International Beneish M Score

Stocks . USA . 
Stock . International Business Machines
IBM Stock  USD 125.29  1.92  1.56%   
This module uses fundamental data of International Business to approximate the value of its Beneish M Score. International Business 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 International Business Piotroski F Score and International Business Altman Z Score analysis. To learn how to invest in International Stock please use our How to Invest in International Business guide.
  
International Business Total Debt is very stable at the moment as compared to the past year. International Business reported last year Total Debt of 54.01 Billion. As of 26th of March 2023, Debt Current is likely to grow to about 7.4 B, while Long Term Debt to Equity is likely to drop 1.96. International Business Cash Flow Per Share is very stable at the moment as compared to the past year. International Business reported last year Cash Flow Per Share of 11.52. As of 26th of March 2023, Revenue to Assets is likely to grow to 0.65, while Calculated Tax Rate is likely to drop (55.57) .
At this time, it appears that International Business is an unlikely manipulator. The earnings manipulation may begin if International Business' 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 International Business 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 International Business' 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.
-2.72
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.01Focus
Asset Quality0.94Focus
Expense Coverage0.94Focus
Gross Margin Strengs1.07Focus
Accruals Factor0.94Focus
Depreciation Resistance0.99Focus
Net Sales Growth1.06Focus
Financial Leverage Condition0.99Focus

International Business 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 International Business' 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 Expense18.5 B18.6 B
Slightly Down
Down
Slightly volatile
Revenues64.2 B60.5 B
Notably Up
Down
Slightly volatile
Trade and Non Trade Receivables7.9 B7.4 B
Significantly Up
Down
Slightly volatile
Property Plant and Equipment Net9.1 B8.2 B
Significantly Up
Down
Slightly volatile
Operating Income2.4 B2.4 B
Fairly Up
Down
Slightly volatile
Net Cash Flow from Operations12.2 B10.4 B
Fairly Up
Down
Slightly volatile
Liabilities Non Current80.4 B73.7 B
Significantly Up
Up
Slightly volatile
Current Liabilities32.4 B31.5 B
Fairly Up
Down
Slightly volatile
Total Liabilities118.7 B105.2 B
Moderately Up
Up
Slightly volatile
Investments Non Current9.2 B7.4 B
Fairly Up
Down
Slightly volatile
Investments Current11.1 B7.7 B
Way Up
Down
Slightly volatile
Investments20.4 B15.1 B
Significantly Up
Down
Slightly volatile
Gross Margin0.580.54
Notably Up
Up
Slightly volatile
Depreciation Amortization and Accretion5.4 B4.8 B
Moderately Up
Up
Slightly volatile
Debt Non Current48.9 B48.4 B
Fairly Up
Up
Slightly volatile
Debt Current7.4 B5.6 B
Significantly Up
Down
Pretty Stable
Total Debt56.4 B54 B
Sufficiently Up
Up
Slightly volatile
Assets Non Current101 B98.1 B
Fairly Up
Up
Slightly volatile
Current Assets33.3 B29.1 B
Fairly Up
Down
Slightly volatile
Total Assets141 B127.2 B
Significantly Up
Up
Slightly volatile

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

Operating Expenses

31.05 Billion

International Business Operating Expenses is very stable at the moment as compared to the past year. International Business reported last year Operating Expenses of 30.32 Billion

International Business 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 International Business. 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)
Revenues79.59 B57.71 B55.18 B57.35 B60.53 B64.21 B
Total Assets123.38 B152.19 B155.97 B132 B127.24 B141.01 B
Current Assets49.15 B38.42 B39.16 B29.54 B29.12 B33.3 B
Assets Non Current74.24 B113.77 B116.81 B102.46 B98.12 B100.97 B
Total Liabilities106.45 B131.2 B135.24 B113 B105.22 B118.68 B
Current Liabilities38.23 B37.7 B39.87 B33.62 B31.5 B32.36 B
Total Debt45.81 B68.16 B65.09 B55.14 B54.01 B56.36 B
Debt Current10.21 B10.18 B8.15 B7.76 B5.63 B7.42 B
Debt Non Current35.6 B57.98 B56.94 B47.38 B48.38 B48.94 B
Operating Income12.06 B8.55 B3.86 B5.99 B2.37 B2.43 B
Investments34.54 B25.67 B20.38 B15.07 B15.13 B20.37 B
Investments Current23.01 B14.89 B11.11 B7.82 B7.7 B11.13 B
Gross Margin0.470.460.550.560.540.58

International Business ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, International Business' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to International Business' managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About International Business Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze International Business Machines's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of International Business using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of International Business Machines 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.
International Business Machines Corporation provides integrated solutions and services worldwide. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York. International Business operates under Information Technology Services classification in the United States and is traded on New York Stock Exchange. It employs 282100 people.

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Check out International Business Piotroski F Score and International Business Altman Z Score analysis. To learn how to invest in International Stock please use our How to Invest in International Business guide. Note that the International Business information on this page should be used as a complementary analysis to other International Business' 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.

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When running International Business price analysis, check to measure International Business' 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 International Business is operating at the current time. Most of International Business' value examination focuses on studying past and present price action to predict the probability of International Business' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move International Business' price. Additionally, you may evaluate how the addition of International Business to your portfolios can decrease your overall portfolio volatility.
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Is International Business' 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 International Business. If investors know International 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 International Business 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
0.151
Dividend Share
6.59
Earnings Share
6.089
Revenue Per Share
67.057
Return On Assets
0.0365
The market value of International Business is measured differently than its book value, which is the value of International that is recorded on the company's balance sheet. Investors also form their own opinion of International Business' value that differs from its market value or its book value, called intrinsic value, which is International Business' 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 International Business' market value can be influenced by many factors that don't directly affect International Business' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
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Please note, there is a significant difference between International Business' value and its price as these two are different measures arrived at by different means. Investors typically determine International Business value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, International Business' 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.


 
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