,799 Mil.
Property, Plant and Equipment(Net PPE) was $4,055 Mil.
Depreciation, Depletion and Amortization(DDA) was $818 Mil.
Selling, General, & Admin. Expense(SGA) was $5,752 Mil.
Total Current Liabilities was $26,556 Mil.
Long-Term Debt & Capital Lease Obligation was $10,057 Mil.
Net Income was 406 + 565 + 906 + 640 = $2,517 Mil.
Non Operating Income was -141 + -76 + -115 + -32 = $-364 Mil.
Cash Flow from Operations was 38 + 374 + 1623 + 1424 = $3,459 Mil.
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Total Receivables was $6,977 Mil.
Revenue was 12800 + 13185 + 13817 + 13196 = $52,998 Mil.
Gross Profit was 3023 + 2888 + 2985 + 2822 = $11,718 Mil.
Total Current Assets was $18,593 Mil.
Total Assets was $37,433 Mil.
Property, Plant and Equipment(Net PPE) was $3,937 Mil.
Depreciation, Depletion and Amortization(DDA) was $843 Mil.
Selling, General, & Admin. Expense(SGA) was $5,473 Mil.
Total Current Liabilities was $24,839 Mil.
Long-Term Debt & Capital Lease Obligation was $10,098 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) |
| = | (6713 / 54298) | / | (6977 / 52998) |
| = | 0.123633 | / | 0.131646 |
| | = | 0.9391 |
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) |
| = | (11718 / 52998) | / | (11486 / 54298) |
| = | 0.221103 | / | 0.211536 |
| | = | 1.0452 |
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 - (19458 + 4055) / 38799) | / | (1 - (18593 + 3937) / 37433) |
| = | 0.393979 | / | 0.398125 |
| | = | 0.9896 |
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 |
| = | 54298 | / | 52998 |
| | = | 1.0245 |
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)) |
| = | (843 / (843 + 3937)) | / | (818 / (818 + 4055)) |
| = | 0.17636 | / | 0.167864 |
| | = | 1.0506 |
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) |
| = | (5752 / 54298) | / | (5473 / 52998) |
| = | 0.105934 | / | 0.103268 |
| | = | 1.0258 |
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) |
| = | ((10057 + 26556) / 38799) | / | ((10098 + 24839) / 37433) |
| = | 0.943658 | / | 0.933321 |
| | = | 1.0111 |
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 |
| = | (2517 - -364 | - | 3459) | / | 38799 |
| | = | -0.014897 |
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.
HP has a M-score of -2.57 suggests that the company is unlikely to be a manipulator.
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