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Informatica (Informatica) Beneish M-Score : -2.75 (As of Apr. 28, 2024)


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What is Informatica 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 -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

INFA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.75   Med: -2.73   Max: -2.26
Current: -2.75

During the past 6 years, the highest Beneish M-Score of Informatica was -2.26. The lowest was -2.75. And the median was -2.73.


Informatica Beneish M-Score Historical Data

The historical data trend for Informatica'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.

Informatica Beneish M-Score Chart

Informatica Annual Data
Trend Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial - - -2.26 -2.73 -2.75

Informatica Quarterly Data
Dec18 Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -2.73 -2.88 -3.03 -2.90 -2.75

Competitive Comparison of Informatica's Beneish M-Score

For the Software - Infrastructure subindustry, Informatica'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.


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

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

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



Informatica 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 Informatica 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 * 0.9949+0.528 * 0.9795+0.404 * 0.9266+0.892 * 1.0598+0.115 * 1.074
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9822+4.679 * -0.063984-0.327 * 0.9774
=-2.75

* 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 $580 Mil.
Revenue was 445.178 + 408.563 + 375.988 + 365.431 = $1,595 Mil.
Gross Profit was 358.213 + 324.722 + 290.396 + 283.534 = $1,257 Mil.
Total Current Assets was $1,753 Mil.
Total Assets was $5,202 Mil.
Property, Plant and Equipment(Net PPE) was $207 Mil.
Depreciation, Depletion and Amortization(DDA) was $167 Mil.
Selling, General, & Admin. Expense(SGA) was $691 Mil.
Total Current Liabilities was $1,053 Mil.
Long-Term Debt & Capital Lease Obligation was $1,852 Mil.
Net Income was 64.261 + 79.276 + -152.466 + -116.354 = $-125 Mil.
Non Operating Income was -39.329 + 5.112 + 2.06 + -26.623 = $-59 Mil.
Cash Flow from Operations was 101.042 + 58.718 + 36.705 + 69.882 = $266 Mil.
Total Receivables was $550 Mil.
Revenue was 398.781 + 371.951 + 372.039 + 362.347 = $1,505 Mil.
Gross Profit was 312.677 + 284.76 + 285.63 + 278.548 = $1,162 Mil.
Total Current Assets was $1,399 Mil.
Total Assets was $4,971 Mil.
Property, Plant and Equipment(Net PPE) was $228 Mil.
Depreciation, Depletion and Amortization(DDA) was $210 Mil.
Selling, General, & Admin. Expense(SGA) was $664 Mil.
Total Current Liabilities was $963 Mil.
Long-Term Debt & Capital Lease Obligation was $1,877 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)
=(579.932 / 1595.16) / (549.98 / 1505.118)
=0.363557 / 0.365407
=0.9949

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)
=(1161.615 / 1505.118) / (1256.865 / 1595.16)
=0.771777 / 0.787924
=0.9795

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 - (1752.586 + 207.065) / 5202.082) / (1 - (1398.753 + 228.309) / 4970.899)
=0.623295 / 0.672683
=0.9266

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
=1595.16 / 1505.118
=1.0598

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))
=(210.033 / (210.033 + 228.309)) / (166.793 / (166.793 + 207.065))
=0.479153 / 0.44614
=1.074

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)
=(690.961 / 1595.16) / (663.772 / 1505.118)
=0.433161 / 0.44101
=0.9822

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)
=((1851.963 + 1053.381) / 5202.082) / ((1876.938 + 963.456) / 4970.899)
=0.558496 / 0.571404
=0.9774

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
=(-125.283 - -58.78 - 266.347) / 5202.082
=-0.063984

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.

Informatica has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.


Informatica Beneish M-Score Related Terms

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Informatica (Informatica) Business Description

Traded in Other Exchanges
Address
2100 Seaport Boulevard, Redwood, CA, USA, 94063
Informatica Inc is a pioneered new category of software, the Intelligent Data Management Cloud, or IDMC. IDMC is an AI-powered platform that connects, manages, and unifies data across any multi-cloud, hybrid system, empowering enterprises to modernize and advance data strategies.
Executives
Ansa Sekharan officer: EVP & Chief Customer Officer 2100 SEAPORT BLVD., REDWOOD CITY CA 94063
John Arthur Schweitzer officer: EVP & Chief Revenue Officer 2100 SEAPORT BLVD., REDWOOD CITY CA 94063
Amit Walia director, officer: Chief Executive Officer 2100 SEAPORT BLVD., REDWOOD CITY CA 94063
Jitesh Ghai officer: EVP & Chief Product Officer 2100 SEAPORT BLVD., REDWOOD CITY CA 94063
Mark Pellowski officer: Chief Accounting Officer 2100 SEAPORT BLVD., REDWOOD CITY CA 94063
Michael I. Mclaughlin officer: EVP Global Finance & CFO 2100 SEAPORT BOULEVARD, REDWOOD CITY CA 94063
Eric F Brown officer: EVP & Chief Financial Officer C/O POLYCOM, INC., 4750 WILLOW ROAD, PLEASANTON CA 94588
Betsy Rafael director 550 MERIDIAN AVENUE, SAN JOSE CA 95126
Cesare Ruggiero director 2100 SEAPORT BOULEVARD, REDWOOD CITY CA 94063
Permira V G.p. L.p. director, 10 percent owner PERMIRA (GUERNSEY) LIMITED, PO BOX 503 TRAFALGAR COURT, LES BANQUES, ST. PETER PORT Y7 GY1 6DJ
Evomlux S.a R.l. director, 10 percent owner C/O PERMIRA ADVISERS LLC, 488, ROUTE DE LONGWY, LUXEMBOURG N4 L-1940
L.p. Ithaca director, 10 percent owner PO BOX 503, TRAFALGAR COURT, LES BANQUES, ST PETER PORT, CHANNEL ISLANDS Y7 GY1 6DJ
Ithaca G.p. Ltd director, 10 percent owner PO BOX 503, TRAFALGAR COURT, LES BANQUES, ST PETER PORT, CHANNEL ISLANDS Y7 GY1 6DJ
Ryan Lanpher director INFORMATICA INC., 2100 SEAPORT BLVD., REDWOOD CITY CA 94063
Austin Locke director 2100 SEAPORT BLVD., REDWOOD CITY CA 94063

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