General Beneish M Score

GE -  USA Stock  

USD 90.36  0.75  0.82%

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

General Beneish M Score 

 
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General Electric Debt Current is projected to decrease significantly based on the last few years of reporting. The past year's Debt Current was at 4.24 Billion. The current year Debt Non Current is expected to grow to about 82.3 B, whereas Long Term Debt to Equity is forecasted to decline to 1.77. General Electric PPandE Turnover is projected to slightly decrease based on the last few years of reporting. The past year's PPandE Turnover was at 2.08. The current year Receivables Turnover is expected to grow to 5.66, whereas Calculated Tax Rate is forecasted to decline to (8.43) .
At this time, it appears that General Electric is an unlikely manipulator. The earnings manipulation may begin if General Electric'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 General Electric 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 General Electric'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.
-2.24
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.86
Asset Quality
1.41
Expense Coverage
0.93
Gross Margin Strengs
1.09
Accruals Factor
0.93
Depreciation Resistance
1.0
Net Sales Growth
1.19
Financial Leverage Condition
0.91

General Electric 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 General Electric'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
Revenues85.4 B71.7 B
Fairly Up
Decreasing
Slightly volatile
Selling General and Administrative Expense12.6 B11.4 B
Significantly Up
Decreasing
Slightly volatile
Net Cash Flow from Operations3.3 B3.2 B
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion5.6 B5.4 B
Fairly Up
Decreasing
Slightly volatile
Total Assets322.4 B230.6 B
Significantly Up
Decreasing
Slightly volatile
Investments41.4 B44.9 B
Significantly Down
Decreasing
Very volatile
Investments Current7.1 B6.6 B
Significantly Up
Decreasing
Slightly volatile
Investments Non Current49.3 B48.9 B
Slightly Up
Increasing
Slightly volatile
Property Plant and Equipment Net15.4 B15 B
Fairly Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables21.5 B20.9 B
Fairly Up
Decreasing
Slightly volatile
Total Liabilities267 B197.2 B
Significantly Up
Decreasing
Slightly volatile
Current Assets80 B76.7 B
Sufficiently Up
Decreasing
Slightly volatile
Assets Non Current199.9 B196.7 B
Fairly Up
Increasing
Slightly volatile
Current Liabilities54 B49.2 B
Significantly Up
Decreasing
Slightly volatile
Liabilities Non Current192.5 B189.2 B
Fairly Up
Increasing
Slightly volatile
Total Debt69.2 B67.4 B
Fairly Up
Decreasing
Slightly volatile
Debt Current4.4 B4.2 B
Fairly Up
Decreasing
Slightly volatile
Debt Non Current82.3 B80.7 B
Fairly Up
Increasing
Slightly volatile
Operating Income(448.9 M)(437.4 M)
Fairly Down
Decreasing
Slightly volatile
Gross Margin0.240.22
Significantly Up
Decreasing
Slightly volatile

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

About General Electric 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

18.1 BillionShare
General Electric Deferred Revenue is projected to decrease significantly based on the last few years of reporting. The past year's Deferred Revenue was at 18.15 Billion

General Electric 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 General Electric. 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)
Trade and Non Trade Receivables40.85 B29.49 B26.85 B23.23 B20.9 B21.45 B
Revenues99.28 B97.01 B95.21 B79.62 B71.66 B85.36 B
Total Assets369.25 B311.07 B265.18 B256.21 B230.59 B322.4 B
Property Plant and Equipment Net53.87 B43.61 B45.88 B16.7 B15.03 B15.42 B
Depreciation Amortization and Accretion6.19 B6.58 B5.59 B6.02 B5.42 B5.57 B
Selling General and Administrative Expense14.26 B14.64 B13.95 B12.62 B11.36 B12.6 B
Total Liabilities292.36 B259.59 B235.32 B219.14 B197.22 B266.98 B
Total Debt134.59 B103.6 B90.88 B74.9 B67.41 B69.19 B
Operating Income(6.35 B)(15.79 B)6 B(486 M)(437.4 M)(448.91 M)
Net Cash Flow from Operations6.55 B4.98 B8.77 B3.6 B3.24 B3.32 B
Investments38.7 B33.51 B48.52 B49.87 B44.88 B41.4 B

About General Electric Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze General Electric's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of General Electric using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of General Electric 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.
General Electric Company operates as a high-tech industrial company worldwide. The company was founded in 1878 and is headquartered in Boston, Massachusetts. General Electric operates under Specialty Industrial Machinery classification in the United States and is traded on New York Stock Exchange. It employs 174000 people.

General Electric Investors Sentiment

The influence of General Electric'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 General. 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.

General Electric Implied Volatility

    
  62.8  
General Electric's implied volatility exposes the market's sentiment of General Electric stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if General Electric'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 General Electric stock will not fluctuate a lot when General Electric'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 General Electric 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, General Electric's short interest history, or implied volatility extrapolated from General Electric options trading.

Current Sentiment - GE

General Electric Investor Sentiment

Nearly all of Macroaxis users are currently bullish on General Electric. What is your judgment towards investing in General Electric? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Please check General Electric Piotroski F Score and General Electric Altman Z Score analysis. Note that the General Electric information on this page should be used as a complementary analysis to other General Electric'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 Bond Directory module to find actively traded corporate debentures issued by US companies.

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