Alphabet Class A Stock Beneish M Score

GOOGL Stock  USD 131.86  0.67  0.51%   
This module uses fundamental data of Alphabet Class to approximate the value of its Beneish M Score. Alphabet Class 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 Alphabet Class Piotroski F Score and Alphabet Class Altman Z Score analysis.
At this time, Alphabet Class' Total Debt is quite stable as compared to the past year. Debt Non Current is expected to rise to about 29.3 B this year, although the value of Debt Current will most likely fall to about 3.5 B. At this time, Alphabet Class' Operating Margin is quite stable as compared to the past year. . Cash and Equivalents Turnover is expected to rise to 14.25 this year, although the value of Receivables Turnover will most likely fall to 6.65.
At this time, it appears that Alphabet Class A is an unlikely manipulator. The earnings manipulation may begin if Alphabet Class' 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 Alphabet Class 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 Alphabet Class' 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.
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.03Focus
Asset Quality1.31Focus
Expense Coverage1.04Focus
Gross Margin Strengs0.97Focus
Accruals Factor1.04Focus
Depreciation Resistance0.95Focus
Net Sales Growth0.8Focus
Financial Leverage Condition1.0Focus

Alphabet Class 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 Alphabet Class' 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
Selling General and Administrative Expense35.2 B42.3 B
Significantly Down
Slightly volatile
Revenues226 B282.8 B
Significantly Down
Slightly volatile
Trade and Non Trade Receivables33.2 B40.3 B
Significantly Down
Slightly volatile
Property Plant and Equipment Net100.4 B127 B
Significantly Down
Slightly volatile
Operating Income80.8 B74.8 B
Significantly Up
Slightly volatile
Net Cash Flow from Operations74.9 B91.5 B
Significantly Down
Slightly volatile
Liabilities Non Current33.5 B39.8 B
Fairly Down
Slightly volatile
Current Liabilities56.3 B69.3 B
Significantly Down
Slightly volatile
Total Liabilities89.8 B109.1 B
Significantly Down
Slightly volatile
Investments Non Current32.9 B30.5 B
Significantly Up
Slightly volatile
Investments Current93.3 B91.9 B
Fairly Up
Slightly volatile
Investments116.4 B122.4 B
Notably Down
Slightly volatile
Gross Margin0.540.554
Fairly Down
Slightly volatile
Depreciation Amortization and Accretion13.3 B15.9 B
Significantly Down
Slightly volatile
Debt Non Current29.3 B27.2 B
Significantly Up
Slightly volatile
Debt Current3.5 B3.7 B
Notably Down
Slightly volatile
Total Debt29.3 B27.2 B
Significantly Up
Slightly volatile
Assets Non Current160.9 B200.5 B
Significantly Down
Slightly volatile
Current Assets157.6 B164.8 B
Sufficiently Down
Slightly volatile
Total Assets318.5 B365.3 B
Fairly Down
Slightly volatile

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

About Alphabet Class 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.

Depreciation Amortization and Accretion

13.27 Billion

At this time, Alphabet Class' Depreciation Amortization and Accretion is quite stable as compared to the past year.

Alphabet Class 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 Alphabet Class. 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.
201820192020202120222023 (projected)
Total Assets232.8B275.9B319.6B359.3B365.3B318.5B
Current Assets135.7B152.6B174.3B188.1B164.8B157.6B
Assets Non Current97.1B123.3B145.3B171.1B200.5B160.9B
Total Liabilities55.2B74.5B97.1B107.6B109.1B89.8B
Current Liabilities34.6B45.2B56.8B64.3B69.3B56.3B
Total Debt4.0B14.8B25.1B26.2B27.2B29.3B
Debt Non Current4.0B14.8B25.1B26.2B27.2B29.3B
Operating Income27.5B34.2B41.2B78.7B74.8B80.8B
Investments Current92.4B101.2B110.2B118.7B91.9B93.3B

About Alphabet Class Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Alphabet Class A's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alphabet Class using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alphabet Class A 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.
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The company was founded in 1998 and is headquartered in Mountain View, California. Alphabet operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs 174014 people.
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 Alphabet Class 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, Alphabet Class' short interest history, or implied volatility extrapolated from Alphabet Class options trading.

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When determining whether Alphabet Class A is a strong investment it is important to analyze Alphabet Class' 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 Alphabet Class' future performance. For an informed investment choice regarding Alphabet Stock, refer to the following important reports:
Check out Alphabet Class Piotroski F Score and Alphabet Class Altman Z Score analysis.
Note that the Alphabet Class A information on this page should be used as a complementary analysis to other Alphabet Class' 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 the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.

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