Affirm Holdings Beneish M-Score Historical Data
The historical data trend for Affirm Holdings'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.
Affirm Holdings Beneish M-Score Chart
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Affirm Holdings Annual Data
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Trend |
Jun19 |
Jun20 |
Jun21 |
Jun22 |
Jun23 |
| Beneish M-Score |
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- |
- |
5.04 |
-2.87 |
-2.55 |
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Affirm Holdings Quarterly Data
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Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
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-2.70 |
-2.66 |
-2.55 |
-2.64 |
-2.80 |
Competitive Comparison of Affirm Holdings's Beneish M-Score
For the Software - Infrastructure subindustry, Affirm Holdings'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.
Affirm Holdings's Beneish M-Score Distribution in the Software Industry
For the Software industry and Technology sector, Affirm Holdings's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Affirm Holdings's Beneish M-Score falls into.
Affirm Holdings 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 Affirm Holdings 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 * 1.1049 | + | 0.528 * 0.8924 | + | 0.404 * 0.8035 | + | 0.892 * 1.2935 | + | 0.115 * 0.7092 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.6762 | + | 4.679 * -0.116801 | - | 0.327 * 1.0494 |
| = | -2.80 |
* 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 $5,284 Mil.
Revenue was 591.11 + 496.547 + 445.825 + 380.978 = $1,914 Mil.
Gross Profit was 381.074 + 287.911 + 222.26 + 153.957 = $1,045 Mil.
Total Current Assets was $7,749 Mil.
Total Assets was $9,065 Mil.
Property, Plant and Equipment(Net PPE) was $395 Mil.
Depreciation, Depletion and Amortization(DDA) was $157 Mil.
Selling, General, & Admin. Expense(SGA) was $1,134 Mil.
Total Current Liabilities was $159 Mil.
Long-Term Debt & Capital Lease Obligation was $6,243 Mil.
Net Income was -166.902 + -171.783 + -205.962 + -205.677 = $-750 Mil.
Non Operating Income was 4.493 + 37.042 + 35.614 + 68.588 = $146 Mil.
Cash Flow from Operations was 74.321 + 98.902 + 43.789 + -54.275 = $163 Mil.
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Total Receivables was $3,697 Mil.
Revenue was 399.558 + 361.624 + 364.134 + 354.762 = $1,480 Mil.
Gross Profit was 176.303 + 162.304 + 181.391 + 201.1 = $721 Mil.
Total Current Assets was $6,525 Mil.
Total Assets was $7,805 Mil.
Property, Plant and Equipment(Net PPE) was $293 Mil.
Depreciation, Depletion and Amortization(DDA) was $74 Mil.
Selling, General, & Admin. Expense(SGA) was $1,297 Mil.
Total Current Liabilities was $162 Mil.
Long-Term Debt & Capital Lease Obligation was $5,091 Mil.
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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) |
| = | (5283.923 / 1914.46) | / | (3697.109 / 1480.078) |
| = | 2.760007 | / | 2.497915 |
| | = | 1.1049 |
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) |
| = | (721.098 / 1480.078) | / | (1045.202 / 1914.46) |
| = | 0.487203 | / | 0.545951 |
| | = | 0.8924 |
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 - (7749.201 + 394.903) / 9064.989) | / | (1 - (6525.469 + 292.553) / 7804.751) |
| = | 0.101587 | / | 0.126427 |
| | = | 0.8035 |
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 |
| = | 1914.46 | / | 1480.078 |
| | = | 1.2935 |
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)) |
| = | (74.103 / (74.103 + 292.553)) | / | (157.391 / (157.391 + 394.903)) |
| = | 0.202105 | / | 0.284977 |
| | = | 0.7092 |
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) |
| = | (1134.102 / 1914.46) | / | (1296.722 / 1480.078) |
| = | 0.592387 | / | 0.876117 |
| | = | 0.6762 |
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) |
| = | ((6243.372 + 158.695) / 9064.989) | / | ((5090.531 + 162.184) / 7804.751) |
| = | 0.706241 | / | 0.673015 |
| | = | 1.0494 |
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 |
| = | (-750.324 - 145.737 | - | 162.737) | / | 9064.989 |
| | = | -0.116801 |
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.
Affirm Holdings has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.
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