Salesforce Beneish M Score

CRM -  USA Stock  

USD 231.23  2.60  1.14%

This module uses fundamental data of Salesforce to approximate the value of its Beneish M Score. Salesforce 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 Salesforce Piotroski F Score and Salesforce Altman Z Score analysis.

Salesforce Beneish M Score 

 
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Salesforce Total Debt is relatively stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 7.79 Billion. Debt Non Current is expected to hike to about 6.8 B this year, although the value of Debt Current will most likely fall to nearly 862.2 M. Salesforce Operating Margin is relatively stable at the moment as compared to the past year. The company's current value of Operating Margin is estimated at 2.66. Cash and Equivalents Turnover is expected to hike to 3.92 this year, although the value of PPandE Turnover will most likely fall to 9.17.
At this time, it appears that Salesforce is an unlikely manipulator. The earnings manipulation may begin if Salesforce'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 Salesforce 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 Salesforce'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.
-2.72
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.0
Asset Quality
1.0
Expense Coverage
1.0
Gross Margin Strengs
1.0
Accruals Factor
1.0
Depreciation Resistance
1.0
Net Sales Growth
1.08
Financial Leverage Condition
1.0

Salesforce 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 Salesforce'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
Revenues26.4 B24.4 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense14.6 B13.5 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from OperationsB5.5 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion3.5 B3.3 B
Significantly Up
Increasing
Slightly volatile
Total Assets82.3 B76.2 B
Significantly Up
Increasing
Slightly volatile
Investments12 B11.1 B
Significantly Up
Increasing
Slightly volatile
Investments Current7.2 B6.6 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current4.9 B4.5 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment NetB6.5 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables9.7 BB
Significantly Up
Increasing
Slightly volatile
Total Liabilities30.8 B28.5 B
Significantly Up
Increasing
Slightly volatile
Current Assets27.2 B25.2 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current55.1 B51.1 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities22 B20.4 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current8.8 B8.1 B
Significantly Up
Increasing
Slightly volatile
Total Debt7.8 B7.2 B
Significantly Up
Increasing
Slightly volatile
Debt Current862.2 M880.9 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current6.8 B6.3 B
Significantly Up
Increasing
Slightly volatile
Operating Income564.6 M523.2 M
Significantly Up
Increasing
Slightly volatile
Gross Margin0.670.67
Steady
Decreasing
Slightly volatile

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

About Salesforce 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.

Operating Expenses

19.06 BillionShare
Salesforce Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 19.06 Billion

Salesforce 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 Salesforce. 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.
201720182019202020212022 (projected)
Revenues10.54 B13.28 B17.1 B21.25 B24.44 B26.37 B
Total Assets21.98 B30.74 B55.13 B66.3 B76.25 B82.27 B
Current Assets9.58 B10.68 B15.96 B21.89 B25.17 B27.16 B
Assets Non Current12.4 B20.05 B39.16 B44.41 B51.07 B55.11 B
Total Liabilities11.61 B15.13 B21.24 B24.81 B28.53 B30.78 B
Current Liabilities10.07 B11.26 B14.85 B17.73 B20.39 B22 B
Total Debt1.72 B3.17 B5.87 B6.28 B7.22 B7.79 B
Debt Non Current695 M3.17 B5.12 B5.51 B6.34 B6.84 B
Operating Income454 M535 M297 M455 M523.25 M564.56 M
Investments2.65 B2.98 B5.76 B9.68 B11.13 B12.01 B
Investments Current1.98 B1.67 B3.8 B5.77 B6.64 B7.16 B

About Salesforce Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Salesforce's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Salesforce using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Salesforce 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.
salesforce.com, inc. develops enterprise cloud computing solutions with a focus on customer relationship management worldwide. The company was founded in 1999 and is headquartered in San Francisco, California. Salesforce operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 69530 people.

Salesforce Investors Sentiment

The influence of Salesforce'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 Salesforce. 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.

Salesforce Implied Volatility

    
  40.96  
Salesforce's implied volatility exposes the market's sentiment of Salesforce stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Salesforce'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 Salesforce stock will not fluctuate a lot when Salesforce'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 Salesforce 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, Salesforce's short interest history, or implied volatility extrapolated from Salesforce options trading.

Current Sentiment - CRM

Salesforce Investor Sentiment

Predominant part of Macroaxis users are currently bullish on Salesforce. What is your outlook on investing in Salesforce? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Pair Trading with Salesforce

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

Salesforce Pair Correlation

Equities Pair Trading Analysis

Correlation analysis and pair trading evaluation for Salesforce and Forian Inc. 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  
Continue to Salesforce Piotroski F Score and Salesforce Altman Z Score analysis. Note that the Salesforce information on this page should be used as a complementary analysis to other Salesforce'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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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When running Salesforce price analysis, check to measure Salesforce'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 Salesforce is operating at the current time. Most of Salesforce's value examination focuses on studying past and present price action to predict the probability of Salesforce's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Salesforce's price. Additionally, you may evaluate how the addition of Salesforce to your portfolios can decrease your overall portfolio volatility.
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Is Salesforce'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 Salesforce. If investors know Salesforce 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 Salesforce 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 Salesforce is measured differently than its book value, which is the value of Salesforce that is recorded on the company's balance sheet. Investors also form their own opinion of Salesforce's value that differs from its market value or its book value, called intrinsic value, which is Salesforce'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 Salesforce's market value can be influenced by many factors that don't directly affect Salesforce'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 Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine Salesforce value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce'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.