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Qualcomm (NAS:QCOM) Beneish M-Score

: -2.13 (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.

Good Sign:

Beneish M-Score -2.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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: -2.5   Max: 1.06
Current: -2.13

During the past 13 years, the highest Beneish M-Score of Qualcomm was 1.06. The lowest was -4.37. And the median was -2.50.


Qualcomm 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
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 -2.33 -2.02 -1.71 -1.45 -

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 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 in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



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 * 0.8239+0.528 * 1.0164+0.404 * 1.1352+0.892 * 1.1921+0.115 * 1.0166
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9111+4.679 * 0.044-0.327 * 0.8407
=-2.13

* 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 (Dec22) TTM:Last Year (Dec21) TTM:
Total Receivables was $3,960 Mil.
Revenue was 9463 + 11395 + 10936 + 11164 = $42,958 Mil.
Gross Profit was 5419 + 6527 + 6120 + 6516 = $24,582 Mil.
Total Current Assets was $21,098 Mil.
Total Assets was $50,014 Mil.
Property, Plant and Equipment(Net PPE) was $5,215 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,754 Mil.
Selling, General, & Admin. Expense(SGA) was $2,585 Mil.
Total Current Liabilities was $10,081 Mil.
Long-Term Debt & Capital Lease Obligation was $15,431 Mil.
Net Income was 2235 + 2873 + 3730 + 2934 = $11,772 Mil.
Non Operating Income was 21 + -1142 + 874 + -318 = $-565 Mil.
Cash Flow from Operations was 3095 + 1446 + 2895 + 2698 = $10,134 Mil.
Total Receivables was $4,032 Mil.
Revenue was 10705 + 9336 + 8060 + 7935 = $36,036 Mil.
Gross Profit was 6402 + 5399 + 4656 + 4503 = $20,960 Mil.
Total Current Assets was $20,222 Mil.
Total Assets was $42,820 Mil.
Property, Plant and Equipment(Net PPE) was $4,723 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,624 Mil.
Selling, General, & Admin. Expense(SGA) was $2,380 Mil.
Total Current Liabilities was $12,273 Mil.
Long-Term Debt & Capital Lease Obligation was $13,708 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)
=(3960 / 42958) / (4032 / 36036)
=0.09218306 / 0.11188811
=0.8239

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)
=(20960 / 36036) / (24582 / 42958)
=0.58164058 / 0.57223334
=1.0164

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 - (21098 + 5215) / 50014) / (1 - (20222 + 4723) / 42820)
=0.47388731 / 0.41744512
=1.1352

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
=42958 / 36036
=1.1921

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))
=(1624 / (1624 + 4723)) / (1754 / (1754 + 5215))
=0.25586891 / 0.25168604
=1.0166

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)
=(2585 / 42958) / (2380 / 36036)
=0.06017505 / 0.06604507
=0.9111

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)
=((15431 + 10081) / 50014) / ((13708 + 12273) / 42820)
=0.51009717 / 0.60674918
=0.8407

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
=(11772 - -565 - 10134) / 50014
=0.044

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 -2.13 suggests that the company is unlikely 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
Neil Martin officer: SVP, Finance and CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
James J Cathey officer: Chief Commercial Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Ann C Chaplin officer: General Counsel&Corp Secretary 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Sylvia Acevedo director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Gregory N Johnson director C/O INTUIT INC., 2700 COAST AVENUE, MOUNTAIN VIEW CA 94043
Jean-pascal Tricoire director 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Jamie S Miller director GENERAL ELECTRIC COMPANY, 5 NECCO STREET, BOSTON MA 02210
Heather S Ace officer: EVP, Human Resources 3721 VALLEY CENTRE DR SUITE 500, SAN DIEGO CA 92130
Akash J. Palkhiwala officer: SVP & Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
David Wise officer: Interim CFO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Erin L Polek officer: SVP Corporate Controller & CAO 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Martin B Anstice director 4650 CUSHING PARKWAY, FREMONT CA 94538
Irene B Rosenfeld director 999 VANDERBILT BEACH ROAD, SUITE 601, NAPLES FL 34108
Steven M Mollenkopf director, officer: Chief Executive Officer 5775 MOREHOUSE DRIVE, SAN DIEGO CA 92121
Neil Smit director C/O AMERICA ONLINE LATIN AMERICA, INC., 6600 N. ANDREWS AVE., SUITE 400, FT. LAUDERDALE FL 33309

Qualcomm (NAS:QCOM) Headlines

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