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Zoom Video Communications Beneish M-Score

: 0.00 (As of Today)
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The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Zoom Video Communications has a M-score of -1.80 signals that the company is a manipulator.

During the past 4 years, the highest Beneish M-Score of Zoom Video Communications was 0.00. The lowest was -2.22. And the median was -2.22.


Zoom Video Communications Beneish M-Score Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

* Premium members only.

Zoom Video Communications Annual Data
Jan17 Jan18 Jan19 Jan20
Beneish M-Score 0.00 0.00 0.00 -2.22

Zoom Video Communications Quarterly Data
Jan17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.00 0.00 0.00 -2.22 0.00

Competitive Comparison
* 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.


Zoom Video Communications Beneish M-Score Distribution

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



Zoom Video Communications 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 Zoom Video Communications 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 * 1.5456+0.528 * 1.0629+0.404 * 1.8273+0.892 * 2.112+0.115 * 0.7172
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9145+4.679 * -0.1649-0.327 * 2.2035
=-1.80

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Apr20) TTM:Last Year (Apr19) TTM:
Accounts Receivable was $257.5 Mil.
Revenue was 328.167 + 188.251 + 166.593 + 145.826 = $828.8 Mil.
Gross Profit was 224.46 + 155.704 + 135.748 + 117.926 = $633.8 Mil.
Total Current Assets was $1,783.0 Mil.
Total Assets was $2,067.7 Mil.
Property, Plant and Equipment(Net PPE) was $125.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.5 Mil.
Selling, General, & Admin. Expense(SGA) was $519.6 Mil.
Total Current Liabilities was $1,033.7 Mil.
Long-Term Debt & Capital Lease Obligation was $63.0 Mil.
Net Income was 27.075 + 15.339 + 2.211 + 5.541 = $50.2 Mil.
Non Operating Income was 0 + 0 + 0.978 + 1.628 = $2.6 Mil.
Cash Flow from Operations was 258.965 + 36.554 + 61.93 + 31.172 = $388.6 Mil.
Accounts Receivable was $78.9 Mil.
Revenue was 121.988 + 105.8 + 90.121 + 74.526 = $392.4 Mil.
Gross Profit was 97.884 + 86.275 + 73.278 + 61.553 = $319.0 Mil.
Total Current Assets was $866.3 Mil.
Total Assets was $999.1 Mil.
Property, Plant and Equipment(Net PPE) was $90.7 Mil.
(DDA) was $9.2 Mil.
Selling, General, & Admin. Expense(SGA) was $269.0 Mil.
Total Current Liabilities was $194.4 Mil.
Long-Term Debt & Capital Lease Obligation was $46.1 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(257.512 / 828.837) / (78.888 / 392.435)
=0.31069076 / 0.20102183
=1.5456

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)
=(318.99 / 392.435) / (633.838 / 828.837)
=0.81284799 / 0.76473179
=1.0629

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 - (1782.957 + 125.795) / 2067.709) / (1 - (866.34 + 90.681) / 999.052)
=0.0768759 / 0.04207088
=1.8273

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
=828.837 / 392.435
=2.112

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))
=(9.165 / (9.165 + 90.681)) / (18.464 / (18.464 + 125.795))
=0.09179136 / 0.12799201
=0.7172

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)
=(519.629 / 828.837) / (269.049 / 392.435)
=0.6269375 / 0.6855887
=0.9145

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)
=((62.989 + 1033.728) / 2067.709) / ((46.056 + 194.425) / 999.052)
=0.53040201 / 0.24070919
=2.2035

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
=(50.166 - 2.606 - 388.621) / 2067.709
=-0.1649

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Zoom Video Communications has a M-score of -1.80 signals that the company is likely to be a manipulator.


Zoom Video Communications Beneish M-Score Headlines

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