CDW (STU:CDW) Beneish M-Score : -2.52 (As of Dec. 14, 2024)

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What is CDW Beneish M-Score?

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 -2.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

STU:CDW' s Beneish M-Score Range Over the Past 10 Years
Min: -2.81 Med: -2.51 Max: -1.85
Current: -2.52

During the past 13 years, the highest Beneish M-Score of CDW was -1.85. The lowest was -2.81. And the median was -2.51.

CDW Beneish M-Score Historical Data

The historical data trend for CDW'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.

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CDW Beneish M-Score Chart

CDW Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.49

-2.81

-1.85

-2.65

-2.68

CDW Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.64	-2.68	-2.70	-2.62	-2.52

Competitive Comparison of CDW's Beneish M-Score

For the Information Technology Services subindustry, CDW'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.

CDW's Beneish M-Score Distribution in the Software Industry

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

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

CDW 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 CDW for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1314

0.528 * 0.9722

0.404 * 0.9403

0.892 * 0.9375

0.115 * 0.9824

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0243

4.679 * -0.02517

0.327 * 0.9472

-2.56

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €4,878 Mil.
Revenue was 4970.457 + 5038.339 + 4482.884 + 4601.964 = €19,094 Mil.
Gross Profit was 1081.831 + 1099.1 + 978.236 + 1058.035 = €4,217 Mil.
Total Current Assets was €6,903 Mil.
Total Assets was €12,953 Mil.
Property, Plant and Equipment(Net PPE) was €290 Mil.
Depreciation, Depletion and Amortization(DDA) was €251 Mil.
Selling, General, & Admin. Expense(SGA) was €2,680 Mil.
Total Current Liabilities was €4,918 Mil.
Long-Term Debt & Capital Lease Obligation was €5,195 Mil.
Net Income was 285.076 + 261.142 + 198.812 + 271.524 = €1,017 Mil.
Non Operating Income was 0.36 + -1.022 + -0.092 + -0.917 = €-2 Mil.
Cash Flow from Operations was 308.232 + 139.257 + 404.8 + 491.97 = €1,344 Mil.

Total Receivables was €4,599 Mil.
Revenue was 5273.717 + 5192.89 + 4766.295 + 5133.755 = €20,367 Mil.
Gross Profit was 1150.355 + 1090.525 + 1017.5 + 1114.958 = €4,373 Mil.
Total Current Assets was €6,052 Mil.
Total Assets was €12,064 Mil.
Property, Plant and Equipment(Net PPE) was €307 Mil.
Depreciation, Depletion and Amortization(DDA) was €257 Mil.
Selling, General, & Admin. Expense(SGA) was €2,791 Mil.
Total Current Liabilities was €4,481 Mil.
Long-Term Debt & Capital Lease Obligation was €5,463 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)
	=	(4878.104 / 19093.644)	/	(4598.983 / 20366.657)
	=	0.255483	/	0.225809
	=	1.1314

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)
	=	(4373.338 / 20366.657)	/	(4217.202 / 19093.644)
	=	0.21473	/	0.220869
	=	0.9722

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 - (6903.102 + 290.392) / 12953.407)	/	(1 - (6051.521 + 307.336) / 12064.156)
	=	0.444664	/	0.472913
	=	0.9403

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
	=	19093.644	/	20366.657
	=	0.9375

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))
	=	(257.142 / (257.142 + 307.336))	/	(251.096 / (251.096 + 290.392))
	=	0.455539	/	0.463715
	=	0.9824

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)
	=	(2680.275 / 19093.644)	/	(2791.175 / 20366.657)
	=	0.140375	/	0.137046
	=	1.0243

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)
	=	((5195.346 + 4918.199) / 12953.407)	/	((5462.991 + 4480.828) / 12064.156)
	=	0.780763	/	0.824245
	=	0.9472

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
	=	(1016.554 - -1.671	-	1344.259)	/	12953.407
	=	-0.02517

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.

CDW has a M-score of -2.56 suggests that the company is unlikely to be a manipulator.

CDW Beneish M-Score Related Terms

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CDW Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » CDW Corp (STU:CDW) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CDW:USA CDW:Mexico CDW:Germany C1DW34:Brazil

Address

200 North Milwaukee Avenue, Vernon Hills, IL, USA, 60061

Website

https://www.cdw.com

CDW Corp is a multi-brand provider of information technology ("IT") solutions to small, medium, and large business, government, education, and healthcare customers in the United States, the United Kingdom, and Canada. The company's broad array of offerings ranges from discrete hardware and software products to integrated IT solutions and services that include on-premise and cloud capabilities across hybrid infrastructure, digital experience, and security. The company has three operating segments namely, Corporate, Small Business, and Public. The Corporate segment generates the majority of its revenue and primarily serves US private sector business customers with more than 250 employees.