Squarespace Beneish M-Score Historical Data
The historical data trend for Squarespace'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.
Squarespace Beneish M-Score Chart
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Squarespace Annual Data
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Trend |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
-3.65 |
-3.37 |
-2.97 |
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Squarespace Quarterly Data
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Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
Jun24 |
| Beneish M-Score |
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-3.74 |
-2.89 |
-2.97 |
-2.06 |
-1.32 |
Competitive Comparison of Squarespace's Beneish M-Score
For the Software - Infrastructure subindustry, Squarespace'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.
Squarespace's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, Squarespace's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Squarespace's Beneish M-Score falls into.
Squarespace 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 Squarespace 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 * 3.2818 | + | 0.528 * 1.1085 | + | 0.404 * 1.3165 | + | 0.892 * 1.1876 | + | 0.115 * 0.4847 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.947 | + | 4.679 * -0.276181 | - | 0.327 * 0.8416 |
| = | -1.32 |
* 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 (Jun24) TTM: | Last Year (Jun23) TTM: |
Total Receivables was $50 Mil.
Revenue was 296.769 + 281.148 + 270.718 + 257.061 = $1,106 Mil.
Gross Profit was 213.83 + 200.374 + 201.068 + 205.308 = $821 Mil.
Total Current Assets was $447 Mil.
Total Assets was $1,001 Mil.
Property, Plant and Equipment(Net PPE) was $111 Mil.
Depreciation, Depletion and Amortization(DDA) was $66 Mil.
Selling, General, & Admin. Expense(SGA) was $514 Mil.
Total Current Liabilities was $587 Mil.
Long-Term Debt & Capital Lease Obligation was $560 Mil.
Net Income was 6.133 + 0.144 + 5.256 + -16.499 = $-5 Mil.
Non Operating Income was 4.454 + 4.577 + -4.163 + 6.327 = $11 Mil.
Cash Flow from Operations was 60.629 + 85.219 + 61.09 + 53.325 = $260 Mil.
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Total Receivables was $13 Mil.
Revenue was 247.529 + 237.028 + 228.812 + 217.696 = $931 Mil.
Gross Profit was 204.362 + 194.078 + 188.706 + 178.789 = $766 Mil.
Total Current Assets was $372 Mil.
Total Assets was $766 Mil.
Property, Plant and Equipment(Net PPE) was $136 Mil.
Depreciation, Depletion and Amortization(DDA) was $30 Mil.
Selling, General, & Admin. Expense(SGA) was $457 Mil.
Total Current Liabilities was $486 Mil.
Long-Term Debt & Capital Lease Obligation was $557 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) |
| = | (49.801 / 1105.696) | / | (12.778 / 931.065) |
| = | 0.04504 | / | 0.013724 |
| | = | 3.2818 |
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) |
| = | (765.935 / 931.065) | / | (820.58 / 1105.696) |
| = | 0.822644 | / | 0.742139 |
| | = | 1.1085 |
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 - (446.804 + 110.625) / 1000.879) | / | (1 - (372.359 + 136.121) / 766.412) |
| = | 0.443061 | / | 0.336545 |
| | = | 1.3165 |
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 |
| = | 1105.696 | / | 931.065 |
| | = | 1.1876 |
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)) |
| = | (30.225 / (30.225 + 136.121)) | / | (66.335 / (66.335 + 110.625)) |
| = | 0.1817 | / | 0.374859 |
| | = | 0.4847 |
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) |
| = | (514.117 / 1105.696) | / | (457.145 / 931.065) |
| = | 0.464971 | / | 0.490991 |
| | = | 0.947 |
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) |
| = | ((559.689 + 587.21) / 1000.879) | / | ((557.25 + 486.241) / 766.412) |
| = | 1.145892 | / | 1.361527 |
| | = | 0.8416 |
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 |
| = | (-4.966 - 11.195 | - | 260.263) | / | 1000.879 |
| | = | -0.276181 |
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.
Squarespace has a M-score of -1.32 signals that the company is likely to be a manipulator.
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