Apple Beneish M Score

AAPL
 Stock
  

USD 144.33  2.40  1.69%   

This module uses fundamental data of Apple to approximate the value of its Beneish M Score. Apple 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. Please continue to Apple Piotroski F Score and Apple Altman Z Score analysis.
  
Issuance Repayment of Debt Securities is expected to hike to about 31.3 B this year, although the value of Total Debt will most likely fall to nearly 111 B. Apple Quick Ratio is relatively stable at the moment as compared to the past year. The company's current value of Quick Ratio is estimated at 0.95. Net Current Assets as percentage of Total Assets is expected to hike to 1.13 this year, although the value of Accounts Payable Turnover will most likely fall to 6.25.
At this time, it appears that Apple Inc is an unlikely manipulator. The earnings manipulation may begin if Apple'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 Apple 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 Apple'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.
-2.76
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.27Focus
Asset Quality0.2Focus
Expense Coverage1.3Focus
Gross Margin Strengs0.99Focus
Accruals Factor1.3Focus
Depreciation Resistance0.97Focus
Net Sales Growth0.83Focus
Financial Leverage Condition0.87Focus

Apple 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 Apple'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 Expense16.5 B15.3 B
Significantly Up
Increasing
Slightly volatile
Revenues328.2 B394.3 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables37.6 B35.7 B
Notably Up
Increasing
Slightly volatile
Property Plant and Equipment Net33.5 B33.8 B
Slightly Down
Increasing
Slightly volatile
Operating Income95.1 B119.4 B
Significantly Down
Increasing
Slightly volatile
Net Cash Flow from Operations97.8 B122.2 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current130.4 B140.5 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities134.1 B154 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities286 B302.1 B
Notably Down
Increasing
Slightly volatile
Investments Non Current177.1 B194.7 B
Significantly Down
Increasing
Stable
Investments Current47.6 B53.9 B
Fairly Down
Increasing
Very volatile
Investments224.7 B248.6 B
Moderately Down
Increasing
Stable
Gross Margin43.0443.3096
Slightly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion10.5 B10.2 B
Sufficiently Up
Increasing
Slightly volatile
Debt Non Current94 B97.2 B
Sufficiently Down
Increasing
Slightly volatile
Debt Current18 B18.5 B
Fairly Down
Increasing
Slightly volatile
Total Debt111 B115.7 B
Sufficiently Down
Increasing
Slightly volatile
Assets Non Current232.8 B246.7 B
Notably Down
Increasing
Slightly volatile
Current Assets139 B135.4 B
Fairly Up
Increasing
Slightly volatile
Total Assets383.2 B352.8 B
Significantly Up
Increasing
Slightly volatile

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

About Apple 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

10.48 Billion

Apple Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 10.48 Billion

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

About Apple Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Apple Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Apple using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Apple 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.
Apple Inc. designs, manufactures, and markets smartphones, personal computers, tablets, wearables, and accessories worldwide. Apple Inc. was incorporated in 1977 and is headquartered in Cupertino, California. Apple operates under Consumer Electronics classification in the United States and is traded on NASDAQ Exchange. It employs 164000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Apple without increasing your portfolio risk or giving up the expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with Apple

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Apple position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Apple will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Apple could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Apple when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Apple - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Apple Inc to buy it.
The correlation of Apple is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Apple moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Apple Inc moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Apple can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Please continue to Apple Piotroski F Score and Apple Altman Z Score analysis. You can also try Price Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

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When running Apple Inc price analysis, check to measure Apple'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 Apple is operating at the current time. Most of Apple's value examination focuses on studying past and present price action to predict the probability of Apple's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Apple's price. Additionally, you may evaluate how the addition of Apple to your portfolios can decrease your overall portfolio volatility.
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Is Apple'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 Apple. If investors know Apple 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 Apple 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 YOY
0.048
Market Capitalization
2269.3 B
Quarterly Revenue Growth YOY
0.081
Return On Assets
0.2121
Return On Equity
1.7546
The market value of Apple Inc is measured differently than its book value, which is the value of Apple that is recorded on the company's balance sheet. Investors also form their own opinion of Apple's value that differs from its market value or its book value, called intrinsic value, which is Apple'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 Apple's market value can be influenced by many factors that don't directly affect Apple'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 Apple's value and its price as these two are different measures arrived at by different means. Investors typically determine Apple value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Apple'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.