SolarWinds Beneish M-Score Historical Data
The historical data trend for SolarWinds'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.
SolarWinds Beneish M-Score Chart
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SolarWinds Annual Data
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Trend |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.40 |
-2.85 |
-2.63 |
-2.79 |
-2.74 |
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SolarWinds Quarterly Data
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Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.79 |
-2.67 |
-2.65 |
-2.70 |
-2.74 |
Competitive Comparison of SolarWinds's Beneish M-Score
For the Software - Infrastructure subindustry, SolarWinds'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.
SolarWinds's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, SolarWinds's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where SolarWinds's Beneish M-Score falls into.
SolarWinds 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 SolarWinds 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 * 0.9736 | + | 0.528 * 0.9788 | + | 0.404 * 0.9709 | + | 0.892 * 1.0547 | + | 0.115 * 0.9195 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.8684 | + | 4.679 * -0.059118 | - | 0.327 * 0.9849 |
| = | -2.74 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $103.9 Mil.
Revenue was 198.139 + 189.591 + 185.034 + 185.976 = $758.7 Mil.
Gross Profit was 176.291 + 168.222 + 163.076 + 164.146 = $671.7 Mil.
Total Current Assets was $421.3 Mil.
Total Assets was $3,250.9 Mil.
Property, Plant and Equipment(Net PPE) was $63.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $82.2 Mil.
Selling, General, & Admin. Expense(SGA) was $373.0 Mil.
Total Current Liabilities was $468.8 Mil.
Long-Term Debt & Capital Lease Obligation was $1,240.8 Mil.
Net Income was -0.576 + -3.172 + 0.26 + -5.621 = $-9.1 Mil.
Non Operating Income was -0.189 + -0.121 + 0.013 + -0.089 = $-0.4 Mil.
Cash Flow from Operations was 65.276 + 68.422 + 48.968 + 0.799 = $183.5 Mil.
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Total Receivables was $101.2 Mil.
Revenue was 187.069 + 179.396 + 176.034 + 176.868 = $719.4 Mil.
Gross Profit was 165.443 + 159.205 + 156.926 + 141.81 = $623.4 Mil.
Total Current Assets was $307.4 Mil.
Total Assets was $3,200.0 Mil.
Property, Plant and Equipment(Net PPE) was $88.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $95.0 Mil.
Selling, General, & Admin. Expense(SGA) was $407.2 Mil.
Total Current Liabilities was $456.6 Mil.
Long-Term Debt & Capital Lease Obligation was $1,252.0 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) |
| = | (103.914 / 758.74) | / | (101.191 / 719.367) |
| = | 0.136956 | / | 0.140667 |
| | = | 0.9736 |
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) |
| = | (623.384 / 719.367) | / | (671.735 / 758.74) |
| = | 0.866573 | / | 0.88533 |
| | = | 0.9788 |
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 - (421.327 + 63.445) / 3250.915) | / | (1 - (307.393 + 88.052) / 3200.006) |
| = | 0.850881 | / | 0.876424 |
| | = | 0.9709 |
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 |
| = | 758.74 | / | 719.367 |
| | = | 1.0547 |
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)) |
| = | (94.981 / (94.981 + 88.052)) | / | (82.198 / (82.198 + 63.445)) |
| = | 0.518928 | / | 0.56438 |
| | = | 0.9195 |
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) |
| = | (372.981 / 758.74) | / | (407.207 / 719.367) |
| = | 0.491579 | / | 0.566063 |
| | = | 0.8684 |
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) |
| = | ((1240.782 + 468.808) / 3250.915) | / | ((1252 + 456.633) / 3200.006) |
| = | 0.52588 | / | 0.533947 |
| | = | 0.9849 |
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 |
| = | (-9.109 - -0.386 | - | 183.465) | / | 3250.915 |
| | = | -0.059118 |
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.
SolarWinds has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.
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