Wipro Limited Adr Stock Beneish M Score

WIT Stock  USD 5.74  0.04  0.70%   
This module uses fundamental data of Wipro Limited to approximate the value of its Beneish M Score. Wipro Limited 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 Wipro Limited Piotroski F Score and Wipro Limited Altman Z Score analysis.
  
At this time, Wipro Limited's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 100 B in 2024, whereas Debt Equity Ratio is likely to drop 0.14 in 2024. At this time, Wipro Limited's Payables Turnover is comparatively stable compared to the past year. Operating Profit Margin is likely to gain to 0.21 in 2024, whereas Price Book Value Ratio is likely to drop 2.82 in 2024.
At this time, it appears that Wipro Limited ADR is an unlikely manipulator. The earnings manipulation may begin if Wipro Limited'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 Wipro Limited 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 Wipro Limited'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.
-2.36
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

0.99

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.13

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Wipro Limited 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 Wipro Limited'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 Receivables259.6 B247.2 B
Sufficiently Up
Slightly volatile
Total Revenue1.1 TT
Sufficiently Up
Slightly volatile
Total Assets1.4 T1.4 T
Sufficiently Up
Slightly volatile
Total Current Assets798.3 B760.3 B
Sufficiently Up
Slightly volatile
Non Current Assets Total621.5 B591.9 B
Sufficiently Up
Slightly volatile
Property Plant Equipment129.6 B123.5 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization14.4 B15.7 B
Significantly Down
Slightly volatile
Selling General Administrative71.4 B68 B
Sufficiently Up
Slightly volatile
Total Current Liabilities323.3 B307.9 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total152.5 B145.3 B
Sufficiently Up
Slightly volatile
Short Term Debt117.7 B112.1 B
Sufficiently Up
Slightly volatile
Long Term Debt74 B70.5 B
Sufficiently Up
Slightly volatile
Operating Income168.6 B160.5 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities157.7 B150.2 B
Sufficiently Up
Slightly volatile
Short Term Investments384.4 B366.1 B
Sufficiently Up
Slightly volatile
Gross Profit Margin0.350.33
Notably Up
Very volatile

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

About Wipro Limited 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.

Other Operating Expenses

929.46 Billion

At this time, Wipro Limited's Other Operating Expenses is comparatively stable compared to the past year.

Wipro Limited 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 Wipro Limited. 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 Receivables164.3B153.9B215.1B215.0B247.2B259.6B
Total Revenue610.2B619.4B790.9B904.9B1.0T1.1T
Total Assets817.1B831.4B1.1T1.2T1.4T1.4T
Total Current Assets519.9B523.2B620.8B661.1B760.3B798.3B
Net Debt(47.3B)(65.3B)72.1B82.8B95.2B100.0B
Short Term Debt79.8B83.5B104.3B97.4B112.1B117.7B
Long Term Debt4.8B7.5B56.5B61.3B70.5B74.0B
Operating Income105.7B123.1B140.3B139.6B160.5B168.6B
Investments34.6B16.8B(60.1B)(84.1B)(75.7B)(71.9B)

About Wipro Limited Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Wipro Limited ADR's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Wipro Limited using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Wipro Limited ADR 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.
Wipro Limited operates as information technology , consulting, and business process services company worldwide. The company was incorporated in 1945 and is based in Bengaluru, India. Wipro operates under Information Technology Services classification in the United States and is traded on New York Stock Exchange. It employs 259179 people.

Wipro Limited Investors Sentiment

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

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Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
When determining whether Wipro Limited ADR 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 Wipro 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 Wipro Limited Adr Stock. Highlighted below are key reports to facilitate an investment decision about Wipro Limited Adr Stock:
Check out Wipro Limited Piotroski F Score and Wipro Limited Altman Z Score analysis.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.

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When running Wipro Limited's price analysis, check to measure Wipro Limited'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 Wipro Limited is operating at the current time. Most of Wipro Limited's value examination focuses on studying past and present price action to predict the probability of Wipro Limited's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Wipro Limited's price. Additionally, you may evaluate how the addition of Wipro Limited to your portfolios can decrease your overall portfolio volatility.
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Is Wipro Limited'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 Wipro Limited. If investors know Wipro 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 Wipro Limited 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
(0.07)
Dividend Share
1
Earnings Share
0.26
Revenue Per Share
169.494
Quarterly Revenue Growth
(0.04)
The market value of Wipro Limited ADR is measured differently than its book value, which is the value of Wipro that is recorded on the company's balance sheet. Investors also form their own opinion of Wipro Limited's value that differs from its market value or its book value, called intrinsic value, which is Wipro Limited'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 Wipro Limited's market value can be influenced by many factors that don't directly affect Wipro Limited'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 Wipro Limited's value and its price as these two are different measures arrived at by different means. Investors typically determine if Wipro Limited is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Wipro Limited'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.