Jpmorgan Chase Co Stock Beneish M Score

JPM Stock  USD 192.66  2.36  1.24%   
This module uses fundamental data of JPMorgan Chase to approximate the value of its Beneish M Score. JPMorgan Chase 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 JPMorgan Chase Piotroski F Score and JPMorgan Chase Altman Z Score analysis.
  
At this time, JPMorgan Chase's Long Term Debt Total is very stable compared to the past year. As of the 19th of March 2024, Total Debt To Capitalization is likely to grow to 0.70, though Net Debt is likely to grow to (178.2 B). At this time, JPMorgan Chase's Effective Tax Rate is very stable compared to the past year. As of the 19th of March 2024, Company Equity Multiplier is likely to grow to 15.05, while Price Earnings Ratio is likely to drop 9.63.
At this time, it appears that JPMorgan Chase is an unlikely manipulator. The earnings manipulation may begin if JPMorgan Chase'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 JPMorgan Chase 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 JPMorgan Chase'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.
-3.05
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.71

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.72

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

0.9

Focus

JPMorgan Chase 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 JPMorgan Chase'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 Receivables80.3 B107.4 B
Way Down
Pretty Stable
Total Revenue162.7 B155 B
Sufficiently Up
Slightly volatile
Total Assets4.1 T3.9 T
Sufficiently Up
Slightly volatile
Total Current Assets314.6 B305.2 B
Fairly Up
Slightly volatile
Non Current Assets Total89.8 B94.5 B
Notably Down
Slightly volatile
Property Plant Equipment33.5 B31.9 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization4.2 B7.5 B
Way Down
Slightly volatile
Selling General Administrative48.8 B46.5 B
Sufficiently Up
Slightly volatile
Total Current Liabilities42.5 B44.7 B
Notably Down
Slightly volatile
Non Current Liabilities Total682.7 B414.8 B
Way Up
Very volatile
Short Term Debt33.9 B44.7 B
Way Down
Very volatile
Long Term Debt232 B391.8 B
Way Down
Pretty Stable
Operating Income64.7 B61.6 B
Sufficiently Up
Slightly volatile
Short Term Investments262 B192.5 B
Significantly Up
Very volatile
Long Term Investments814.4 B973.9 B
Fairly Down
Slightly volatile

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

About JPMorgan Chase 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

91.53 Billion

At this time, JPMorgan Chase's Other Operating Expenses is very stable compared to the past year.

JPMorgan Chase 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 JPMorgan Chase. 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 Receivables122.6B170.1B159.7B196.1B107.4B80.3B
Total Revenue115.7B119.9B121.7B128.6B155.0B162.7B
Total Assets2.7T3.4T3.7T3.7T3.9T4.1T
Total Current Assets747.6B1.1T1.2T969.2B305.2B314.6B
Net Debt144.4B(101.2B)(271.7B)(100.5B)(187.6B)(178.2B)
Short Term Debt40.9B45.2B53.6B44.0B44.7B33.9B
Long Term Debt137.1B187.8B301.0B190.6B391.8B232.0B
Operating Income45.1B36.9B60.0B46.4B61.6B64.7B
Investments4.7B(204.3B)(26.5B)3.1B67.6B71.0B

JPMorgan Chase 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, JPMorgan Chase's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to JPMorgan Chase's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About JPMorgan Chase Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze JPMorgan Chase Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of JPMorgan Chase using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of JPMorgan Chase Co 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.
JPMorgan Chase Co. operates as a financial services company worldwide. JPMorgan Chase Co. was founded in 1799 and is headquartered in New York, New York. JP Morgan operates under BanksDiversified classification in the United States and is traded on New York Stock Exchange. It employs 288474 people.

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When determining whether JPMorgan Chase is a strong investment it is important to analyze JPMorgan Chase's 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 JPMorgan Chase's future performance. For an informed investment choice regarding JPMorgan Stock, refer to the following important reports:

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Is JPMorgan Chase'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 JPMorgan Chase. If investors know JPMorgan 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 JPMorgan Chase 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
(0.15)
Dividend Share
4.1
Earnings Share
16.22
Revenue Per Share
49.687
Quarterly Revenue Growth
0.111
The market value of JPMorgan Chase is measured differently than its book value, which is the value of JPMorgan that is recorded on the company's balance sheet. Investors also form their own opinion of JPMorgan Chase's value that differs from its market value or its book value, called intrinsic value, which is JPMorgan Chase'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 JPMorgan Chase's market value can be influenced by many factors that don't directly affect JPMorgan Chase'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 JPMorgan Chase's value and its price as these two are different measures arrived at by different means. Investors typically determine if JPMorgan Chase is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JPMorgan Chase'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.