WalkMe (WalkMe) Beneish M-Score : -3.29 (As of May. 15, 2024)

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What is WalkMe 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 -3.29 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WKME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.29 Med: -2.91 Max: -2.39
Current: -3.29

During the past 5 years, the highest Beneish M-Score of WalkMe was -2.39. The lowest was -3.29. And the median was -2.91.

WalkMe Beneish M-Score Historical Data

The historical data trend for WalkMe'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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WalkMe Beneish M-Score Chart

WalkMe Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.91

-2.39

-3.29

WalkMe Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial												-2.39	-2.54	-2.51	-2.55	-3.29

Competitive Comparison of WalkMe's Beneish M-Score

For the Software - Application subindustry, WalkMe'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.

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

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

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

WalkMe 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 WalkMe 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 * 0.8254

0.528 * 0.9356

0.404 * 1.0098

0.892 * 1.0896

0.115 * 1.3737

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.883

4.679 * -0.163891

0.327 * 0.9742

-3.29

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $40.5 Mil.
Revenue was 67.889 + 67.015 + 66.158 + 65.892 = $267.0 Mil.
Gross Profit was 57.904 + 56.674 + 54.303 + 53.7 = $222.6 Mil.
Total Current Assets was $341.6 Mil.
Total Assets was $454.1 Mil.
Property, Plant and Equipment(Net PPE) was $24.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.2 Mil.
Selling, General, & Admin. Expense(SGA) was $232.4 Mil.
Total Current Liabilities was $162.0 Mil.
Long-Term Debt & Capital Lease Obligation was $8.2 Mil.
Net Income was -10.647 + -8.762 + -13.604 + -26.123 = $-59.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 9.156 + 7.422 + 6.234 + -7.532 = $15.3 Mil.

Total Receivables was $45.0 Mil.
Revenue was 64.863 + 63.353 + 59.942 + 56.848 = $245.0 Mil.
Gross Profit was 52.414 + 49.776 + 45.852 + 43.08 = $191.1 Mil.
Total Current Assets was $339.1 Mil.
Total Assets was $445.2 Mil.
Property, Plant and Equipment(Net PPE) was $20.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $7.9 Mil.
Selling, General, & Admin. Expense(SGA) was $241.5 Mil.
Total Current Liabilities was $167.5 Mil.
Long-Term Debt & Capital Lease Obligation was $3.8 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)
	=	(40.494 / 266.954)	/	(45.024 / 245.006)
	=	0.151689	/	0.183767
	=	0.8254

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)
	=	(191.122 / 245.006)	/	(222.581 / 266.954)
	=	0.780071	/	0.83378
	=	0.9356

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 - (341.566 + 24.064) / 454.057)	/	(1 - (339.077 + 20.271) / 445.206)
	=	0.194749	/	0.19285
	=	1.0098

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
	=	266.954	/	245.006
	=	1.0896

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))
	=	(7.878 / (7.878 + 20.271))	/	(6.157 / (6.157 + 24.064))
	=	0.279868	/	0.203733
	=	1.3737

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)
	=	(232.355 / 266.954)	/	(241.495 / 245.006)
	=	0.870393	/	0.98567
	=	0.883

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)
	=	((8.222 + 161.981) / 454.057)	/	((3.833 + 167.468) / 445.206)
	=	0.374849	/	0.384768
	=	0.9742

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
	=	(-59.136 - 0	-	15.28)	/	454.057
	=	-0.163891

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.

WalkMe has a M-score of -3.29 suggests that the company is unlikely to be a manipulator.

WalkMe Beneish M-Score Related Terms

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WalkMe (WalkMe) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Software » WalkMe Ltd (NAS:WKME) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1 Walter Moses Street, Tel Aviv, ISR, 6789903

Website

https://www.walkme.com

WalkMe Ltd is the defining solution enabling organizations to realize the value of software investments. It is a cloud-based digital adoption platform, users employees and customers of organizations can navigate websites, SaaS applications, and mobile apps through a digital, GPS-like experience to accomplish any task from simple, online transactions, to complex cross-application software processes, to fully autonomous experiences that require no manual clicks or entries. Substantial revenue is derived from the United States.