Rackspace Technology Beneish M-Score Historical Data
The historical data trend for Rackspace Technology'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.
Rackspace Technology Beneish M-Score Chart
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Rackspace Technology Annual Data
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Trend |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
-2.28 |
-2.64 |
-2.67 |
-3.65 |
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Rackspace Technology Quarterly Data
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Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
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Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
Jun24 |
Sep24 |
| Beneish M-Score |
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-3.49 |
-3.65 |
-3.77 |
-3.64 |
-3.12 |
Competitive Comparison of Rackspace Technology's Beneish M-Score
For the Software - Infrastructure subindustry, Rackspace Technology'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.
Rackspace Technology's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, Rackspace Technology's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Rackspace Technology's Beneish M-Score falls into.
Rackspace Technology 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 Rackspace Technology 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 * 0.9759 | + | 0.528 * 1.112 | + | 0.404 * 0.8796 | + | 0.892 * 0.9163 | + | 0.115 * 1.1329 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9578 | + | 4.679 * -0.105696 | - | 0.327 * 1.2644 |
| = | -3.12 |
* 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 (Sep24) TTM: | Last Year (Sep23) TTM: |
Total Receivables was $312 Mil.
Revenue was 675.8 + 684.9 + 690.8 + 719.7 = $2,771 Mil.
Gross Profit was 137.5 + 131.4 + 132.8 + 154.1 = $556 Mil.
Total Current Assets was $649 Mil.
Total Assets was $3,146 Mil.
Property, Plant and Equipment(Net PPE) was $756 Mil.
Depreciation, Depletion and Amortization(DDA) was $376 Mil.
Selling, General, & Admin. Expense(SGA) was $713 Mil.
Total Current Liabilities was $769 Mil.
Long-Term Debt & Capital Lease Obligation was $3,163 Mil.
Net Income was -186.6 + 25 + -640.6 + 28 = $-774 Mil.
Non Operating Income was -124.6 + 67.3 + -542 + 99.8 = $-500 Mil.
Cash Flow from Operations was 51.8 + 24.1 + -90.3 + 72.2 = $58 Mil.
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Total Receivables was $349 Mil.
Revenue was 732.4 + 746.3 + 758.7 + 787 = $3,024 Mil.
Gross Profit was 152 + 153.1 + 169.6 + 199.8 = $675 Mil.
Total Current Assets was $845 Mil.
Total Assets was $4,280 Mil.
Property, Plant and Equipment(Net PPE) was $742 Mil.
Depreciation, Depletion and Amortization(DDA) was $448 Mil.
Selling, General, & Admin. Expense(SGA) was $812 Mil.
Total Current Liabilities was $825 Mil.
Long-Term Debt & Capital Lease Obligation was $3,407 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) |
| = | (311.8 / 2771.2) | / | (348.7 / 3024.4) |
| = | 0.112514 | / | 0.115296 |
| | = | 0.9759 |
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) |
| = | (674.5 / 3024.4) | / | (555.8 / 2771.2) |
| = | 0.223019 | / | 0.200563 |
| | = | 1.112 |
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 - (648.7 + 755.7) / 3145.8) | / | (1 - (845.1 + 741.6) / 4280.3) |
| = | 0.553563 | / | 0.629302 |
| | = | 0.8796 |
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 |
| = | 2771.2 | / | 3024.4 |
| | = | 0.9163 |
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)) |
| = | (447.5 / (447.5 + 741.6)) | / | (375.9 / (375.9 + 755.7)) |
| = | 0.376335 | / | 0.332185 |
| | = | 1.1329 |
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) |
| = | (712.6 / 2771.2) | / | (812 / 3024.4) |
| = | 0.257145 | / | 0.268483 |
| | = | 0.9578 |
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) |
| = | ((3163 + 768.9) / 3145.8) | / | ((3406.5 + 824.8) / 4280.3) |
| = | 1.249889 | / | 0.988552 |
| | = | 1.2644 |
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 |
| = | (-774.2 - -499.5 | - | 57.8) | / | 3145.8 |
| | = | -0.105696 |
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.
Rackspace Technology has a M-score of -3.12 suggests that the company is unlikely to be a manipulator.
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