ADT Beneish M-Score Historical Data
The historical data trend for ADT'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.
ADT Beneish M-Score Chart
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ADT Annual Data
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Trend |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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-2.92 |
-2.87 |
-2.39 |
-2.74 |
-2.72 |
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ADT 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 |
Mar24 |
| Beneish M-Score |
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-2.51 |
-2.59 |
-2.98 |
-2.72 |
-2.97 |
Competitive Comparison of ADT's Beneish M-Score
For the Security & Protection Services subindustry, ADT'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.
ADT's Beneish M-Score Distribution in the Business Services Industry
For the Business Services industry and Industrials sector, ADT's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where ADT's Beneish M-Score falls into.
ADT 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 ADT 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 * 0.6893 | + | 0.528 * 0.9662 | + | 0.404 * 1.0286 | + | 0.892 * 0.9257 | + | 0.115 * 1.1102 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9881 | + | 4.679 * -0.043519 | - | 0.327 * 0.8684 |
| = | -2.98 |
* 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 (Mar24) TTM: | Last Year (Mar23) TTM: |
Total Receivables was €356 Mil.
Revenue was 1112.566 + 1120.808 + 1159.523 + 1470.457 = €4,863 Mil.
Gross Profit was 895.605 + 910.751 + 937.622 + 1024.024 = €3,768 Mil.
Total Current Assets was €921 Mil.
Total Assets was €14,669 Mil.
Property, Plant and Equipment(Net PPE) was €3,011 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,238 Mil.
Selling, General, & Admin. Expense(SGA) was €1,494 Mil.
Total Current Liabilities was €1,296 Mil.
Long-Term Debt & Capital Lease Obligation was €6,962 Mil.
Net Income was 84.227 + 528.075 + -80.804 + 85.111 = €617 Mil.
Non Operating Income was -27.195 + -22.454 + -97.45 + -183.446 = €-331 Mil.
Cash Flow from Operations was 334.698 + 377.833 + 418.145 + 454.85 = €1,586 Mil.
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Total Receivables was €559 Mil.
Revenue was 1193.008 + 1243.556 + 1302.691 + 1514.574 = €5,254 Mil.
Gross Profit was 922.178 + 955.415 + 1021.249 + 1034.183 = €3,933 Mil.
Total Current Assets was €1,517 Mil.
Total Assets was €16,388 Mil.
Property, Plant and Equipment(Net PPE) was €3,208 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,535 Mil.
Selling, General, & Admin. Expense(SGA) was €1,633 Mil.
Total Current Liabilities was €1,867 Mil.
Long-Term Debt & Capital Lease Obligation was €8,757 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) |
| = | (356.498 / 4863.354) | / | (558.684 / 5253.829) |
| = | 0.073303 | / | 0.106338 |
| | = | 0.6893 |
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) |
| = | (3933.025 / 5253.829) | / | (3768.002 / 4863.354) |
| = | 0.748602 | / | 0.774774 |
| | = | 0.9662 |
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 - (920.914 + 3010.878) / 14668.648) | / | (1 - (1517.346 + 3208.398) / 16387.681) |
| = | 0.731959 | / | 0.711628 |
| | = | 1.0286 |
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 |
| = | 4863.354 | / | 5253.829 |
| | = | 0.9257 |
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)) |
| = | (1534.665 / (1534.665 + 3208.398)) | / | (1238.427 / (1238.427 + 3010.878)) |
| = | 0.32356 | / | 0.291442 |
| | = | 1.1102 |
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) |
| = | (1493.919 / 4863.354) | / | (1633.258 / 5253.829) |
| = | 0.307179 | / | 0.31087 |
| | = | 0.9881 |
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) |
| = | ((6961.528 + 1296.341) / 14668.648) | / | ((8756.781 + 1866.639) / 16387.681) |
| = | 0.56296 | / | 0.648256 |
| | = | 0.8684 |
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 |
| = | (616.609 - -330.545 | - | 1585.526) | / | 14668.648 |
| | = | -0.043519 |
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.
ADT has a M-score of -2.98 suggests that the company is unlikely to be a manipulator.
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