Mastercard Beneish M Score

MA
 Stock
  

USD 318.24  2.76  0.87%   

This module uses fundamental data of Mastercard to approximate the value of its Beneish M Score. Mastercard 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. Additionally, see Mastercard Piotroski F Score and Mastercard Altman Z Score analysis.
  
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Mastercard Issuance Repayment of Debt Securities is projected to based on the last few years of reporting. The past year's Issuance Repayment of Debt Securities was at 1.37 Billion. The current year Long Term Debt to Equity is expected to grow to 1.93, whereas Total Debt is forecasted to decline to about 11.4 B. Mastercard Interest Coverage is projected to decrease significantly based on the last few years of reporting. The past year's Interest Coverage was at 23.39. The current year Long Term Debt to Equity is expected to grow to 1.93, whereas Accounts Payable Turnover is forecasted to decline to 25.59.
At this time, it appears that Mastercard is an unlikely manipulator. The earnings manipulation may begin if Mastercard'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 Mastercard 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 Mastercard'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.
-2.54
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.96Focus
Asset Quality0.86Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.0Focus
Depreciation Resistance0.98Focus
Net Sales Growth0.89Focus
Financial Leverage Condition0.96Focus

Mastercard 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 Mastercard'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
Revenues16.8 B18.9 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense7.1 BB
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations8.1 B9.5 B
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion617.2 M726 M
Fairly Down
Increasing
Slightly volatile
Total Assets32.2 B37.7 B
Fairly Down
Increasing
Slightly volatile
Investments485.4 M473 M
Fairly Up
Decreasing
Slightly volatile
Investments Current485.4 M473 M
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net1.6 B1.9 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables2.6 BB
Fairly Down
Increasing
Slightly volatile
Total Liabilities24.6 B30.3 B
Significantly Down
Increasing
Slightly volatile
Current Assets16.6 B16.9 B
Fairly Down
Increasing
Slightly volatile
Assets Non Current22.4 B20.7 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities11.8 B13.2 B
Moderately Down
Increasing
Slightly volatile
Liabilities Non Current18.4 B17.1 B
Significantly Up
Increasing
Slightly volatile
Total Debt11.4 B13.9 B
Significantly Down
Increasing
Slightly volatile
Debt Current791.4 M792 M
Slightly Down
Increasing
Slightly volatile
Debt Non Current10.9 B13.1 B
Significantly Down
Increasing
Slightly volatile
Operating Income8.9 B10.1 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Mastercard 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.

Revenues

16.82 Billion

Share
Mastercard Revenues is projected to increase significantly based on the last few years of reporting. The past year's Revenues was at 18.88 Billion

Mastercard 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 Mastercard. 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)
Revenues12.5 B14.95 B16.88 B15.3 B18.88 B16.82 B
Total Assets21.33 B24.86 B29.24 B33.58 B37.67 B32.16 B
Current Assets13.8 B16.17 B16.9 B19.11 B16.95 B16.61 B
Assets Non Current7.53 B8.69 B12.33 B14.47 B20.72 B22.36 B
Total Liabilities15.76 B19.37 B23.25 B27.07 B30.26 B24.58 B
Current Liabilities8.79 B11.59 B11.9 B11.85 B13.16 B11.78 B
Total Debt5.42 B6.33 B8.53 B12.67 B13.9 B11.43 B
Debt Non Current5.42 B5.83 B8.53 B12.02 B13.11 B10.87 B
Operating Income6.62 B7.28 B9.66 B8.08 B10.08 B8.93 B
Investments1.85 B1.7 B688 M483 M473 M485.45 M
Investments Current1.85 B1.7 B688 M483 M473 M485.45 M

About Mastercard Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Mastercard's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Mastercard using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Mastercard 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.
Mastercard Incorporated, a technology company, provides transaction processing and other payment-related products and services in the United States and internationally. Mastercard Incorporated was founded in 1966 and is headquartered in Purchase, New York. Mastercard operates under Credit Services classification in the United States and is traded on New York Stock Exchange. It employs 24000 people.

Mastercard Investors Sentiment

The influence of Mastercard'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 Mastercard. 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 markets does not have a solid backing from leading economists and market statisticians.

Mastercard Implied Volatility

    
  38.37  
Mastercard's implied volatility exposes the market's sentiment of Mastercard stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Mastercard'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 Mastercard stock will not fluctuate a lot when Mastercard'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 Mastercard 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, Mastercard's short interest history, or implied volatility extrapolated from Mastercard options trading.

Current Sentiment - MA

Mastercard Investor Sentiment

Nearly all of Macroaxis users are now bullish on Mastercard. What is your trading attitude regarding investing in Mastercard? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Mastercard 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.

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Additionally, see Mastercard Piotroski F Score and Mastercard Altman Z Score analysis. Note that the Mastercard information on this page should be used as a complementary analysis to other Mastercard'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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.

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When running Mastercard price analysis, check to measure Mastercard'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 Mastercard is operating at the current time. Most of Mastercard's value examination focuses on studying past and present price action to predict the probability of Mastercard's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Mastercard's price. Additionally, you may evaluate how the addition of Mastercard to your portfolios can decrease your overall portfolio volatility.
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Is Mastercard'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 Mastercard. If investors know Mastercard 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 Mastercard 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 YOY
0.46
Market Capitalization
309.5 B
Quarterly Revenue Growth YOY
0.24
Return On Assets
0.19
Return On Equity
1.4
The market value of Mastercard is measured differently than its book value, which is the value of Mastercard that is recorded on the company's balance sheet. Investors also form their own opinion of Mastercard's value that differs from its market value or its book value, called intrinsic value, which is Mastercard'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 Mastercard's market value can be influenced by many factors that don't directly affect Mastercard'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 Mastercard's value and its price as these two are different measures arrived at by different means. Investors typically determine Mastercard value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mastercard'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.