Twitter Beneish M Score

TWTR
 Stock
  

USD 53.70  0.21  0.39%   

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 World Market Map.
  
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 11/26/2022, 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 Current Ratio is relatively stable at the moment as compared to the past year. Twitter reported last year Current Ratio of 5.89. As of 11/26/2022, Debt to Equity Ratio is likely to grow to 0.63, while Receivables Turnover is likely to drop 4.06.
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.
-2.42
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality2.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs0.87Focus
Accruals Factor1.0Focus
Depreciation Resistance0.82Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

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
Selling General and Administrative Expense1.2 B1.1 B
Significantly Up
Increasing
Slightly volatile
Revenues5.5 B5.1 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables631.8 M585.6 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net557.7 M705.5 M
Significantly Down
Increasing
Slightly volatile
Operating Income(505.7 M)(492.7 M)
Fairly Down
Increasing
Stable
Net Cash Flow from Operations550 M632.7 M
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current1.6 B1.5 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities7.3 B6.8 B
Significantly Up
Increasing
Slightly volatile
Investments CurrentB2.5 B
Significantly Down
Increasing
Slightly volatile
InvestmentsB2.5 B
Significantly Down
Increasing
Slightly volatile
Gross Margin56.2864.5984
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion390.5 M362 M
Significantly Up
Increasing
Slightly volatile
Debt Non Current1.6 B1.4 B
Significantly Up
Increasing
Slightly volatile
Debt Current69.2 M72.8 M
Notably Down
Increasing
Slightly volatile
Total Debt1.6 B1.5 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current2.2 BB
Significantly Up
Increasing
Slightly volatile
Current Assets6.3 B7.9 B
Significantly Down
Increasing
Slightly volatile
Total Assets15.2 B14.1 B
Significantly Up
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 Million

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.
201720182019202020212022 (projected)
Revenues2.44 B3.04 B3.46 B3.72 B5.08 B5.48 B
Total Assets7.41 B10.16 B12.7 B13.38 B14.06 B15.17 B
Current Assets5.32 B7.11 B7.62 B8.64 B7.92 B6.32 B
Total Liabilities2.37 B3.36 B4 B5.41 B6.75 B7.29 B
Current Liabilities583.28 M1.52 B832.48 M1.95 B1.34 B1.45 B
Operating Income38.74 M453.32 M366.37 M26.66 M(492.74 M)(505.71 M)
Gross Margin64.7568.2867.1363.2364.656.28

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. Twitter, Inc. was founded in 2006 and is based in San Francisco, California. Twitter operates under Internet Content Information classification in the United States and is traded on New York Stock Exchange. It employs 7500 people.

Twitter Implied Volatility

    
  8.6  
Twitter's implied volatility exposes the market's sentiment of Twitter stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Twitter'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 Twitter stock will not fluctuate a lot when Twitter'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 Twitter 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, Twitter's short interest history, or implied volatility extrapolated from Twitter options trading.

Currently Active Assets on Macroaxis

Additionally, take a look at World Market Map. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Tools for Twitter Stock

When running Twitter price analysis, check to measure Twitter'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 Twitter is operating at the current time. Most of Twitter's value examination focuses on studying past and present price action to predict the probability of Twitter's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Twitter's price. Additionally, you may evaluate how the addition of Twitter to your portfolios can decrease your overall portfolio volatility.
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