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Qualcomm (NAS:QCOM) Beneish M-Score

: -1.45 (As of Today)
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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.

Warning Sign:

Beneish M-Score -1.45 higher than -1.78, which implies that the company might have manipulated its financial results.

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

QCOM' s Beneish M-Score Range Over the Past 10 Years
Min: -4.37   Med: -2.35   Max: 1.06
Current: -1.45

During the past 13 years, the highest Beneish M-Score of Qualcomm was 1.06. The lowest was -4.37. And the median was -2.35.


Qualcomm (NAS:QCOM) Beneish M-Score Historical Data

The historical data trend for Qualcomm'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.

Qualcomm Annual Data
Trend Sep13 Sep14 Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.06 -2.97 -1.92 -2.60 -1.45

Qualcomm Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
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 -2.60 -2.33 -2.02 -1.71 -1.45

Qualcomm (NAS:QCOM) Beneish M-Score Competitive Comparison

For the Semiconductors subindustry, Qualcomm'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.

   

Qualcomm (NAS:QCOM) Beneish M-Score Distribution

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

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



Qualcomm 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 Qualcomm 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 * 1.1974+0.528 * 0.9943+0.404 * 1.1715+0.892 * 1.3168+0.115 * 1.0132
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8344+4.679 * 0.0878-0.327 * 0.8332
=-1.45

* 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 (Sep22) TTM:Last Year (Sep21) TTM:
Total Receivables was $5,643 Mil.
Revenue was 11395 + 10936 + 11164 + 10705 = $44,200 Mil.
Gross Profit was 6527 + 6120 + 6516 + 6402 = $25,565 Mil.
Total Current Assets was $20,724 Mil.
Total Assets was $49,014 Mil.
Property, Plant and Equipment(Net PPE) was $5,168 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,762 Mil.
Selling, General, & Admin. Expense(SGA) was $2,570 Mil.
Total Current Liabilities was $11,866 Mil.
Long-Term Debt & Capital Lease Obligation was $13,537 Mil.
Net Income was 2873 + 3730 + 2934 + 3399 = $12,936 Mil.
Non Operating Income was -1142 + 874 + -318 + 123 = $-463 Mil.
Cash Flow from Operations was 1446 + 2895 + 2698 + 2057 = $9,096 Mil.
Total Receivables was $3,579 Mil.
Revenue was 9336 + 8060 + 7935 + 8235 = $33,566 Mil.
Gross Profit was 5399 + 4656 + 4503 + 4746 = $19,304 Mil.
Total Current Assets was $20,075 Mil.
Total Assets was $41,240 Mil.
Property, Plant and Equipment(Net PPE) was $4,559 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,582 Mil.
Selling, General, & Admin. Expense(SGA) was $2,339 Mil.
Total Current Liabilities was $11,951 Mil.
Long-Term Debt & Capital Lease Obligation was $13,701 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)
=(5643 / 44200) / (3579 / 33566)
=0.12766968 / 0.10662575
=1.1974

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)
=(19304 / 33566) / (25565 / 44200)
=0.57510576 / 0.57839367
=0.9943

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 - (20724 + 5168) / 49014) / (1 - (20075 + 4559) / 41240)
=0.47174277 / 0.40266731
=1.1715

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
=44200 / 33566
=1.3168

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))
=(1582 / (1582 + 4559)) / (1762 / (1762 + 5168))
=0.25761277 / 0.25425685
=1.0132

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)
=(2570 / 44200) / (2339 / 33566)
=0.0581448 / 0.06968361
=0.8344

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)
=((13537 + 11866) / 49014) / ((13701 + 11951) / 41240)
=0.51828049 / 0.62201746
=0.8332

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
=(12936 - -463 - 9096) / 49014
=0.0878

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.

Qualcomm has a M-score of -1.45 signals that the company is likely to be a manipulator.


Qualcomm Beneish M-Score Related Terms

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


Qualcomm (NAS:QCOM) Business Description

Qualcomm logo
Address
5775 Morehouse Drive, San Diego, CA, USA, 92121-1714
Qualcomm develops and licenses wireless technology and designs chips for smartphones. The company's key patents revolve around CDMA and OFDMA technologies, which are standards in wireless communications that are the backbone of all 3G and 4G networks. The firm is a leader in 5G network technology as well. Qualcomm's IP is licensed by virtually all wireless device makers. The firm is also the world's largest wireless chip vendor, supplying nearly every premier handset maker with leading-edge processors. Qualcomm also sells RF-front end modules into smartphones and chips into automotive and Internet of Things markets.
Executives
Cathey James J officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Chaplin Ann C officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Acevedo Sylvia director 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Johnson Gregory N director C/O INTUIT INC. 2700 COAST AVENUE MOUNTAIN VIEW CA 94043
Tricoire Jean-pascal director 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Miller Jamie S director GENERAL ELECTRIC COMPANY 5 NECCO STREET BOSTON MA 02210
Ace Heather S officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500 SAN DIEGO CA 92130
Palkhiwala Akash J. officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Wise David officer: Interim CFO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Polek Erin L officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Anstice Martin B director 4650 CUSHING PARKWAY FREMONT CA 94538
Rosenfeld Irene B director 999 VANDERBILT BEACH ROAD SUITE 601 NAPLES FL 34108
Mollenkopf Steven M director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE SAN DIEGO CA 92121
Smit Neil director C/O AMERICA ONLINE LATIN AMERICA, INC. 6600 N. ANDREWS AVE., SUITE 400 FT. LAUDERDALE FL 33309
Fields Mark director FORD MOTOR COMPANY ONE AMERICAN ROAD DEARBORN MI 48126

Qualcomm (NAS:QCOM) Headlines

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