ON24 Beneish M-Score

ON24 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 ON24 for today is based on a combination of the following eight different indices:

* 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.

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.

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.

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.

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.

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.

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.

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

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

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.

ON24 has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.

ON24 Beneish M-Score Related Terms

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ON24 Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » ON24 Inc (NYSE:ONTF) » Definitions » Beneish M-Score

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Traded in Other Exchanges

N/A

Address

50 Beale Street, 8th Floor, San Francisco, CA, USA, 94105

Website

https://www.on24.com

ON24 Inc provides a cloud-based digital experience platform that enables businesses to convert customer engagement into revenue through interactive webinar experiences, virtual event experiences, and multimedia content experiences. The company derives revenue from subscription agreements with customers for accessing the platform and related services. Geographically, it derives a majority of revenue from the United States.

Executives

Arora Anil	director	C/O YODLEE, INC., 3600 BRIDGE PARKWAY 2ND FLOOR REDWOOD CITY CA 94065
Zingale Anthony	director	C/O SERVICEMAX, INC. 4450 ROSEWOOD DR., #200 PLEASANTON CA 94588
Presidio Management Group Vii L L C	10 percent owner	2735 SAND HILL ROAD MENLO PARK CA 94025
Federman Irwin	director, 10 percent owner	2735 SAND HILL ROAD MENLO PARK CA 94025
Tansey Casey M	10 percent owner	2735 SAND HILL ROAD MENLO PARK CA 94025
Usvp Entrepreneur Partners Vii B L P	10 percent owner	2735 SAND HILL ROAD MENLO PARK CA 94025
Usvp Entrepreneur Partners Vii A L P	10 percent owner	2735 SAND HILL ROAD MENLO PARK CA 94025
2180 Associates Fund Vii L P	10 percent owner	2735 SAND HILL ROAD MENLO PARK CA 94025
Us Venture Partners Vii L P	10 percent owner	2735 SAND HILL ROAD MENLO PARK CA 94025
Goldman Sachs Group Inc	10 percent owner	200 WEST STREET NEW YORK NY 10282
Gssg Holdings Llc	10 percent owner	200 WEST STREET NEW YORK NY 10282
Special Situations Investing Group Ii, Llc	10 percent owner	200 WEST STREET NEW YORK NY 10282
Goldman Sachs & Co. Llc	10 percent owner	200 WEST STREET NEW YORK NY 10282
Rho Ventures Iii Holdings Llc	10 percent owner	152 W. 57TH STREET 23RD FLOOR NEW YORK NY 10019
Canaan Equity Aggregator Llc	10 percent owner	1624 MARKET STREET, SUITE 226 PMB 29471 DENVER CO 80202