Salesforce Beneish M Score

CRM
 Stock
  

USD 130.48  2.79  2.09%   

This module uses fundamental data of Salesforce to approximate the value of its Beneish M Score. Salesforce 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. Continue to Salesforce Piotroski F Score and Salesforce Altman Z Score analysis.
  
Total Debt is expected to hike to about 15.1 B this year. Debt Current is expected to hike to about 761.9 M this year. Salesforce Accounts Payable Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accounts Payable Turnover is estimated at 5.53. Return on Investment is expected to hike to 1.05 this year, although the value of Accrued Expenses Turnover will most likely fall to 7.97.
At this time, it appears that Salesforce is an unlikely manipulator. The earnings manipulation may begin if Salesforce'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 Salesforce 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 Salesforce'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 Receivables1.0Focus
Asset Quality1.0Focus
Expense Coverage1.0Focus
Gross Margin Strengs1.13Focus
Accruals Factor1.0Focus
Depreciation Resistance1.0Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Salesforce 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 Salesforce'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 Expense15.6 B14.5 B
Significantly Up
Increasing
Slightly volatile
Revenues28.6 B26.5 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables10.5 B9.7 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net6.1 B5.7 B
Significantly Up
Increasing
Slightly volatile
Operating Income591.3 M548 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations6.5 BB
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current16.5 B15.3 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities23.5 B21.8 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities40 B37.1 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current5.2 B4.8 B
Significantly Up
Increasing
Slightly volatile
Investments Current5.5 B5.1 B
Significantly Up
Increasing
Slightly volatile
Investments10.6 B9.9 B
Significantly Up
Increasing
Slightly volatile
Gross Margin82.6873.4788
Moderately Up
Decreasing
Stable
Depreciation Amortization and Accretion3.6 B3.3 B
Significantly Up
Increasing
Slightly volatile
Debt Non Current14.3 B13.3 B
Significantly Up
Increasing
Slightly volatile
Debt Current761.9 M690 M
Significantly Up
Increasing
Slightly volatile
Total Debt15.1 B14 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current78.1 B72.4 B
Significantly Up
Increasing
Slightly volatile
Current Assets24.7 B22.9 B
Significantly Up
Increasing
Slightly volatile
Total Assets102.7 B95.2 B
Significantly Up
Increasing
Slightly volatile

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

About Salesforce 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.

Operating Expenses

20.41 Billion

Salesforce Operating Expenses is relatively stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 20.41 Billion

Salesforce 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 Salesforce. 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)
Revenues10.48 B13.28 B17.1 B21.25 B26.49 B28.58 B
Total Assets21.01 B30.74 B55.13 B66.3 B95.21 B102.73 B
Current Assets9.29 B10.68 B15.96 B21.89 B22.85 B24.65 B
Assets Non Current12.4 B20.05 B39.16 B44.41 B72.36 B78.07 B
Total Liabilities11.62 B15.13 B21.24 B24.81 B37.08 B40.01 B
Current Liabilities10.13 B11.26 B14.85 B17.73 B21.79 B23.51 B
Total Debt1.72 B3.17 B5.87 B6.28 B13.98 B15.09 B
Debt Non Current695 M3.17 B5.12 B5.51 B13.29 B14.34 B
Operating Income235.77 M535 M297 M455 M548 M591.26 M
Investments2.65 B2.98 B5.76 B9.68 B9.86 B10.64 B
Investments Current1.98 B1.67 B3.8 B5.77 B5.07 B5.47 B
Gross Margin73.5474.0275.2374.4173.4882.68

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

About Salesforce Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Salesforce's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Salesforce using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Salesforce 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.
Salesforce, Inc. provides customer relationship management technology that brings companies and customers together worldwide. Salesforce, Inc. was incorporated in 1999 and is headquartered in San Francisco, California. Salesforce operates under SoftwareApplication classification in the United States and is traded on New York Stock Exchange. It employs 78634 people.

Salesforce Investors Sentiment

The influence of Salesforce'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 Salesforce. 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 markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Salesforce's public news can be used to forecast risks associated with investment in Salesforce. The trend in average sentiment can be used to explain how an investor holding Salesforce can time the market purely based on public headlines and social activities around Salesforce. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Salesforce'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 Salesforce'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 Salesforce's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Salesforce.

Salesforce Implied Volatility

    
  61.51  
Salesforce's implied volatility exposes the market's sentiment of Salesforce stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Salesforce'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 Salesforce stock will not fluctuate a lot when Salesforce'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 Salesforce 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, Salesforce's short interest history, or implied volatility extrapolated from Salesforce options trading.

Pair Trading with Salesforce

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 Salesforce 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 Salesforce will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Salesforce could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Salesforce 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 Salesforce - 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 Salesforce to buy it.
The correlation of Salesforce 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 Salesforce moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Salesforce 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 Salesforce 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
Continue to Salesforce Piotroski F Score and Salesforce Altman Z Score analysis. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

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When running Salesforce price analysis, check to measure Salesforce'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 Salesforce is operating at the current time. Most of Salesforce's value examination focuses on studying past and present price action to predict the probability of Salesforce's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Salesforce's price. Additionally, you may evaluate how the addition of Salesforce to your portfolios can decrease your overall portfolio volatility.
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Is Salesforce'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 Salesforce. If investors know Salesforce 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 Salesforce 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
(0.55) 
Market Capitalization
143.8 B
Quarterly Revenue Growth YOY
0.142
Return On Assets
0.0035
Return On Equity
0.0048
The market value of Salesforce is measured differently than its book value, which is the value of Salesforce that is recorded on the company's balance sheet. Investors also form their own opinion of Salesforce's value that differs from its market value or its book value, called intrinsic value, which is Salesforce'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 Salesforce's market value can be influenced by many factors that don't directly affect Salesforce'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 Salesforce's value and its price as these two are different measures arrived at by different means. Investors typically determine Salesforce value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Salesforce'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.