The Boeing Stock Beneish M Score

BA Stock  USD 179.84  2.69  1.47%   
This module uses fundamental data of Boeing to approximate the value of its Beneish M Score. Boeing 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. Check out Boeing Piotroski F Score and Boeing Altman Z Score analysis.
  
At present, Boeing's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 41.9 B, whereas Short and Long Term Debt is forecasted to decline to about 3.6 B. At present, Boeing's Price To Sales Ratio is projected to increase slightly based on the last few years of reporting. The current year's Operating Cycle is expected to grow to 490.66, whereas Short Term Coverage Ratios is forecasted to decline to 1.03.
At this time, it appears that Boeing is an unlikely manipulator. The earnings manipulation may begin if Boeing'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 Boeing 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 Boeing'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.
-2.84
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.71

Focus
Asset Quality

1.03

Focus
Expense Coverage

1.06

Focus
Gross Margin Strengs

1.51

Focus
Accruals Factor

1.06

Focus
Depreciation Resistance

1.09

Focus
Net Sales Growth

0.77

Focus
Financial Leverage Condition

1.0

Focus

Boeing 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 Boeing'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
Net ReceivablesB11.1 B
Way Down
Slightly volatile
Total Revenue59.7 B77.8 B
Way Down
Very volatile
Total Assets143.9 B137 B
Sufficiently Up
Slightly volatile
Total Current Assets114.7 B109.3 B
Sufficiently Up
Slightly volatile
Non Current Assets Total24.6 B27.7 B
Fairly Down
Slightly volatile
Property Plant Equipment11.9 B12.1 B
Fairly Down
Slightly volatile
Depreciation And Amortization1.7 B1.9 B
Fairly Down
Slightly volatile
Selling General Administrative4.2 B5.2 B
Significantly Down
Slightly volatile
Total Current Liabilities100.6 B95.8 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total61.3 B58.4 B
Sufficiently Up
Slightly volatile
Short Term Debt5.8 B5.5 B
Sufficiently Up
Slightly volatile
Long Term Debt49.3 B46.9 B
Sufficiently Up
Slightly volatile
Short Term Investments2.7 B3.3 B
Significantly Down
Pretty Stable
Long Term Investments983.2 MB
Notably Down
Slightly volatile

Boeing 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 Boeing's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Boeing in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Boeing's degree of accounting gimmicks and manipulations.

About Boeing 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.

Current Deferred Revenue

59.14 Billion

At present, Boeing's Current Deferred Revenue is projected to increase significantly based on the last few years of reporting.

Boeing 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 Boeing. 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.
201920202021202220232024 (projected)
Net Receivables12.5B10.1B11.4B11.3B11.1B6.0B
Total Revenue76.6B58.2B62.3B66.6B77.8B59.7B
Total Assets133.6B152.1B138.6B137.1B137.0B143.9B
Total Current Assets102.2B121.6B108.7B109.5B109.3B114.7B
Net Debt17.8B55.8B50.1B42.4B39.9B41.9B
Short Term Debt7.3B1.7B1.3B5.2B5.5B5.8B
Long Term Debt19.8B61.9B56.8B51.8B46.9B49.3B
Operating Income(2.2B)(12.8B)(3.4B)(3.5B)(773M)(734.4M)
Investments101M(17.3B)9.8B5.6B(2.4B)(2.3B)

Boeing ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Boeing's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Boeing's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Boeing Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze The Boeing's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Boeing using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of The Boeing 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.
The Boeing Company, together with its subsidiaries, designs, develops, manufactures, sales, services, and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems, and services worldwide. The company was incorporated in 1916 and is based in Chicago, Illinois. Boeing operates under Aerospace Defense classification in the United States and is traded on New York Stock Exchange. It employs 142000 people.

Pair Trading with Boeing

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 Boeing 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 Boeing will appreciate offsetting losses from the drop in the long position's value.

Moving together with Boeing Stock

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The ability to find closely correlated positions to Boeing could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Boeing when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Boeing - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling The Boeing to buy it.
The correlation of Boeing is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Boeing moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Boeing moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Boeing can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Boeing offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Boeing's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of The Boeing Stock. Outlined below are crucial reports that will aid in making a well-informed decision on The Boeing Stock:
Check out Boeing Piotroski F Score and Boeing Altman Z Score analysis.
Note that the Boeing information on this page should be used as a complementary analysis to other Boeing'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 the Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.

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Is Boeing'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 Boeing. If investors know Boeing 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 Boeing listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.68)
Earnings Share
(3.67)
Revenue Per Share
128.415
Quarterly Revenue Growth
0.102
Return On Assets
0.0059
The market value of Boeing is measured differently than its book value, which is the value of Boeing that is recorded on the company's balance sheet. Investors also form their own opinion of Boeing's value that differs from its market value or its book value, called intrinsic value, which is Boeing'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 Boeing's market value can be influenced by many factors that don't directly affect Boeing'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 Boeing's value and its price as these two are different measures arrived at by different means. Investors typically determine if Boeing is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Boeing'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.