Meta Platforms Beneish M Score

FB -  USA Stock  

USD 326.48  5.42  1.63%

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

Meta Platforms Beneish M Score 

 
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Meta Platforms Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 12.25 Billion. The current year Debt Current is expected to grow to about 1.3 B, whereas Issuance Repayment of Debt Securities is forecasted to decline to (535.7 M). Meta Platforms Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.002783. The current year Calculated Tax Rate is expected to grow to 14.35, whereas Interest Coverage is forecasted to decline to 54.75.
At this time, it appears that Meta Platforms is an unlikely manipulator. The earnings manipulation may begin if Meta Platforms' 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 Meta Platforms 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 Meta Platforms' 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.
-2.57
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.0
Asset Quality
1.0
Expense Coverage
1.0
Gross Margin Strengs
1.03
Accruals Factor
1.0
Depreciation Resistance
1.0
Net Sales Growth
1.08
Financial Leverage Condition
1.0

Meta Platforms 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 Meta Platforms' 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
Revenues106.7 B98.9 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense22.5 B20.9 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations48.1 B44.6 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion8.5 B7.9 B
Significantly Up
Increasing
Slightly volatile
Total Assets197.7 B183.2 B
Significantly Up
Increasing
Slightly volatile
Investments62.8 B58.2 B
Significantly Up
Increasing
Slightly volatile
Investments Current55.1 B51 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current7.7 B7.2 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net68.2 B63.2 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables14.1 B13 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities38.5 B35.7 B
Significantly Up
Increasing
Slightly volatile
Current Assets93.9 B87 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current103.8 B96.2 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities18.6 B17.2 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current19.9 B18.5 B
Significantly Up
Increasing
Slightly volatile
Total Debt13.2 B12.3 B
Significantly Up
Increasing
Slightly volatile
Debt Current1.3 B1.2 B
Significantly Up
Increasing
Slightly volatile
Debt Non Current12 B11.1 B
Significantly Up
Increasing
Slightly volatile
Operating Income40.5 B37.6 B
Significantly Up
Increasing
Slightly volatile
Gross Margin0.960.93
Sufficiently Up
Increasing
Slightly volatile

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

About Meta Platforms 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

473.98 MillionShare
Meta Platforms Deferred Revenue is projected to increase significantly based on the last few years of reporting. The past year's Deferred Revenue was at 439.3 Million

Meta Platforms 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 Meta Platforms. 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)
Revenues40.65 B55.84 B70.7 B85.97 B98.86 B106.66 B
Total Assets84.52 B97.33 B133.38 B159.32 B183.21 B197.68 B
Current Assets48.56 B50.48 B66.22 B75.67 B87.02 B93.89 B
Assets Non Current35.96 B46.85 B67.15 B83.65 B96.19 B103.79 B
Total Liabilities10.18 B13.21 B32.32 B31.03 B35.68 B38.5 B
Current Liabilities3.76 B7.02 B15.05 B14.98 B17.23 B18.59 B
Operating Income20.2 B24.91 B23.99 B32.67 B37.57 B40.54 B
Investments33.63 B31.09 B35.86 B50.61 B58.2 B62.8 B
Investments Current33.63 B31.09 B35.78 B44.38 B51.03 B55.06 B

About Meta Platforms Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Meta Platforms's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Meta Platforms using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Meta Platforms 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.
Meta Platforms, Inc. develops products that enable people to connect and share with friends and family through mobile devices, personal computers, virtual reality headsets, and in-home devices worldwide. Meta Platforms, Inc. was founded in 2004 and is headquartered in Menlo Park, California. Meta Platforms operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs 68177 people.

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Please check Meta Platforms Piotroski F Score and Meta Platforms Altman Z Score analysis. Note that the Meta Platforms information on this page should be used as a complementary analysis to other Meta Platforms' 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.

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