ServiceNow Beneish M-Score Historical Data
The historical data trend for ServiceNow'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.
|
ServiceNow Annual Data
|
|
Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
|
|
|
|
|
|
-2.44 |
-3.19 |
-2.94 |
-3.09 |
-2.65 |
|
ServiceNow Quarterly Data
|
|
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-3.09 |
-2.95 |
-2.58 |
-2.48 |
-2.65 |
Competitive Comparison
For the Software - Application subindustry, ServiceNow'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.
ServiceNow Beneish M-Score Distribution
For the Software industry and Technology sector, ServiceNow's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where ServiceNow's Beneish M-Score falls into.
ServiceNow 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 ServiceNow 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 * 0.9532 | + | 0.528 * 0.9962 | + | 0.404 * 1.1741 | + | 0.892 * 1.2382 | + | 0.115 * 0.9364 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9475 | + | 4.679 * -0.094036 | - | 0.327 * 0.8982 |
| = | -2.65 |
* 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 $2,036 Mil.
Revenue was 2437 + 2288 + 2150 + 2096 = $8,971 Mil.
Gross Profit was 1921 + 1792 + 1679 + 1658 = $7,050 Mil.
Total Current Assets was $7,777 Mil.
Total Assets was $17,387 Mil.
Property, Plant and Equipment(Net PPE) was $2,073 Mil.
Depreciation, Depletion and Amortization(DDA) was $562 Mil.
Selling, General, & Admin. Expense(SGA) was $4,164 Mil.
Total Current Liabilities was $7,365 Mil.
Long-Term Debt & Capital Lease Obligation was $2,195 Mil.
Net Income was 295 + 242 + 1044 + 150 = $1,731 Mil.
Non Operating Income was -3 + -8 + -11 + -10 = $-32 Mil.
Cash Flow from Operations was 1605 + 311 + 580 + 902 = $3,398 Mil.
|
Total Receivables was $1,725 Mil.
Revenue was 1940 + 1831 + 1752 + 1722 = $7,245 Mil.
Gross Profit was 1525 + 1431 + 1363 + 1353 = $5,672 Mil.
Total Current Assets was $6,654 Mil.
Total Assets was $13,299 Mil.
Property, Plant and Equipment(Net PPE) was $1,735 Mil.
Depreciation, Depletion and Amortization(DDA) was $433 Mil.
Selling, General, & Admin. Expense(SGA) was $3,549 Mil.
Total Current Liabilities was $6,005 Mil.
Long-Term Debt & Capital Lease Obligation was $2,136 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) |
| = | (2036 / 8971) | / | (1725 / 7245) |
| = | 0.226954 | / | 0.238095 |
| | = | 0.9532 |
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) |
| = | (5672 / 7245) | / | (7050 / 8971) |
| = | 0.782885 | / | 0.785866 |
| | = | 0.9962 |
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 - (7777 + 2073) / 17387) | / | (1 - (6654 + 1735) / 13299) |
| = | 0.433485 | / | 0.369201 |
| | = | 1.1741 |
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 |
| = | 8971 | / | 7245 |
| | = | 1.2382 |
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)) |
| = | (433 / (433 + 1735)) | / | (562 / (562 + 2073)) |
| = | 0.199723 | / | 0.213283 |
| | = | 0.9364 |
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) |
| = | (4164 / 8971) | / | (3549 / 7245) |
| = | 0.464162 | / | 0.489855 |
| | = | 0.9475 |
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) |
| = | ((2195 + 7365) / 17387) | / | ((2136 + 6005) / 13299) |
| = | 0.549836 | / | 0.612151 |
| | = | 0.8982 |
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 |
| = | (1731 - -32 | - | 3398) | / | 17387 |
| | = | -0.094036 |
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.
ServiceNow has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
NOW has been successfully added to your