Alphabet Beneish M Score

GOOGL
 Stock
  

USD 122.08  0.40  0.33%   

This module uses fundamental data of Alphabet to approximate the value of its Beneish M Score. Alphabet 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 Alphabet Piotroski F Score and Alphabet Altman Z Score analysis.
  
Alphabet 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 28.27 Billion. Debt Non Current is expected to hike to about 28.3 B this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (1.3 B). Alphabet Accrued Expenses Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accrued Expenses Turnover is estimated at 12.91. Operating Margin is expected to hike to 31.01 this year, although the value of Inventory Turnover will most likely fall to 96.10.
At this time, it appears that Alphabet Cl A is an unlikely manipulator. The earnings manipulation may begin if Alphabet'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 Alphabet 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'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.
-2.47
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality1.49Focus
Expense Coverage0.77Focus
Gross Margin Strengs0.97Focus
Accruals Factor0.77Focus
Depreciation Resistance1.23Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.29Focus

Alphabet 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'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
Revenues278 B257.6 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense30.2 B36.4 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations98.9 B91.7 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion10.7 B12.4 B
Fairly Down
Increasing
Slightly volatile
Total Assets299.9 B359.3 B
Fairly Down
Increasing
Slightly volatile
Investments125.4 B148.3 B
Fairly Down
Increasing
Slightly volatile
Investments Current104.4 B118.7 B
Fairly Down
Increasing
Slightly volatile
Investments Non Current31.9 B29.5 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net119.3 B110.6 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables42.4 B39.3 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities116.1 B107.6 B
Significantly Up
Increasing
Slightly volatile
Current Assets164 B188.1 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current135.9 B171.1 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities69.3 B64.3 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current46.8 B43.4 B
Significantly Up
Increasing
Slightly volatile
Total Debt28.3 B26.2 B
Significantly Up
Increasing
Slightly volatile
Debt Current3.3 B3.7 B
Moderately Down
Increasing
Slightly volatile
Debt Non Current28.3 B26.2 B
Significantly Up
Increasing
Slightly volatile
Operating Income84.9 B78.7 B
Significantly Up
Increasing
Slightly volatile
Gross Margin0.550.569
Sufficiently Down
Decreasing
Slightly volatile

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

About Alphabet 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

10.7 Billion

Alphabet Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 10.7 Billion

Alphabet 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. 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)
Revenues110.86 B136.82 B161.86 B182.53 B257.64 B277.98 B
Total Assets197.29 B232.79 B275.91 B319.62 B359.27 B299.95 B
Current Assets124.31 B135.68 B152.58 B174.3 B188.14 B164.04 B
Assets Non Current72.99 B97.12 B123.33 B145.32 B171.12 B135.91 B
Total Liabilities44.79 B55.16 B74.47 B97.07 B107.63 B116.13 B
Current Liabilities24.18 B34.62 B45.22 B56.83 B64.25 B69.33 B
Total Debt3.97 B4.01 B14.77 B25.08 B26.21 B28.27 B
Debt Non Current3.97 B4.01 B14.77 B25.08 B26.21 B28.27 B
Operating Income26.18 B27.52 B34.23 B41.22 B78.71 B84.93 B
Investments98.97 B106.3 B114.25 B130.93 B148.25 B125.44 B
Investments Current91.16 B92.44 B101.18 B110.23 B118.7 B104.45 B

About Alphabet Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Alphabet Cl A's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alphabet using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alphabet Cl 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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Alphabet without increasing your portfolio risk or giving up 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.

Did you try this?

Run Idea Breakdown Now

   

Idea Breakdown

Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Alphabet Cl A using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please check Alphabet Piotroski F Score and Alphabet Altman Z Score analysis. Note that the Alphabet Cl A information on this page should be used as a complementary analysis to other Alphabet'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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

Complementary Tools for Alphabet Stock analysis

When running Alphabet Cl A price analysis, check to measure Alphabet'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 Alphabet is operating at the current time. Most of Alphabet's value examination focuses on studying past and present price action to predict the probability of Alphabet's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Alphabet's price. Additionally, you may evaluate how the addition of Alphabet to your portfolios can decrease your overall portfolio volatility.
Global Correlations
Find global opportunities by holding instruments from different markets
Go
Focused Opportunities
Build portfolios using our predefined set of ideas and optimize them against your investing preferences
Go
Analyst Recommendations
Analyst recommendations and target price estimates broken down by several categories
Go
Competition Analyzer
Analyze and compare many basic indicators for a group of related or unrelated entities
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
ETF Directory
Find actively traded Exchange Traded Funds (ETF) from around the world
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Price Ceiling Movement
Calculate and plot Price Ceiling Movement for different equity instruments
Go
Watchlist Optimization
Optimize watchlists to build efficient portfolio or rebalance existing positions based on mean-variance optimization algorithm
Go
Idea Breakdown
Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes
Go
Fund Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Go
Is Alphabet'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 Alphabet. 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 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 Cl 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's value that differs from its market value or its book value, called intrinsic value, which is Alphabet'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 Alphabet's market value can be influenced by many factors that don't directly affect Alphabet'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 Alphabet's value and its price as these two are different measures arrived at by different means. Investors typically determine Alphabet value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alphabet'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.