Robinhood Beneish M Score

HOOD -  USA Stock  

USD 14.40  0.71  5.19%

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

Robinhood Beneish M Score 

 
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As of January 21, 2022, Debt to Equity Ratio is expected to decline to -155.58.
At this time, it appears that Robinhood Markets is an unlikely manipulator. The earnings manipulation may begin if Robinhood Markets' 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 Robinhood Markets 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 Robinhood Markets' 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.
-3.56
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.97
Asset Quality
N/A
Expense Coverage
1.04
Gross Margin Strengs
1.02
Accruals Factor
1.04
Depreciation Resistance
1.0
Net Sales Growth
0.85
Financial Leverage Condition
N/A

Robinhood Markets 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 Robinhood Markets' 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
Revenues938.2 M1.1 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense490.7 M552.5 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from OperationsB2.2 B
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion10.5 M11.4 M
Significantly Down
Increasing
Slightly volatile
Total Assets11 B12.6 B
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net48.3 M52.7 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables3.3 BB
Significantly Down
Increasing
Slightly volatile
Total Liabilities8.8 B10.2 B
Fairly Down
Increasing
Slightly volatile
Current Assets10.9 B12.5 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current123.5 M133.3 M
Significantly Down
Increasing
Slightly volatile
Current Liabilities8.8 B10.1 B
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current51 M55.2 M
Significantly Down
Increasing
Slightly volatile
Operating Income17.1 M15.8 M
Significantly Up
Increasing
Slightly volatile
Gross Margin1.041.02
Fairly Up
Increasing
Slightly volatile

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

About Robinhood Markets 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

10.47 MillionShare
Robinhood Markets Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 11.43 Million

About Robinhood Markets Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Robinhood Markets's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Robinhood Markets using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Robinhood Markets 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.
Robinhood Markets, Inc. operates financial services platform in the United States. Robinhood Markets, Inc. was incorporated in 2013 and is headquartered in Menlo Park, California. Robinhood Markets operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 3400 people.

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Please check Robinhood Markets Piotroski F Score and Robinhood Markets Altman Z Score analysis. Note that the Robinhood Markets information on this page should be used as a complementary analysis to other Robinhood Markets' 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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.

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Is Robinhood Markets' 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 Robinhood Markets. If investors know Robinhood 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 Robinhood Markets 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 Robinhood Markets is measured differently than its book value, which is the value of Robinhood that is recorded on the company's balance sheet. Investors also form their own opinion of Robinhood Markets' value that differs from its market value or its book value, called intrinsic value, which is Robinhood Markets' 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 Robinhood Markets' market value can be influenced by many factors that don't directly affect Robinhood Markets' 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 Robinhood Markets' value and its price as these two are different measures arrived at by different means. Investors typically determine Robinhood Markets value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Robinhood Markets' 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.