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ACN (Accenture) Beneish M-Score : -2.44 (As of Oct. 31, 2024)


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What is Accenture 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 -2.44 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ACN' s Beneish M-Score Range Over the Past 10 Years
Min: -2.97   Med: -2.63   Max: -2.44
Current: -2.44

During the past 13 years, the highest Beneish M-Score of Accenture was -2.44. The lowest was -2.97. And the median was -2.63.


Accenture Beneish M-Score Historical Data

The historical data trend for Accenture'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.

Accenture Beneish M-Score Chart

Accenture Annual Data
Trend Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23 Aug24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.97 -2.62 -2.48 -2.68 -2.44

Accenture Quarterly Data
Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23 May23 Aug23 Nov23 Feb24 May24 Aug24
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 -2.68 -2.68 -2.60 -2.54 -2.44

Competitive Comparison of Accenture's Beneish M-Score

For the Information Technology Services subindustry, Accenture'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.


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

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

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



Accenture 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 Accenture 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 * 1.1041+0.528 * 0.9916+0.404 * 1.1907+0.892 * 1.0122+0.115 * 1.0042
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0124+4.679 * -0.031403-0.327 * 0.964
=-2.44

* 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 (Aug24) TTM:Last Year (Aug23) TTM:
Total Receivables was $13,665 Mil.
Revenue was 16405.819 + 16466.828 + 15799.514 + 16224.303 = $64,896 Mil.
Gross Profit was 5337.456 + 5498.451 + 4878.469 + 5447.941 = $21,162 Mil.
Total Current Assets was $20,858 Mil.
Total Assets was $55,932 Mil.
Property, Plant and Equipment(Net PPE) was $4,279 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,430 Mil.
Selling, General, & Admin. Expense(SGA) was $11,128 Mil.
Total Current Liabilities was $18,976 Mil.
Long-Term Debt & Capital Lease Obligation was $2,448 Mil.
Net Income was 1684.301 + 1932.183 + 1674.859 + 1973.444 = $7,265 Mil.
Non Operating Income was -49.589 + -18.851 + -5.652 + -35.719 = $-110 Mil.
Cash Flow from Operations was 3389.431 + 3142.002 + 2101.043 + 498.551 = $9,131 Mil.
Total Receivables was $12,227 Mil.
Revenue was 15985.2 + 16564.585 + 15814.158 + 15747.802 = $64,112 Mil.
Gross Profit was 5181.629 + 5529.07 + 4834.766 + 5186.142 = $20,732 Mil.
Total Current Assets was $23,382 Mil.
Total Assets was $51,245 Mil.
Property, Plant and Equipment(Net PPE) was $4,167 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,401 Mil.
Selling, General, & Admin. Expense(SGA) was $10,859 Mil.
Total Current Liabilities was $18,009 Mil.
Long-Term Debt & Capital Lease Obligation was $2,354 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)
=(13664.847 / 64896.464) / (12227.186 / 64111.745)
=0.210564 / 0.190717
=1.1041

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)
=(20731.607 / 64111.745) / (21162.317 / 64896.464)
=0.323367 / 0.326094
=0.9916

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 - (20857.781 + 4278.515) / 55932.363) / (1 - (23381.931 + 4167.486) / 51245.305)
=0.550595 / 0.462401
=1.1907

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
=64896.464 / 64111.745
=1.0122

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))
=(1400.755 / (1400.755 + 4167.486)) / (1430.042 / (1430.042 + 4278.515))
=0.251561 / 0.250508
=1.0042

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)
=(11128.03 / 64896.464) / (10858.572 / 64111.745)
=0.171474 / 0.169369
=1.0124

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)
=((2448.118 + 18976.127) / 55932.363) / ((2353.807 + 18009.038) / 51245.305)
=0.383038 / 0.39736
=0.964

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
=(7264.787 - -109.811 - 9131.027) / 55932.363
=-0.031403

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.

Accenture has a M-score of -2.44 suggests that the company is unlikely to be a manipulator.


Accenture Beneish M-Score Related Terms

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Accenture Business Description

Address
1 Grand Canal Square, Grand Canal Harbour, Dublin, IRL, 2
Accenture is a leading global IT-services firm that provides consulting, strategy, and technology and operational services. These services run the gamut from aiding enterprises with digital transformation to procurement services to software system integration. The company provides its IT offerings to a variety of sectors, including communications, media and technology, financial services, health and public services, consumer products, and resources. Accenture employs just under 500,000 people throughout 200 cities in 51 countries.
Executives
Ellyn Shook officer: Chief Human Resources Officer C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Joel Unruch officer: General Counsel, Sec & CCO C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Kathleen R Mcclure officer: Chief Financial Officer C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Leonardo Framil officer: CEO-Growth Markets 500 W. MADISON STREET, CHICAGO IL 60661
Julie Spellman Sweet officer: General Counsel, Sec & CCO C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Jean-marc Ollagnier officer: Group Chief Exec-Resources C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Gilles Pelisson director 161 N. CLARK STREET, C/O ACCENTURE CORPORATE SECRETARY, CHICAGO IL 60601
Manish Sharma officer: Chief Operating Officer 161 NORTH CLARK, CHICAGO IL 60601
John F Walsh officer: Grp Chief Exec-Com, Med & Tech C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Melissa A Burgum officer: Chief Accounting Officer C/O SRA INTERNATIONAL, INC., 4300 FAIR LAKES COURT, FAIRFAX VA 22033
Jaime Ardila director 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Paula A Price director ONE CVS DRIVE, WOONSOCKET RI 02895
Alan C. Jope director 500 W. MADISON STREET, CHICAGO IL 60661
James O Etheredge officer: Group Chief Exec-North America C/O ACCENTURE, 161 N. CLARK STREET, CHICAGO IL 60601
Gianfranco Casati officer: Group Chief Executive?Products C/O ACCENTURE, 161 N. CLARK STREET, CHCIAGO IL 60601