GURUFOCUS.COM » STOCK LIST » USA » OTCPK » Capgemini SE (OTCPK:CGEMY) » Definitions » Beneish M-Score
Switch to:

Capgemini SE Beneish M-Score

: -2.60 (As of Today)
View and export this data going back to 2003. Start your Free Trial

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 -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CGEMY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.27   Med: -2.62   Max: 1.64
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Capgemini SE was 1.64. The lowest was -3.27. And the median was -2.62.


Capgemini SE Beneish M-Score Historical Data

The historical data trend for Capgemini SE'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.

Capgemini SE Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.63 -2.65 -2.71 -2.49 -2.60

Capgemini SE Semi-Annual Data
Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21
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 -2.71 - -2.49 - -2.60

Competitive Comparison

For the Information Technology Services subindustry, Capgemini SE'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.

   

Capgemini SE Beneish M-Score Distribution

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

* The bar in red indicates where Capgemini SE's Beneish M-Score falls into.



Capgemini SE 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 Capgemini SE 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 * 1.0094+0.528 * 0.989+0.404 * 0.9803+0.892 * 1.0643+0.115 * 0.9798
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9481+4.679 * -0.0593-0.327 * 0.9145
=-2.67

* 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 (Dec21) TTM:Last Year (Dec20) TTM:
Total Receivables was $3,513 Mil.
Revenue was $20,520 Mil.
Gross Profit was $5,415 Mil.
Total Current Assets was $10,168 Mil.
Total Assets was $27,156 Mil.
Property, Plant and Equipment(Net PPE) was $1,924 Mil.
Depreciation, Depletion and Amortization(DDA) was $759 Mil.
Selling, General, & Admin. Expense(SGA) was $2,771 Mil.
Total Current Liabilities was $7,364 Mil.
Long-Term Debt & Capital Lease Obligation was $8,227 Mil.
Net Income was $1,307 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $2,916 Mil.
Total Receivables was $3,270 Mil.
Revenue was $19,280 Mil.
Gross Profit was $5,032 Mil.
Total Current Assets was $9,536 Mil.
Total Assets was $26,708 Mil.
Property, Plant and Equipment(Net PPE) was $2,058 Mil.
Depreciation, Depletion and Amortization(DDA) was $790 Mil.
Selling, General, & Admin. Expense(SGA) was $2,746 Mil.
Total Current Liabilities was $7,269 Mil.
Long-Term Debt & Capital Lease Obligation was $9,499 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)
=(3512.9943502825 / 20519.774011299) / (3270.0729927007 / 19279.805352798)
=0.17120044 / 0.16961131
=1.0094

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)
=(5031.6301703163 / 19279.805352798) / (5414.6892655367 / 20519.774011299)
=0.2609793 / 0.26387665
=0.989

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 - (10168.361581921 + 1924.2937853107) / 27155.93220339) / (1 - (9536.496350365 + 2058.3941605839) / 26708.02919708)
=0.55469563 / 0.56586499
=0.9803

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
=20519.774011299 / 19279.805352798
=1.0643

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))
=(789.53771289538 / (789.53771289538 + 2058.3941605839)) / (759.32203389831 / (759.32203389831 + 1924.2937853107))
=0.27723195 / 0.28294737
=0.9798

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)
=(2770.6214689266 / 20519.774011299) / (2745.7420924574 / 19279.805352798)
=0.13502203 / 0.14241545
=0.9481

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)
=((8227.1186440678 + 7363.8418079096) / 27155.93220339) / ((9498.7834549878 + 7268.8564476886) / 26708.02919708)
=0.57412724 / 0.6278127
=0.9145

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
=(1307.3446327684 - 0 - 2916.384180791) / 27155.93220339
=-0.0593

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.

Capgemini SE has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.


Capgemini SE Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Capgemini SE's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Capgemini SE Business Description

Capgemini SE logo
Address
11 rue de Tilsitt, Paris, FRA, 75017
Capgemini is a French IT services company with a global presence. The firm has over 450 offices globally, with more than half of its employees based in India. Capgemini provides services related to IT consulting, infrastructure management, and business process outsourcing.

Capgemini SE Headlines

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)