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TMSNY (Temenos AG) Beneish M-Score : -3.06 (As of Dec. 15, 2024)


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What is Temenos AG 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 -3.06 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TMSNY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.15   Med: -2.97   Max: -2.28
Current: -3.06

During the past 13 years, the highest Beneish M-Score of Temenos AG was -2.28. The lowest was -3.15. And the median was -2.97.


Temenos AG Beneish M-Score Historical Data

The historical data trend for Temenos AG'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.

Temenos AG Beneish M-Score Chart

Temenos AG Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.28 -3.10 -3.09 -2.92 -3.04

Temenos AG 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 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 -2.94 -3.04 -2.97 -3.01 -3.06

Competitive Comparison of Temenos AG's Beneish M-Score

For the Software - Application subindustry, Temenos AG'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.


Temenos AG's Beneish M-Score Distribution in the Software Industry

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

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



Temenos AG 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 Temenos AG 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 * 0.8565+0.528 * 0.964+0.404 * 1.0229+0.892 * 1.0438+0.115 * 0.9857
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0087+4.679 * -0.086173-0.327 * 1.0137
=-2.99

* 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 $316 Mil.
Revenue was 246.916 + 248.385 + 229.88 + 298.002 = $1,023 Mil.
Gross Profit was 143.546 + 204.467 + 134.765 + 256.703 = $739 Mil.
Total Current Assets was $423 Mil.
Total Assets was $2,288 Mil.
Property, Plant and Equipment(Net PPE) was $54 Mil.
Depreciation, Depletion and Amortization(DDA) was $132 Mil.
Selling, General, & Admin. Expense(SGA) was $323 Mil.
Total Current Liabilities was $712 Mil.
Long-Term Debt & Capital Lease Obligation was $882 Mil.
Net Income was 30.845 + 37.064 + 32.265 + 43.903 = $144 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 41.693 + 92.514 + 69.677 + 137.322 = $341 Mil.
Total Receivables was $354 Mil.
Revenue was 236.7 + 238.974 + 226.548 + 278.001 = $980 Mil.
Gross Profit was 128.638 + 195.63 + 128.118 + 230.563 = $683 Mil.
Total Current Assets was $441 Mil.
Total Assets was $2,202 Mil.
Property, Plant and Equipment(Net PPE) was $58 Mil.
Depreciation, Depletion and Amortization(DDA) was $135 Mil.
Selling, General, & Admin. Expense(SGA) was $307 Mil.
Total Current Liabilities was $1,062 Mil.
Long-Term Debt & Capital Lease Obligation was $452 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)
=(316.181 / 1023.183) / (353.658 / 980.223)
=0.309017 / 0.360793
=0.8565

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)
=(682.949 / 980.223) / (739.481 / 1023.183)
=0.696728 / 0.722726
=0.964

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 - (423.45 + 54.118) / 2287.59) / (1 - (440.67 + 58.107) / 2202.186)
=0.791235 / 0.773508
=1.0229

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
=1023.183 / 980.223
=1.0438

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))
=(135.183 / (135.183 + 58.107)) / (132.214 / (132.214 + 54.118))
=0.699379 / 0.709561
=0.9857

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)
=(323.461 / 1023.183) / (307.212 / 980.223)
=0.316132 / 0.31341
=1.0087

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)
=((881.671 + 712.154) / 2287.59) / ((451.642 + 1061.997) / 2202.186)
=0.696727 / 0.687335
=1.0137

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
=(144.077 - 0 - 341.206) / 2287.59
=-0.086173

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.

Temenos AG has a M-score of -2.99 suggests that the company is unlikely to be a manipulator.


Temenos AG Beneish M-Score Related Terms

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Temenos AG Business Description

Traded in Other Exchanges
Address
2 Rue de L’Ecole-de-Chimie, Geneva, CHE, 1205
Temenos AG is a Switzerland-based provider of software systems for banking and other financial services. Its digital banking offerings include corporate banking, investor servicing, retail banking, Islamic banking, Internet and mobile banking, and micro-banking capabilities. Its other offerings include financial crime analysis, payment processing, risk and compliance, portfolio and fund accounting, customer relationship management, data warehousing, and reporting. The firm has operations in the Americas, Europe, Middle East, Africa, and Asia-Pacific.

Temenos AG Headlines

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