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.
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HP Annual Data
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Trend |
Oct14 |
Oct15 |
Oct16 |
Oct17 |
Oct18 |
Oct19 |
Oct20 |
Oct21 |
Oct22 |
Oct23 |
| Beneish M-Score |
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-2.61 |
-2.66 |
-2.71 |
-2.67 |
-2.52 |
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HP 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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-2.53 |
-2.50 |
-2.48 |
-2.52 |
-2.55 |
Competitive Comparison
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 Beneish M-Score Distribution
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 * 1.0603 | + | 0.528 * 0.8949 | + | 0.404 * 1.0206 | + | 0.892 * 0.8895 | + | 0.115 * 0.9401 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1861 | + | 4.679 * 0.008648 | - | 0.327 * 0.944 |
| = | -2.55 |
* 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 $6,137 Mil.
Revenue was 13185 + 13817 + 13196 + 12913 = $53,111 Mil.
Gross Profit was 2888 + 2985 + 2822 + 2929 = $11,624 Mil.
Total Current Assets was $16,858 Mil.
Total Assets was $35,846 Mil.
Property, Plant and Equipment(Net PPE) was $3,972 Mil.
Depreciation, Depletion and Amortization(DDA) was $846 Mil.
Selling, General, & Admin. Expense(SGA) was $5,409 Mil.
Total Current Liabilities was $23,857 Mil.
Long-Term Debt & Capital Lease Obligation was $10,116 Mil.
Net Income was 622 + 974 + 766 + 1066 = $3,428 Mil.
Non Operating Income was -116 + -189 + -5 + -280 = $-590 Mil.
Cash Flow from Operations was 121 + 1975 + 976 + 636 = $3,708 Mil.
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Total Receivables was $6,507 Mil.
Revenue was 13798 + 14774 + 14648 + 16490 = $59,710 Mil.
Gross Profit was 2787 + 2691 + 2884 + 3333 = $11,695 Mil.
Total Current Assets was $17,305 Mil.
Total Assets was $36,148 Mil.
Property, Plant and Equipment(Net PPE) was $4,006 Mil.
Depreciation, Depletion and Amortization(DDA) was $792 Mil.
Selling, General, & Admin. Expense(SGA) was $5,127 Mil.
Total Current Liabilities was $25,053 Mil.
Long-Term Debt & Capital Lease Obligation was $11,240 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) |
| = | (6137 / 53111) | / | (6507 / 59710) |
| = | 0.11555 | / | 0.108977 |
| | = | 1.0603 |
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) |
| = | (11695 / 59710) | / | (11624 / 53111) |
| = | 0.195863 | / | 0.218862 |
| | = | 0.8949 |
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 - (16858 + 3972) / 35846) | / | (1 - (17305 + 4006) / 36148) |
| = | 0.418903 | / | 0.410451 |
| | = | 1.0206 |
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 |
| = | 53111 | / | 59710 |
| | = | 0.8895 |
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)) |
| = | (792 / (792 + 4006)) | / | (846 / (846 + 3972)) |
| = | 0.165069 | / | 0.175592 |
| | = | 0.9401 |
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) |
| = | (5409 / 53111) | / | (5127 / 59710) |
| = | 0.101843 | / | 0.085865 |
| | = | 1.1861 |
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) |
| = | ((10116 + 23857) / 35846) | / | ((11240 + 25053) / 36148) |
| = | 0.947749 | / | 1.004011 |
| | = | 0.944 |
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 |
| = | (3428 - -590 | - | 3708) | / | 35846 |
| | = | 0.008648 |
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 -2.55 suggests that the company is unlikely to be a manipulator.
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