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Wix.com (NAS:WIX) Beneish M-Score

: -3.52 (As of Today)
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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 -3.52 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WIX' s Beneish M-Score Range Over the Past 10 Years
Min: -4.21   Med: -2.77   Max: -1.49
Current: -3.52

During the past 13 years, the highest Beneish M-Score of Wix.com was -1.49. The lowest was -4.21. And the median was -2.77.


Wix.com Beneish M-Score Historical Data

The historical data trend for Wix.com'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.

Wix.com Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.10 -2.68 -2.75 -3.31 -3.52

Wix.com Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -3.31 -3.62 -3.93 -4.16 -3.52

Competitive Comparison

For the Software - Infrastructure subindustry, Wix.com'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.

   

Wix.com Beneish M-Score Distribution

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

* The bar in red indicates where Wix.com's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



Wix.com 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 Wix.com 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 * 1.2681+0.528 * 0.991+0.404 * 0.6808+0.892 * 1.0929+0.115 * 1.6103
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8911+4.679 * -0.263334-0.327 * 1.2708
=-3.52

* 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 (Dec22) TTM:Last Year (Dec21) TTM:
Total Receivables was $42 Mil.
Revenue was 355.04 + 345.805 + 345.224 + 341.597 = $1,388 Mil.
Gross Profit was 226.276 + 217.948 + 210.367 + 206.848 = $861 Mil.
Total Current Assets was $1,148 Mil.
Total Assets was $1,758 Mil.
Property, Plant and Equipment(Net PPE) was $309 Mil.
Depreciation, Depletion and Amortization(DDA) was $23 Mil.
Selling, General, & Admin. Expense(SGA) was $664 Mil.
Total Current Liabilities was $1,190 Mil.
Long-Term Debt & Capital Lease Obligation was $740 Mil.
Net Income was -38.975 + -47.361 + -111.238 + -227.289 = $-425 Mil.
Non Operating Income was 0.788 + 0.131 + 0.058 + 0.046 = $1 Mil.
Cash Flow from Operations was 53.234 + 0.267 + -2.687 + -13.662 = $37 Mil.
Total Receivables was $30 Mil.
Revenue was 333.413 + 319.89 + 315.575 + 300.779 = $1,270 Mil.
Gross Profit was 201.521 + 197.914 + 194.663 + 186.98 = $781 Mil.
Total Current Assets was $1,390 Mil.
Total Assets was $2,060 Mil.
Property, Plant and Equipment(Net PPE) was $152 Mil.
Depreciation, Depletion and Amortization(DDA) was $19 Mil.
Selling, General, & Admin. Expense(SGA) was $682 Mil.
Total Current Liabilities was $774 Mil.
Long-Term Debt & Capital Lease Obligation was $1,005 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)
=(42.086 / 1387.666) / (30.367 / 1269.657)
=0.030329 / 0.023917
=1.2681

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)
=(781.078 / 1269.657) / (861.439 / 1387.666)
=0.615188 / 0.620783
=0.991

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 - (1147.737 + 309.346) / 1758.367) / (1 - (1389.813 + 151.532) / 2059.787)
=0.171343 / 0.251697
=0.6808

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
=1387.666 / 1269.657
=1.0929

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))
=(18.881 / (18.881 + 151.532)) / (22.857 / (22.857 + 309.346))
=0.110796 / 0.068804
=1.6103

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)
=(663.931 / 1387.666) / (681.675 / 1269.657)
=0.478452 / 0.536897
=0.8911

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)
=((739.548 + 1190.472) / 1758.367) / ((1004.738 + 774.298) / 2059.787)
=1.097621 / 0.863699
=1.2708

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
=(-424.863 - 1.023 - 37.152) / 1758.367
=-0.263334

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.

Wix.com has a M-score of -3.52 suggests that the company is unlikely to be a manipulator.


Wix.com Beneish M-Score Related Terms

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Wix.com (NAS:WIX) Business Description

Wix.com logo
Traded in Other Exchanges
Address
40 Namal Tel Aviv Street, Tel Aviv, ISR, 6350671
Wix.com Ltd is a cloud-based development platform provider for millions of registered users worldwide. The company is engaged in web development and management that provides an easy-to-use powerful cloud-based platform of products through a freemium model. Its core products consist of three web editors: the Wix Editor, intended for users with basic technological skills, Wix ADI, intended for novice users and Corvid, intended for more tech-savvy users. The company's web development technology is built based on HTML5 and offers HTML5 compatible capabilities, web design and layout tools, domain hosting, and other marketing and workflow management applications and services. The geographic segments include North America, Europe, Latin America, Asia and others.

Wix.com (NAS:WIX) Headlines