Activision Beneish M Score

ATVI -  USA Stock  

USD 60.31  0.31  0.51%

This module uses fundamental data of Activision Blizzard to approximate the value of its Beneish M Score. Activision Blizzard M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Please continue to Activision Blizzard Piotroski F Score and Activision Blizzard Altman Z Score analysis.

Activision Beneish M Score 

 
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Activision Blizzard Debt to Equity Ratio is most likely to increase slightly in the upcoming years. The last year's value of Debt to Equity Ratio was reported at 0.54. Activision Blizzard Calculated Tax Rate is most likely to slightly decrease in the upcoming years. The last year's value of Calculated Tax Rate was reported at 16.02. The current PPandE Turnover is estimated to increase to 35.18, while Receivables Turnover is projected to decrease to 7.68.
At this time, it appears that Activision Blizzard is an unlikely manipulator. The earnings manipulation may begin if Activision Blizzard's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Activision Blizzard executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Activision Blizzard's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.48
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.01
Asset Quality
1.02
Expense Coverage
1.04
Gross Margin Strengs
1.05
Accruals Factor
1.04
Depreciation Resistance
0.94
Net Sales Growth
0.94
Financial Leverage Condition
1.05

Activision Blizzard Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Activision Blizzard's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Revenues7.6 B8.1 B
Notably Down
Increasing
Slightly volatile
Selling General and Administrative Expense1.8 B1.8 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations2.1 B2.3 B
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion329.4 M262 M
Significantly Up
Increasing
Slightly volatile
Total Assets21.7 B23.1 B
Notably Down
Increasing
Slightly volatile
Investments4.4 B4.1 B
Significantly Up
Increasing
Slightly volatile
Investments Current9.2 MM
Fairly Up
Decreasing
Slightly volatile
Investments Non Current4.4 B4.1 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net228.6 M209 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables999.1 M1.1 B
Notably Down
Increasing
Slightly volatile
Total Liabilities7.9 B8.1 B
Fairly Down
Increasing
Slightly volatile
Current Assets9.2 B10.6 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current12.6 B12.5 B
Slightly Up
Increasing
Slightly volatile
Current Liabilities3.3 B3.1 B
Sufficiently Up
Increasing
Slightly volatile
Liabilities Non Current4.7 BB
Notably Down
Increasing
Slightly volatile
Total Debt3.5 B3.6 B
Fairly Down
Decreasing
Slightly volatile
Debt Current22.4 M22.5 M
Slightly Down
Decreasing
Slightly volatile
Debt Non Current3.5 B3.6 B
Fairly Down
Decreasing
Slightly volatile
Operating Income2.3 B2.7 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.760.721
Notably Up
Increasing
Slightly volatile

Activision Blizzard Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Activision Blizzard's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Activision Blizzard in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Activision Blizzard's degree of accounting gimmicks and manipulations.

About Activision Blizzard Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

329.42 MillionShare
Activision Blizzard Depreciation Amortization and Accretion is most likely to increase significantly in the upcoming years. The last year's value of Depreciation Amortization and Accretion was reported at 262 Million

Activision Blizzard Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Activision Blizzard. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201620172018201920202021 (projected)
Revenues6.61 B7.02 B7.5 B6.49 B8.09 B7.59 B
Total Assets17.45 B18.67 B17.89 B19.84 B23.11 B21.73 B
Current Assets4.83 B6.52 B6.11 B7.29 B10.56 B9.17 B
Assets Non Current12.62 B12.15 B11.78 B12.55 B12.54 B12.56 B
Total Liabilities8.33 B9.21 B6.5 B7.04 B8.07 B7.93 B
Current Liabilities2.66 B3.66 B2.64 B2.92 B3.1 B3.26 B
Total Debt4.89 B4.39 B2.67 B2.67 B3.6 B3.55 B
Debt Non Current4.89 B4.39 B2.67 B2.67 B3.6 B3.54 B
Operating Income1.41 B1.31 B1.99 B1.61 B2.73 B2.29 B

About Activision Blizzard Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Activision Blizzard's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Activision Blizzard using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Activision Blizzard based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Activision Blizzard, Inc., together with its subsidiaries, develops and publishes interactive entertainment content and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Activision Blizzard, Inc. is headquartered in Santa Monica, California. Activision Blizzard operates under Electronic Gaming Multimedia classification in the United States and is traded on NASDAQ Exchange. It employs 9500 people.

Activision Blizzard Investors Sentiment

The influence of Activision Blizzard's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Activision. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.

Activision Blizzard Implied Volatility

    
  47.08  
Activision Blizzard's implied volatility exposes the market's sentiment of Activision Blizzard stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Activision Blizzard's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Activision Blizzard stock will not fluctuate a lot when Activision Blizzard's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Activision Blizzard in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Activision Blizzard's short interest history, or implied volatility extrapolated from Activision Blizzard options trading.

Current Sentiment - ATVI

Activision Blizzard Investor Sentiment

Majority of Macroaxis users are presently bullish on Activision Blizzard. What is your sentiment towards investing in Activision Blizzard? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with Activision Blizzard

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Activision Blizzard position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Activision Blizzard will appreciate offsetting losses from the drop in the long position's value.

Activision Blizzard Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Activision Blizzard and Blue Hat Interactive. Pair trading can be used as a hedging technique within a particular sector or industry or even over random equities to generate better risk-adjusted return
Run Pair Correlation  
Please continue to Activision Blizzard Piotroski F Score and Activision Blizzard Altman Z Score analysis. Note that the Activision Blizzard information on this page should be used as a complementary analysis to other Activision Blizzard's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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When running Activision Blizzard price analysis, check to measure Activision Blizzard's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Activision Blizzard is operating at the current time. Most of Activision Blizzard's value examination focuses on studying past and present price action to predict the probability of Activision Blizzard's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Activision Blizzard's price. Additionally, you may evaluate how the addition of Activision Blizzard to your portfolios can decrease your overall portfolio volatility.
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Is Activision Blizzard's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Activision Blizzard. If investors know Activision will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Activision Blizzard listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Activision Blizzard is measured differently than its book value, which is the value of Activision that is recorded on the company's balance sheet. Investors also form their own opinion of Activision Blizzard's value that differs from its market value or its book value, called intrinsic value, which is Activision Blizzard's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Activision Blizzard's market value can be influenced by many factors that don't directly affect Activision Blizzard's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Activision Blizzard's value and its price as these two are different measures arrived at by different means. Investors typically determine Activision Blizzard value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Activision Blizzard's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.