Broadcom Beneish M-Score Historical Data
The historical data trend for Broadcom'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.
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Broadcom Annual Data
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Trend |
Oct14 |
Oct15 |
Oct16 |
Oct17 |
Oct18 |
Oct19 |
Oct20 |
Oct21 |
Oct22 |
Oct23 |
| Beneish M-Score |
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-3.17 |
-3.37 |
-2.98 |
-2.49 |
-2.69 |
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Broadcom Quarterly Data
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Apr19 |
Jul19 |
Oct19 |
Jan20 |
Apr20 |
Jul20 |
Oct20 |
Jan21 |
Apr21 |
Jul21 |
Oct21 |
Jan22 |
Apr22 |
Jul22 |
Oct22 |
Jan23 |
Apr23 |
Jul23 |
Oct23 |
Jan24 |
| Beneish M-Score |
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|
|
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-2.56 |
-2.76 |
-2.70 |
-2.69 |
-2.21 |
Competitive Comparison
For the Semiconductors subindustry, Broadcom'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.
Broadcom Beneish M-Score Distribution
For the Semiconductors industry and Technology sector, Broadcom's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Broadcom's Beneish M-Score falls into.
Broadcom 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 Broadcom 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 * 1.3604 | + | 0.528 * 0.9989 | + | 0.404 * 1.1692 | + | 0.892 * 1.1294 | + | 0.115 * 1.0353 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.7696 | + | 4.679 * -0.035959 | - | 0.327 * 0.8434 |
| = | -2.21 |
* 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 $4,969 Mil.
Revenue was 11961 + 9295 + 8876 + 8733 = $38,865 Mil.
Gross Profit was 7375 + 6407 + 6164 + 6115 = $26,061 Mil.
Total Current Assets was $27,192 Mil.
Total Assets was $177,870 Mil.
Property, Plant and Equipment(Net PPE) was $2,662 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,148 Mil.
Selling, General, & Admin. Expense(SGA) was $2,816 Mil.
Total Current Liabilities was $20,369 Mil.
Long-Term Debt & Capital Lease Obligation was $73,468 Mil.
Net Income was 1325 + 3524 + 3303 + 3481 = $11,633 Mil.
Non Operating Income was -435 + -416 + -88 + 104 = $-835 Mil.
Cash Flow from Operations was 4815 + 4828 + 4719 + 4502 = $18,864 Mil.
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Total Receivables was $3,234 Mil.
Revenue was 8915 + 8930 + 8464 + 8103 = $34,412 Mil.
Gross Profit was 6004 + 5926 + 5681 + 5439 = $23,050 Mil.
Total Current Assets was $18,836 Mil.
Total Assets was $72,976 Mil.
Property, Plant and Equipment(Net PPE) was $2,201 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,729 Mil.
Selling, General, & Admin. Expense(SGA) was $1,409 Mil.
Total Current Liabilities was $7,483 Mil.
Long-Term Debt & Capital Lease Obligation was $38,167 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) |
| = | (4969 / 38865) | / | (3234 / 34412) |
| = | 0.127853 | / | 0.093979 |
| | = | 1.3604 |
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) |
| = | (23050 / 34412) | / | (26061 / 38865) |
| = | 0.669824 | / | 0.670552 |
| | = | 0.9989 |
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 - (27192 + 2662) / 177870) | / | (1 - (18836 + 2201) / 72976) |
| = | 0.832158 | / | 0.711727 |
| | = | 1.1692 |
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 |
| = | 38865 | / | 34412 |
| | = | 1.1294 |
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)) |
| = | (4729 / (4729 + 2201)) | / | (5148 / (5148 + 2662)) |
| = | 0.682395 | / | 0.659155 |
| | = | 1.0353 |
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) |
| = | (2816 / 38865) | / | (1409 / 34412) |
| = | 0.072456 | / | 0.040945 |
| | = | 1.7696 |
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) |
| = | ((73468 + 20369) / 177870) | / | ((38167 + 7483) / 72976) |
| = | 0.527559 | / | 0.625548 |
| | = | 0.8434 |
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 |
| = | (11633 - -835 | - | 18864) | / | 177870 |
| | = | -0.035959 |
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.
Broadcom has a M-score of -2.21 suggests that the company is unlikely to be a manipulator.
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