Glaxosmithkline Plc Adr Stock Beneish M Score

GSK Stock  USD 40.86  0.38  0.92%   
This module uses fundamental data of GlaxoSmithKline PLC to approximate the value of its Beneish M Score. GlaxoSmithKline PLC 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 GlaxoSmithKline PLC Piotroski F Score and GlaxoSmithKline PLC Altman Z Score analysis.
  
At this time, GlaxoSmithKline PLC's Cash Flow To Debt Ratio is quite stable compared to the past year. At this time, GlaxoSmithKline PLC's PB Ratio is quite stable compared to the past year. Free Cash Flow Per Share is expected to rise to 1.06 this year, although Book Value Per Share will most likely fall to 2.26.
At this time, GlaxoSmithKline PLC's M Score is unavailable. The earnings manipulation may begin if GlaxoSmithKline PLC'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 GlaxoSmithKline PLC 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 GlaxoSmithKline PLC'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.
-2.52
Beneish M Score - Unavailable
Elasticity of Receivables

1.33

Focus
Asset Quality

0.68

Focus
Expense Coverage

1.6

Focus
Gross Margin Strengs

1.11

Focus
Accruals Factor

1.6

Focus
Depreciation Resistance

1.9

Focus
Net Sales Growth

0.66

Focus
Financial Leverage Condition

0.97

Focus

GlaxoSmithKline PLC 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 GlaxoSmithKline PLC'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
Net Receivables6.5 B7.4 B
Fairly Down
Slightly volatile
Total Revenue19.9 B30.3 B
Way Down
Slightly volatile
Total Assets32.8 B59 B
Way Down
Slightly volatile
Total Current Assets11.9 B18.6 B
Way Down
Slightly volatile
Non Current Assets Total20.9 B40.4 B
Way Down
Slightly volatile
Property Plant Equipment9.7 B8.7 B
Moderately Up
Slightly volatile
Depreciation And Amortization1.2 B2.3 B
Way Down
Slightly volatile
Selling General Administrative9.8 B9.4 B
Sufficiently Up
Slightly volatile
Total Current Liabilities11.2 B21.1 B
Way Down
Slightly volatile
Non Current Liabilities Total14.3 B25.1 B
Way Down
Slightly volatile
Net Debt8.3 B15.1 B
Way Down
Slightly volatile
Short Term Debt2.2 B2.8 B
Significantly Down
Slightly volatile
Long Term Debt17.5 B14.2 B
Fairly Up
Very volatile
Operating IncomeBB
Way Down
Pretty Stable
Total Cash From Operating Activities4.9 B6.3 B
Significantly Down
Slightly volatile
Short Term Investments2.4 B2.2 B
Sufficiently Up
Slightly volatile
Long Term Investments77.6 B73.9 B
Sufficiently Up
Slightly volatile
Gross Profit Margin0.780.7007
Moderately Up
Pretty Stable

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

About GlaxoSmithKline PLC 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.

Other Operating Expenses

15.33 Billion

At this time, GlaxoSmithKline PLC's Other Operating Expenses is quite stable compared to the past year.

GlaxoSmithKline PLC 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 GlaxoSmithKline PLC. 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.
201920202021202220232024 (projected)
Net Receivables7.1B7.3B8.0B7.1B7.4B6.5B
Total Revenue33.8B34.1B34.1B29.3B30.3B19.9B
Total Assets79.7B80.4B79.1B60.1B59.0B32.8B
Total Current Assets19.5B20.2B18.7B20.8B18.6B11.9B
Net Debt25.8B20.9B19.9B17.3B15.1B8.3B
Short Term Debt6.9B3.7B3.6B4.0B2.8B2.2B
Long Term Debt22.6B23.4B20.6B17.0B14.2B17.5B
Operating Income7.0B7.8B6.2B6.4B7.0B5.0B
Investments(5.4B)2.2B334M(8.8B)(1.6B)(1.5B)

About GlaxoSmithKline PLC Fundamental Analysis

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

GlaxoSmithKline PLC Investors Sentiment

The influence of GlaxoSmithKline PLC'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 GlaxoSmithKline. 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 market does not have solid backing from leading economists and market statisticians.
Investor biases related to GlaxoSmithKline PLC's public news can be used to forecast risks associated with an investment in GlaxoSmithKline. The trend in average sentiment can be used to explain how an investor holding GlaxoSmithKline can time the market purely based on public headlines and social activities around GlaxoSmithKline PLC ADR. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
GlaxoSmithKline PLC's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for GlaxoSmithKline PLC's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average GlaxoSmithKline PLC's news discussions. The higher the estimated score, the more favorable is the investor's outlook on GlaxoSmithKline PLC.

GlaxoSmithKline PLC Implied Volatility

    
  33.78  
GlaxoSmithKline PLC's implied volatility exposes the market's sentiment of GlaxoSmithKline PLC ADR stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if GlaxoSmithKline PLC'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 GlaxoSmithKline PLC stock will not fluctuate a lot when GlaxoSmithKline PLC'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 GlaxoSmithKline PLC 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, GlaxoSmithKline PLC's short interest history, or implied volatility extrapolated from GlaxoSmithKline PLC options trading.

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When determining whether GlaxoSmithKline PLC ADR is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if GlaxoSmithKline Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Glaxosmithkline Plc Adr Stock. Highlighted below are key reports to facilitate an investment decision about Glaxosmithkline Plc Adr Stock:
Check out GlaxoSmithKline PLC Piotroski F Score and GlaxoSmithKline PLC Altman Z Score analysis.
You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.

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When running GlaxoSmithKline PLC's price analysis, check to measure GlaxoSmithKline PLC'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 GlaxoSmithKline PLC is operating at the current time. Most of GlaxoSmithKline PLC's value examination focuses on studying past and present price action to predict the probability of GlaxoSmithKline PLC's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move GlaxoSmithKline PLC's price. Additionally, you may evaluate how the addition of GlaxoSmithKline PLC to your portfolios can decrease your overall portfolio volatility.
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Is GlaxoSmithKline PLC'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 GlaxoSmithKline PLC. If investors know GlaxoSmithKline 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 GlaxoSmithKline PLC 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
(0.77)
Dividend Share
0.58
Earnings Share
2.97
Revenue Per Share
14.97
Quarterly Revenue Growth
0.092
The market value of GlaxoSmithKline PLC ADR is measured differently than its book value, which is the value of GlaxoSmithKline that is recorded on the company's balance sheet. Investors also form their own opinion of GlaxoSmithKline PLC's value that differs from its market value or its book value, called intrinsic value, which is GlaxoSmithKline PLC'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 GlaxoSmithKline PLC's market value can be influenced by many factors that don't directly affect GlaxoSmithKline PLC'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 GlaxoSmithKline PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if GlaxoSmithKline PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, GlaxoSmithKline PLC'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.