Oracle (BUE:ORCL) Beneish M-Score : -2.48 (As of May. 05, 2024)

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What is Oracle 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 -2.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BUE:ORCL' s Beneish M-Score Range Over the Past 10 Years
Min: -2.89 Med: -2.57 Max: -2.02
Current: -2.48

During the past 13 years, the highest Beneish M-Score of Oracle was -2.02. The lowest was -2.89. And the median was -2.57.

Oracle Beneish M-Score Historical Data

The historical data trend for Oracle'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.

Oracle Beneish M-Score Chart

Oracle Annual Data

Trend

May14

May15

May16

May17

May18

May19

May20

May21

May22

May23

Beneish M-Score

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-2.55

-2.56

-2.53

-2.21

-2.46

Oracle Quarterly Data
	May19	Aug19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Beneish M-Score	Get a 7-Day Free Trial															-2.29	-2.46	-2.57	-2.53	-2.48

Competitive Comparison of Oracle's Beneish M-Score

For the Software - Infrastructure subindustry, Oracle'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.

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

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

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

Oracle 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 Oracle for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9969

0.528 * 1.0373

0.404 * 0.9634

0.892 * 2.2019

0.115 * 0.9728

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8267

4.679 * -0.033915

0.327 * 0.9433

-1.52

This Year (Feb24) TTM:

Last Year (Feb23) TTM:

Total Receivables was ARS2,553,950 Mil.
Revenue was 4647999.93 + 4529349.932 + 3437028.005 + 3077264.836 = ARS15,691,643 Mil.
Gross Profit was 3293849.951 + 3220349.952 + 2440668.004 + 2247675.515 = ARS11,202,543 Mil.
Total Current Assets was ARS7,372,050 Mil.
Total Assets was ARS47,978,699 Mil.
Property, Plant and Equipment(Net PPE) was ARS6,690,950 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS1,848,342 Mil.
Selling, General, & Admin. Expense(SGA) was ARS2,976,154 Mil.
Total Current Liabilities was ARS8,709,750 Mil.
Long-Term Debt & Capital Lease Obligation was ARS28,864,500 Mil.
Net Income was 840349.987 + 876049.987 + 667920.001 + 738178.808 = ARS3,122,499 Mil.
Non Operating Income was -127749.998 + -96949.999 + -92184 + -80512.422 = ARS-397,396 Mil.
Cash Flow from Operations was 1916249.971 + 50049.999 + 1924824.003 + 1255949.301 = ARS5,147,073 Mil.

Total Receivables was ARS1,163,571 Mil.
Revenue was 2321897.424 + 1929875.509 + 1509481.045 + 1365270.374 = ARS7,126,524 Mil.
Gross Profit was 1677841.508 + 1401930.747 + 1108931.116 + 1088872.31 = ARS5,277,576 Mil.
Total Current Assets was ARS3,501,387 Mil.
Total Assets was ARS24,649,793 Mil.
Property, Plant and Equipment(Net PPE) was ARS3,061,092 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS816,471 Mil.
Selling, General, & Admin. Expense(SGA) was ARS1,634,908 Mil.
Total Current Liabilities was ARS4,284,966 Mil.
Long-Term Debt & Capital Lease Obligation was ARS16,180,243 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)
	=	(2553949.962 / 15691642.703)	/	(1163570.632 / 7126524.352)
	=	0.162759	/	0.163273
	=	0.9969

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)
	=	(5277575.681 / 7126524.352)	/	(11202543.422 / 15691642.703)
	=	0.740554	/	0.713918
	=	1.0373

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 - (7372049.889 + 6690949.9) / 47978699.28)	/	(1 - (3501386.855 + 3061091.578) / 24649793.425)
	=	0.706891	/	0.733771
	=	0.9634

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
	=	15691642.703	/	7126524.352
	=	2.2019

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))
	=	(816471.146 / (816471.146 + 3061091.578))	/	(1848342.254 / (1848342.254 + 6690949.9))
	=	0.210563	/	0.216451
	=	0.9728

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)
	=	(2976154.48 / 15691642.703)	/	(1634908.34 / 7126524.352)
	=	0.189665	/	0.229412
	=	0.8267

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)
	=	((28864499.567 + 8709749.869) / 47978699.28)	/	((16180242.765 + 4284966.37) / 24649793.425)
	=	0.783144	/	0.830239
	=	0.9433

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
	=	(3122498.783 - -397396.419	-	5147073.274)	/	47978699.28
	=	-0.033915

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.

Oracle has a M-score of -1.52 signals that the company is likely to be a manipulator.

Oracle Beneish M-Score Related Terms

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Oracle (BUE:ORCL) Business Description

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Oracle provides database technology and enterprise resource planning, or ERP, software to enterprises around the world. Founded in 1977, Oracle pioneered the first commercial SQL-based relational database management system. Today, Oracle has 430,000 customers in 175 countries, supported by its base of 136,000 employees.