Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Autodesk Inc. (NASDAQ:ADSK)

Financial Reporting Quality: Aggregate Accruals

Advanced level

Earnings can be decomposed into cash and accrual components. The accrual component (aggregate accruals) has been found to have less persistence than the cash component, and therefore (1) earnings with higher accrual component are less persistent than earnings with smaller accrual component, all else equal; and (2) the cash component of earnings should receive a higher weighting evaluating company performance.


Balance-Sheet-Based Accruals Ratio

Autodesk Inc., balance sheet computation of aggregate accruals

US$ in thousands

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Operating Assets
Total assets 7,279,800  6,179,300  4,729,200  4,113,600  4,798,100  5,515,300 
Less: Cash and cash equivalents 1,772,200  1,774,700  886,000  1,078,000  1,213,100  1,353,000 
Less: Marketable securities 85,000  69,000  67,600  245,200  686,800  897,900 
Operating assets 5,422,600  4,335,600  3,775,600  2,790,400  2,898,200  3,264,400 
Operating Liabilities
Total liabilities 6,314,300  6,318,400  4,940,100  4,369,600  4,064,500  3,895,700 
Less: Current portion of long-term notes payable, net —  449,700  —  —  398,700  — 
Less: Long-term notes payable, net, excluding current portion 1,637,200  1,635,100  2,087,700  1,586,000  1,092,000  1,487,700 
Operating liabilities 4,677,100  4,233,600  2,852,400  2,783,600  2,573,800  2,408,000 
 
Net operating assets1 745,500  102,000  923,200  6,800  324,400  856,400 
Balance-sheet-based aggregate accruals2 643,500  (821,200) 916,400  (317,600) (532,000) — 
Financial Ratio
Balance-sheet-based accruals ratio3 151.86% -160.20% 197.08% -191.79% -90.11%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Accenture PLC 3.73% 42.14% 1.41% 51.55% 35.46%
Adobe Inc. 8.20% 2.25% 77.63% -0.97% -7.49%
Automatic Data Processing Inc. 2.72% 53.63% 2.87% -3.05% 3.70%
International Business Machines Corp. -9.64% 38.84% -2.32% -0.63%
Intuit Inc. -1.39% 29.27% 1.03% -1.49% -4.87%
Mastercard Inc. 25.41% 91.82% 13.74% 45.38%
Microsoft Corp. 10.29% 47.05% -1.64% 69.19% -40.94%
Oracle Corp. 1.35% 2.79% -15.16% 25.88% -3.24%
PayPal Holdings Inc.
salesforce.com inc. 11.80% 65.85% 74.65% -10.22% 38.26%
ServiceNow Inc. 19.95% 121.81% 234.32%
Visa Inc. 2.71% 1.03% 1.56% -6.20%
Balance-Sheet-Based Accruals Ratio, Sector
Software & Services 0.00% 4.01% 30.42% -4.04% 14.23%
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology 0.00% 1.33% 5.70% -3.46% 13.09%

Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-25), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-21), 10-K (filing date: 2016-03-23).

1 2021 Calculation
Net operating assets = Operating assets – Operating liabilities
= 5,422,6004,677,100 = 745,500

2 2021 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2021 – Net operating assets2020
= 745,500102,000 = 643,500

3 2021 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × 643,500 ÷ [(745,500 + 102,000) ÷ 2] = 151.86%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Autodesk Inc. improved earnings quality from 2020 to 2021.

Cash-Flow-Statement-Based Accruals Ratio

Autodesk Inc., cash flow statement computation of aggregate accruals

US$ in thousands

Microsoft Excel LibreOffice Calc
Jan 31, 2021 Jan 31, 2020 Jan 31, 2019 Jan 31, 2018 Jan 31, 2017 Jan 31, 2016
Net income (loss) 1,208,200  214,500  (80,800) (566,900) (582,100) (330,500)
Less: Net cash provided by operating activities 1,437,200  1,415,100  377,100  900  169,700  414,000 
Less: Net cash (used in) provided by investing activities (403,900) (57,300) (710,400) 506,400  272,000  (809,500)
Cash-flow-statement-based aggregate accruals 174,900  (1,143,300) 252,500  (1,074,200) (1,023,800) 65,000 
Financial Ratio
Cash-flow-statement-based accruals ratio1 41.27% -223.04% 54.30% -648.67% -173.41%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Accenture PLC -13.65% -1.28% -12.70% 15.84% 5.24%
Adobe Inc. -0.48% -9.78% 43.94% -17.08% -1.50%
Automatic Data Processing Inc. -64.26% 40.06% 49.61% -188.48% 269.27%
International Business Machines Corp. -13.41% 34.45% -3.14% -7.47%
Intuit Inc. -34.22% -15.95% -34.47% -50.61% -71.57%
Mastercard Inc. 19.04% 47.01% 8.38% 10.80%
Microsoft Corp. -9.72% 8.59% -83.67% 149.68% 47.44%
Oracle Corp. -31.35% -74.80% -13.86% 40.94% 1.37%
PayPal Holdings Inc.
salesforce.com inc. 10.66% -5.69% 28.72% -8.64% 11.45%
ServiceNow Inc. -12.82% 16.38% -387.26%
Visa Inc. -2.71% -0.31% 1.88% -8.84%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Software & Services 0.00% -8.54% 1.70% -17.80% 21.88%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology 0.00% -6.33% -10.36% -17.42% 11.56%

Based on: 10-K (filing date: 2021-03-19), 10-K (filing date: 2020-03-19), 10-K (filing date: 2019-03-25), 10-K (filing date: 2018-03-22), 10-K (filing date: 2017-03-21), 10-K (filing date: 2016-03-23).

1 2021 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × 174,900 ÷ [(745,500 + 102,000) ÷ 2] = 41.27%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Autodesk Inc. improved earnings quality from 2020 to 2021.