HP Beneish M-Score Historical Data
The historical data trend for HP'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.
HP Beneish M-Score Chart
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HP Annual Data
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Oct14 |
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Oct19 |
Oct20 |
Oct21 |
Oct22 |
Oct23 |
| Beneish M-Score |
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-2.61 |
-2.66 |
-2.71 |
-2.67 |
-2.52 |
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HP Quarterly Data
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Apr19 |
Jul19 |
Oct19 |
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Jan24 |
| Beneish M-Score |
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-2.53 |
-2.50 |
-2.48 |
-2.52 |
-2.55 |
Competitive Comparison of HP's Beneish M-Score
For the Computer Hardware subindustry, HP'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.
HP's Beneish M-Score Distribution in the Hardware Industry
For the Hardware industry and Technology sector, HP's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where HP's Beneish M-Score falls into.
HP 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 HP 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 * 1.0966 | + | 0.528 * 0.8936 | + | 0.404 * 1.0206 | + | 0.892 * 0.8508 | + | 0.115 * 0.9676 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1888 | + | 4.679 * 0.00789 | - | 0.327 * 0.944 |
| = | -2.55 |
* 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 (Jan24) TTM: | Last Year (Jan23) TTM: |
Total Receivables was €5,634 Mil.
Revenue was 12103.83 + 13084.699 + 11929.184 + 11776.656 = €48,894 Mil.
Gross Profit was 2651.184 + 2826.795 + 2551.088 + 2671.248 = €10,700 Mil.
Total Current Assets was €15,476 Mil.
Total Assets was €32,907 Mil.
Property, Plant and Equipment(Net PPE) was €3,646 Mil.
Depreciation, Depletion and Amortization(DDA) was €778 Mil.
Selling, General, & Admin. Expense(SGA) was €4,977 Mil.
Total Current Liabilities was €21,901 Mil.
Long-Term Debt & Capital Lease Obligation was €9,286 Mil.
Net Income was 570.996 + 922.378 + 692.464 + 972.192 = €3,158 Mil.
Non Operating Income was -106.488 + -178.983 + -4.52 + -255.36 = €-545 Mil.
Cash Flow from Operations was 111.078 + 1870.325 + 882.304 + 580.032 = €3,444 Mil.
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Total Receivables was €6,038 Mil.
Revenue was 12804.544 + 14995.61 + 14398.984 + 15269.74 = €57,469 Mil.
Gross Profit was 2586.336 + 2731.365 + 2834.972 + 3086.358 = €11,239 Mil.
Total Current Assets was €16,059 Mil.
Total Assets was €33,545 Mil.
Property, Plant and Equipment(Net PPE) was €3,718 Mil.
Depreciation, Depletion and Amortization(DDA) was €763 Mil.
Selling, General, & Admin. Expense(SGA) was €4,921 Mil.
Total Current Liabilities was €23,249 Mil.
Long-Term Debt & Capital Lease Obligation was €10,431 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) |
| = | (5633.766 / 48894.369) | / | (6038.496 / 57468.878) |
| = | 0.115223 | / | 0.105074 |
| | = | 1.0966 |
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) |
| = | (11239.031 / 57468.878) | / | (10700.315 / 48894.369) |
| = | 0.195567 | / | 0.218846 |
| | = | 0.8936 |
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 - (15475.644 + 3646.296) / 32906.628) | / | (1 - (16059.04 + 3717.568) / 33545.344) |
| = | 0.418903 | / | 0.410451 |
| | = | 1.0206 |
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 |
| = | 48894.369 | / | 57468.878 |
| | = | 0.8508 |
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)) |
| = | (762.728 / (762.728 + 3717.568)) | / | (778.466 / (778.466 + 3646.296)) |
| = | 0.170241 | / | 0.175934 |
| | = | 0.9676 |
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) |
| = | (4977.3 / 48894.369) | / | (4921.236 / 57468.878) |
| = | 0.101797 | / | 0.085633 |
| | = | 1.1888 |
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) |
| = | ((9286.488 + 21900.726) / 32906.628) | / | ((10430.72 + 23249.184) / 33545.344) |
| = | 0.947749 | / | 1.004011 |
| | = | 0.944 |
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 |
| = | (3158.03 - -545.351 | - | 3443.739) | / | 32906.628 |
| | = | 0.00789 |
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.
HP has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.
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