Boeing Beneish M Score

BA -  USA Stock  

USD 226.48  5.15  2.22%

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. Continue to Boeing Piotroski F Score and Boeing Altman Z Score analysis.

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Boeing Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 63.58 Billion. The current year Debt Current is expected to grow to about 2.1 B, whereas Debt to Equity Ratio is forecasted to decline to (9.54) . Boeing Long Term Debt to Equity is projected to increase significantly based on the last few years of reporting. The past year's Long Term Debt to Equity was at 28.29. The current year Calculated Tax Rate is expected to grow to 11.75, whereas Interest Coverage is forecasted to decline to 19.64.
At this time, it appears that Boeing Company is a possible 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.
-1.36
Beneish M Score - Possible Manipulator
Elasticity of Receivables
0.83
Asset Quality
2.77
Expense Coverage
0.74
Gross Margin Strengs
1.02
Accruals Factor
0.74
Depreciation Resistance
1.04
Net Sales Growth
1.35
Financial Leverage Condition
1.01

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
Revenues78.6 B58.2 B
Significantly Up
Increasing
Very volatile
Selling General and Administrative Expense4.8 B4.8 B
Slightly Down
Increasing
Slightly volatile
Net Cash Flow from Operations(18.9 B)(18.4 B)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion2.3 B2.2 B
Fairly Up
Increasing
Slightly volatile
Total Assets139.2 B152.1 B
Significantly Down
Increasing
Slightly volatile
Investments20.3 B18.9 B
Significantly Up
Increasing
Slightly volatile
Investments Current19.2 B17.8 B
Significantly Up
Increasing
Slightly volatile
Investments Non CurrentBB
Slightly Up
Decreasing
Stable
Property Plant and Equipment Net12.7 B11.8 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables13.4 B12 B
Moderately Up
Increasing
Slightly volatile
Total Liabilities147.7 B170.2 B
Fairly Down
Increasing
Slightly volatile
Current Assets106.6 B121.6 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current32.6 B30.5 B
Notably Up
Increasing
Slightly volatile
Current Liabilities80.8 B87.3 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current66.9 B82.9 B
Significantly Down
Increasing
Slightly volatile
Total Debt68.6 B63.6 B
Significantly Up
Increasing
Slightly volatile
Debt Current2.1 B1.7 B
Fairly Up
Increasing
Slightly volatile
Debt Non Current66.8 B61.9 B
Significantly Up
Increasing
Slightly volatile
Operating Income(13.3 B)(13 B)
Fairly Down
Decreasing
Slightly volatile
Gross Margin(0.1)(0.098)
Fairly Down
Decreasing
Slightly volatile

Boeing Company 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.

Deferred Revenue

44.29 BillionShare
Boeing Deferred Revenue is projected to increase significantly based on the last few years of reporting. The past year's Deferred Revenue was at 50.49 Billion

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.
201620172018201920202021 (projected)
Revenues93.5 B94 B101.13 B76.56 B58.16 B78.59 B
Total Assets90 B112.36 B117.36 B133.62 B152.14 B139.17 B
Current Assets62.49 B85.19 B87.83 B102.23 B121.64 B106.56 B
Assets Non Current27.51 B27.17 B29.53 B31.4 B30.49 B32.62 B
Total Liabilities89.12 B110.65 B116.95 B141.93 B170.21 B147.67 B
Current Liabilities50.13 B74.65 B81.59 B97.31 B87.28 B80.82 B
Total Debt9.95 B11.12 B13.85 B27.3 B63.58 B68.6 B
Debt Current384 M1.33 B3.19 B7.34 B1.69 B2.07 B
Debt Non Current9.57 B9.78 B10.66 B19.96 B61.89 B66.78 B
Operating Income6.53 B10.32 B11.91 B(2.67 B)(12.97 B)(13.31 B)
Investments2.54 B2.44 B2.01 B1.64 B18.85 B20.34 B
Investments Current1.23 B1.18 B927 M545 M17.84 B19.25 B

About Boeing Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Boeing Company'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 Boeing Company 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 founded 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 141000 people.

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Our tools can tell you how much better you can do entering a position in Boeing without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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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.

Boeing Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Boeing and Ehang Holdings. 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
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Continue to Boeing Piotroski F Score and Boeing Altman Z Score analysis. Note that the Boeing Company 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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When running Boeing Company price analysis, check to measure Boeing'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 Boeing is operating at the current time. Most of Boeing's value examination focuses on studying past and present price action to predict the probability of Boeing's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Boeing's price. Additionally, you may evaluate how the addition of Boeing to your portfolios can decrease your overall portfolio volatility.
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The market value of Boeing Company 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 Company underlying business (such as 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 Boeing value 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.