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. Check out Salesforce Piotroski F Score and Salesforce Altman Z Score analysis.
Earnings Before Interest Taxes and Depreciation Amortization EBITDA
Earnings Before Interest Taxes and Depreciation Amortization USD
Earnings before Tax
Average Equity
Enterprise Value
Free Cash Flow
Invested Capital
Invested Capital Average
Market Capitalization
Tangible Asset Value
Working Capital
Interest Coverage
Long Term Debt to Equity
Calculated Tax Rate
PPandE Turnover
Receivables Turnover
Accounts Payable Turnover
Accrued Expenses Turnover
Operating Margin
Cash and Equivalents Turnover
Return on Investment
Cash Flow Per Share
Revenue to Assets
Total Assets Per Share
Quick Ratio
Net Current Assets as percentage of Total Assets
Asset Turnover
Book Value per Share
Current Ratio
Debt to Equity Ratio
EBITDA Margin
Earnings per Basic Share
Earnings per Diluted Share
Earnings per Basic Share USD
Enterprise Value over EBIT
Enterprise Value over EBITDA
Free Cash Flow per Share
Gross Margin
Profit Margin
Price to Book Value
Price to Earnings Ratio
Price to Sales Ratio
Return on Average Assets
Return on Average Equity
Return on Invested Capital
Return on Sales
Sales per Share
Tangible Assets Book Value per Share
Capital Expenditure
Depreciation Amortization and Accretion
Net Cash Flow or Change in Cash and Cash Equivalents
Net Cash Flow Business Acquisitions and Disposals
Issuance Purchase of Equity Shares
Issuance Repayment of Debt Securities
Net Cash Flow from Financing
Net Cash Flow from Investing
Net Cash Flow Investment Acquisitions and Disposals
Net Cash Flow from Operations
Effect of Exchange Rate Changes on Cash
Share Based Compensation
Receivables
Accounts Payable
Accumulated Other Comprehensive Income
Total Assets
Current Assets
Assets Non Current
Cash and Equivalents
Cash and Equivalents USD
Total Debt
Debt Current
Debt Non Current
Total Debt USD
Deferred Revenue
Shareholders Equity Attributable to Parent
Shareholders Equity USD
Goodwill and Intangible Assets
Investments
Investments Current
Investments Non Current
Total Liabilities
Current Liabilities
Liabilities Non Current
Trade and Non Trade Payables
Property Plant and Equipment Net
Trade and Non Trade Receivables
Accumulated Retained Earnings Deficit
Tax Assets
Direct Expenses
Consolidated Income
Cost of Revenue
Earning Before Interest and Taxes EBIT
Earning Before Interest and Taxes USD
Gross Profit
Interest Expense
Net Income
Net Income Common Stock
Net Income Common Stock USD
Operating Expenses
Operating Income
Revenues
Revenues USD
Research and Development Expense
Selling General and Administrative Expense
Weighted Average Shares
Weighted Average Shares Diluted
Income Tax Expense
Probability Of Bankruptcy
At this time, Salesforce's Total Debt is very stable as compared to the past year. As of the 28th of November 2023, Debt Non Current is likely to grow to about 13.3 B, while Debt Current is likely to drop about 1.4 B. At this time, Salesforce's Cash Flow Per Share is very stable as compared to the past year. . As of the 28th of November 2023, Revenue to Assets is likely to grow to 0.43, while Accrued Expenses Turnover is likely to drop 7.97.
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.
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.
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.
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
23.7 Billion
At this time, Salesforce's Operating Expenses is very stable as compared to the past year.
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.
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, Salesforce's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Salesforce's managers, analysts, and investors.
Environment Score
Governance Score
Social Score
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, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Salesforce, Inc. was incorporated 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 78634 people.
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Our tools can tell you how much better you can do entering a position in Salesforce without increasing your portfolio risk or giving up the 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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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.
The ability to find closely correlated positions to Salesforce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Salesforce 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 Salesforce - 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 Salesforce to buy it.
The correlation of Salesforce 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 Salesforce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Salesforce 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 Salesforce 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.
When determining whether Salesforce is a strong investment it is important to analyze Salesforce's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Salesforce's future performance. For an informed investment choice regarding Salesforce Stock, refer to the following important reports:
To learn how to invest in Salesforce Stock, please use our How to Invest in Salesforce guide.You can also try the Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Complementary Tools for Salesforce Stock analysis
When running Salesforce's 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 the 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.
Quarterly Earnings Growth
17.767
Earnings Share
1.59
Revenue Per Share
33.626
Quarterly Revenue Growth
0.114
Return On Assets
0.0288
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 if Salesforce is a good investment 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.