Microsoft Stock Beneish M Score

MSFT Stock  USD 417.32  0.90  0.22%   
This module uses fundamental data of Microsoft to approximate the value of its Beneish M Score. Microsoft 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 Microsoft Piotroski F Score and Microsoft Altman Z Score analysis.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.
  
At this time, Microsoft's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 30.5 B in 2024, whereas Long Term Debt Total is likely to drop slightly above 44 B in 2024. At this time, Microsoft's Cash Per Share is comparatively stable compared to the past year. Return On Capital Employed is likely to gain to 0.36 in 2024, whereas Price To Sales Ratio is likely to drop 8.81 in 2024.
At this time, it appears that Microsoft is an unlikely manipulator. The earnings manipulation may begin if Microsoft'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 Microsoft 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 Microsoft'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.
-2.31
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

0.98

Focus
Expense Coverage

0.57

Focus
Gross Margin Strengs

1.1

Focus
Accruals Factor

0.57

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Microsoft 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 Microsoft'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 Receivables58.8 B56 B
Sufficiently Up
Slightly volatile
Total Revenue255.9 B243.7 B
Sufficiently Up
Slightly volatile
Total Assets497.5 B473.8 B
Sufficiently Up
Slightly volatile
Total Current Assets222.5 B211.9 B
Sufficiently Up
Slightly volatile
Non Current Assets Total275 B261.9 B
Sufficiently Up
Slightly volatile
Property Plant Equipment132.8 B126.5 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization16.3 B15.5 B
Sufficiently Up
Slightly volatile
Selling General Administrative5.2 B8.7 B
Way Down
Slightly volatile
Total Current Liabilities125.8 B119.8 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total122.7 B116.8 B
Sufficiently Up
Slightly volatile
Short Term Debt3.7 BB
Way Down
Pretty Stable
Long Term Debt37.6 B48.3 B
Significantly Down
Slightly volatile
Operating Income106.9 B101.8 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities105.8 B100.7 B
Sufficiently Up
Slightly volatile
Short Term Investments68.3 B88 B
Significantly Down
Slightly volatile
Long Term Investments6.4 B8.9 B
Way Down
Slightly volatile
Gross Profit Margin0.870.79
Significantly Up
Very volatile

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

About Microsoft 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 And Amortization

16.3 Billion

At this time, Microsoft's Depreciation And Amortization is comparatively stable compared to the past year.

Microsoft 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 Microsoft. 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 Receivables32.0B38.0B44.3B48.7B56.0B58.8B
Total Revenue143.0B168.1B198.3B211.9B243.7B255.9B
Total Assets301.3B333.8B364.8B412.0B473.8B497.5B
Total Current Assets181.9B184.4B169.7B184.3B211.9B222.5B
Net Debt57.4B53.6B47.3B25.3B29.1B30.5B
Short Term Debt3.7B8.1B2.7B5.2B6.0B3.7B
Long Term Debt59.6B50.1B47.0B42.0B48.3B37.6B
Operating Income53.0B69.9B83.4B88.5B101.8B106.9B
Investments(10.7B)2.9B18.4B(22.7B)(26.1B)(24.8B)

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

About Microsoft Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Microsoft's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microsoft using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microsoft 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.
Microsoft Corporation develops, licenses, and supports software, services, devices, and solutions worldwide. Microsoft Corporation was founded in 1975 and is headquartered in Redmond, Washington. Microsoft Corp operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 221000 people.

Microsoft Investors Sentiment

The influence of Microsoft'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 Microsoft. 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 Microsoft's public news can be used to forecast risks associated with an investment in Microsoft. The trend in average sentiment can be used to explain how an investor holding Microsoft can time the market purely based on public headlines and social activities around Microsoft. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Microsoft'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 Microsoft'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 Microsoft's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Microsoft.

Microsoft Implied Volatility

    
  35.08  
Microsoft's implied volatility exposes the market's sentiment of Microsoft stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Microsoft'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 Microsoft stock will not fluctuate a lot when Microsoft'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 Microsoft 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, Microsoft's short interest history, or implied volatility extrapolated from Microsoft options trading.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect
When determining whether Microsoft 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 Microsoft 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 Microsoft Stock. Highlighted below are key reports to facilitate an investment decision about Microsoft Stock:
Check out Microsoft Piotroski F Score and Microsoft Altman Z Score analysis.
For more information on how to buy Microsoft Stock please use our How to Invest in Microsoft guide.
Note that the Microsoft information on this page should be used as a complementary analysis to other Microsoft'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 the Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.

Complementary Tools for Microsoft Stock analysis

When running Microsoft's price analysis, check to measure Microsoft'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 Microsoft is operating at the current time. Most of Microsoft's value examination focuses on studying past and present price action to predict the probability of Microsoft's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microsoft's price. Additionally, you may evaluate how the addition of Microsoft to your portfolios can decrease your overall portfolio volatility.
AI Investment Finder
Use AI to screen and filter profitable investment opportunities
Balance Of Power
Check stock momentum by analyzing Balance Of Power indicator and other technical ratios
Portfolio Analyzer
Portfolio analysis module that provides access to portfolio diagnostics and optimization engine
Funds Screener
Find actively-traded funds from around the world traded on over 30 global exchanges
Economic Indicators
Top statistical indicators that provide insights into how an economy is performing
Bonds Directory
Find actively traded corporate debentures issued by US companies
Is Microsoft'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 Microsoft. If investors know Microsoft 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 Microsoft 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
0.332
Dividend Share
2.86
Earnings Share
11.08
Revenue Per Share
30.612
Quarterly Revenue Growth
0.176
The market value of Microsoft is measured differently than its book value, which is the value of Microsoft that is recorded on the company's balance sheet. Investors also form their own opinion of Microsoft's value that differs from its market value or its book value, called intrinsic value, which is Microsoft'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 Microsoft's market value can be influenced by many factors that don't directly affect Microsoft'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 Microsoft's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microsoft is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microsoft'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.