TWTR Beneish M Score

TWTR -  USA Stock  

USD 60.85  0.21  0.35%

This module uses fundamental data of Twitter to approximate the value of its Beneish M Score. Twitter 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, take a look at Twitter Piotroski F Score and Twitter Altman Z Score analysis.

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Twitter Total Debt is relatively stable at the moment as compared to the past year. Twitter reported last year Total Debt of 1.52 Billion. As of 06/19/2021, Debt Non Current is likely to grow to about 1.6 B, while Debt Current is likely to drop slightly above 69.2 M. Twitter Net Current Assets as percentage of Total Assets are relatively stable at the moment as compared to the past year. Twitter reported last year Net Current Assets as percentage of Total Assets of 49.96. As of 06/19/2021, Asset Turnover is likely to grow to 0.34, while PPandE Turnover is likely to drop 2.86.
At this time, it appears that Twitter is an unlikely manipulator. The earnings manipulation may begin if Twitter'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 Twitter 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 Twitter'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.
-2.61
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
1.0
Asset Quality
1.56
Expense Coverage
1.0
Gross Margin Strengs
0.87
Accruals Factor
1.0
Depreciation Resistance
0.82
Net Sales Growth
1.08
Financial Leverage Condition
1.0

Twitter 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 Twitter'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
RevenuesB3.7 B
Significantly Up
Increasing
Slightly volatile
Selling General and Administrative Expense1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations1.1 B992.9 M
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion390.5 M362 M
Significantly Up
Increasing
Slightly volatile
Total Assets14.4 B13.4 B
Significantly Up
Increasing
Slightly volatile
InvestmentsB2.5 B
Significantly Down
Increasing
Slightly volatile
Investments CurrentB2.5 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net557.7 M705.5 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables631.8 M585.6 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities5.8 B5.4 B
Significantly Up
Increasing
Slightly volatile
Current Assets9.3 B8.6 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current2.2 BB
Significantly Up
Increasing
Slightly volatile
Current Liabilities2.1 BB
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current1.6 B1.5 B
Significantly Up
Increasing
Slightly volatile
Total Debt1.6 B1.5 B
Significantly Up
Increasing
Slightly volatile
Debt Current69.2 M72.8 M
Notably Down
Increasing
Slightly volatile
Debt Non Current1.6 B1.4 B
Significantly Up
Increasing
Slightly volatile
Operating Income28.8 M26.7 M
Significantly Up
Increasing
Slightly volatile
Gross Margin55.1163.2331
Fairly Down
Increasing
Slightly volatile

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

About Twitter 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

390.53 MillionShare
Twitter Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. Twitter reported last year Depreciation Amortization and Accretion of 361.95 Million

Twitter 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 Twitter. 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.
201620172018201920202021 (projected)
Revenues2.53 B2.44 B3.04 B3.46 B3.72 B4.01 B
Total Assets6.87 B7.41 B10.16 B12.7 B13.38 B14.44 B
Current Assets4.65 B5.32 B7.11 B7.62 B8.64 B9.32 B
Total Liabilities2.27 B2.37 B3.36 B4 B5.41 B5.84 B
Current Liabilities584.02 M583.28 M1.52 B832.48 M1.95 B2.11 B
Operating Income(367.21 M)38.74 M453.32 M366.37 M26.66 M28.76 M
Gross Margin63.1564.7568.2867.1363.2355.11

About Twitter Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Twitter's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Twitter using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Twitter 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.
Twitter, Inc. operates as a platform for public self-expression and conversation in real time United States, Japan, and internationally. The company offers Twitter, a platform that allows users to consume, create, distribute, and discover content. It also provides promoted products and services, such as promoted tweets, promoted accounts, and promoted trends, which enable its advertisers to promote their brands, products, and services. In addition, the company offers MoPub, a mobile-focused advertising exchange that combines ad serving, ad network mediation, and a real-time bidding exchange into one monetization platform Twitter Audience platform, an advertising offering that enables advertisers to extend advertising campaigns Developer and Enterprise solutions, a software-as-a-service platform that enables developers to build products on Twitter and paid enterprise access for its public data streams. Twitter, Inc. was founded in 2006 and is headquartered in San Francisco, California.

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Additionally, take a look at Twitter Piotroski F Score and Twitter Altman Z Score analysis. Note that the Twitter information on this page should be used as a complementary analysis to other Twitter'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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.

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The market value of Twitter is measured differently than its book value, which is the value of TWTR that is recorded on the company's balance sheet. Investors also form their own opinion of Twitter's value that differs from its market value or its book value, called intrinsic value, which is Twitter'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 Twitter's market value can be influenced by many factors that don't directly affect Twitter underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Twitter's value and its price as these two are different measures arrived at by different means. Investors typically determine Twitter value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Twitter'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.