NetApp Beneish M Score

Stocks . USA . 
Stock . NetApp Inc
NTAP Stock  USD 61.06  0.47  0.76%   
This module uses fundamental data of NetApp to approximate the value of its Beneish M Score. NetApp 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 NetApp Piotroski F Score and NetApp Altman Z Score analysis. To learn how to invest in NetApp Stock please use our How to Invest in NetApp guide.
  
NetApp Debt Current is relatively stable at the moment as compared to the past year. NetApp reported last year Debt Current of 225 Million. As of 03/26/2023, Issuance Repayment of Debt Securities is likely to grow to about 1.2 B, while Debt to Equity Ratio is likely to drop 10.60. NetApp Return on Investment is relatively stable at the moment as compared to the past year. NetApp reported last year Return on Investment of 37.19. As of 03/26/2023, Quick Ratio is likely to grow to 1.84, while Operating Margin is likely to drop 13.69.
At this time, it appears that NetApp Inc is an unlikely manipulator. The earnings manipulation may begin if NetApp'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 NetApp 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 NetApp'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.
-2.48
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.14Focus
Asset Quality0.9Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.07Focus
Accruals Factor1.0Focus
Depreciation Resistance1.18Focus
Net Sales Growth0.96Focus
Financial Leverage Condition1.03Focus

NetApp 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 NetApp'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
Selling General and Administrative Expense1.9 B2 B
Sufficiently Down
Down
Slightly volatile
Revenues5.5 B5.7 B
Sufficiently Down
Down
Pretty Stable
Trade and Non Trade Receivables1 B945 M
Significantly Up
Up
Slightly volatile
Property Plant and Equipment Net641.9 M525 M
Fairly Up
Down
Slightly volatile
Operating Income1 B1 B
Slightly Up
Up
Slightly volatile
Net Cash Flow from Operations1.2 B1.3 B
Significantly Down
Down
Pretty Stable
Liabilities Non Current4.8 B5.2 B
Significantly Down
Up
Slightly volatile
Current Liabilities3.9 B3.5 B
Moderately Up
Up
Slightly volatile
Total Liabilities8.6 B8.7 B
Slightly Down
Up
Slightly volatile
Investments Current68.8 M67 M
Fairly Up
Down
Slightly volatile
Investments68.8 M67 M
Fairly Up
Down
Slightly volatile
Gross Margin0.710.664
Notably Up
Up
Slightly volatile
Depreciation Amortization and Accretion248.5 M259 M
Sufficiently Down
Down
Slightly volatile
Debt Non Current2.2 B2.6 B
Significantly Down
Up
Slightly volatile
Debt Current230.9 M225 M
Fairly Up
Down
Slightly volatile
Total Debt2.5 B2.6 B
Notably Down
Up
Slightly volatile
Assets Non Current3.6 B3.4 B
Notably Up
Up
Slightly volatile
Current Assets5.8 B6 B
Fairly Down
Down
Slightly volatile
Total Assets8.9 B9.4 B
Sufficiently Down
Down
Very volatile

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

About NetApp 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

248.5 Million

NetApp Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. NetApp reported last year Depreciation Amortization and Accretion of 259 Million

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

About NetApp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze NetApp Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of NetApp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of NetApp Inc 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.
NetApp, Inc. provides cloud-led and data-centric services to manage and share data on-premises, and private and public clouds worldwide. NetApp, Inc. was incorporated in 1992 and is headquartered in San Jose, California. NetApp operates under Computer Hardware classification in the United States and is traded on NASDAQ Exchange. It employs 12000 people.

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Check out NetApp Piotroski F Score and NetApp Altman Z Score analysis. To learn how to invest in NetApp Stock please use our How to Invest in NetApp guide. Note that the NetApp Inc information on this page should be used as a complementary analysis to other NetApp'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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..

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Is NetApp'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 NetApp. If investors know NetApp 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 NetApp 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
(0.73) 
Dividend Share
2
Earnings Share
5.75
Revenue Per Share
29.469
Quarterly Revenue Growth
(0.06) 
The market value of NetApp Inc is measured differently than its book value, which is the value of NetApp that is recorded on the company's balance sheet. Investors also form their own opinion of NetApp's value that differs from its market value or its book value, called intrinsic value, which is NetApp'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 NetApp's market value can be influenced by many factors that don't directly affect NetApp's 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 NetApp's value and its price as these two are different measures arrived at by different means. Investors typically determine NetApp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, NetApp'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.


 
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