Alphabet Beneish M Score

GOOGL
 Stock
  

USD 96.98  2.50  2.51%   

This module uses fundamental data of Alphabet Inc to approximate the value of its Beneish M Score. Alphabet Inc 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 check Alphabet Inc Piotroski F Score and Alphabet Inc Altman Z Score analysis.
  
Alphabet Inc Total Debt is relatively stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 28.27 Billion. Debt Non Current is expected to hike to about 28.3 B this year, although the value of Debt Current will most likely fall to nearly 3.3 B. Alphabet Inc Accrued Expenses Turnover is relatively stable at the moment as compared to the past year. The company's current value of Accrued Expenses Turnover is estimated at 12.91. Operating Margin is expected to hike to 31.01 this year, although the value of Inventory Turnover will most likely fall to 96.10.
At this time, it appears that Alphabet Class is an unlikely manipulator. The earnings manipulation may begin if Alphabet Inc'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 Alphabet Inc 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 Alphabet Inc'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.
-2.59
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.0Focus
Asset Quality0.64Focus
Expense Coverage0.77Focus
Gross Margin Strengs1.13Focus
Accruals Factor0.77Focus
Depreciation Resistance1.23Focus
Net Sales Growth1.08Focus
Financial Leverage Condition1.0Focus

Alphabet Inc 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 Alphabet Inc'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 Expense30.2 B36.4 B
Significantly Down
Increasing
Slightly volatile
Revenues278 B257.6 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables42.4 B39.3 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net119.3 B110.6 B
Significantly Up
Increasing
Slightly volatile
Operating Income84.9 B78.7 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations98.9 B91.7 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current46.8 B43.4 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities69.3 B64.3 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities116.1 B107.6 B
Significantly Up
Increasing
Slightly volatile
Investments Non Current31.9 B29.5 B
Significantly Up
Increasing
Slightly volatile
Investments Current104.4 B118.7 B
Fairly Down
Increasing
Slightly volatile
Investments125.4 B148.3 B
Fairly Down
Increasing
Slightly volatile
Gross Margin64.2956.9398
Moderately Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion10.7 B12.4 B
Fairly Down
Increasing
Slightly volatile
Debt Non Current28.3 B26.2 B
Significantly Up
Increasing
Slightly volatile
Debt Current3.3 B3.7 B
Moderately Down
Increasing
Slightly volatile
Total Debt28.3 B26.2 B
Significantly Up
Increasing
Slightly volatile
Assets Non Current135.9 B171.1 B
Significantly Down
Increasing
Slightly volatile
Current Assets203 B188.1 B
Significantly Up
Increasing
Slightly volatile
Total Assets387.6 B359.3 B
Significantly Up
Increasing
Slightly volatile

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

About Alphabet Inc 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

10.7 Billion

Alphabet Inc 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 10.7 Billion

Alphabet Inc 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 Alphabet Inc. 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)
Revenues110.86 B136.82 B161.86 B182.53 B257.64 B277.98 B
Total Assets197.29 B232.79 B275.91 B319.62 B359.27 B387.63 B
Current Assets124.31 B135.68 B152.58 B174.3 B188.14 B203 B
Assets Non Current72.99 B97.12 B123.33 B145.32 B171.12 B135.91 B
Total Liabilities44.79 B55.16 B74.47 B97.07 B107.63 B116.13 B
Current Liabilities24.18 B34.62 B45.22 B56.83 B64.25 B69.33 B
Total Debt3.97 B4.01 B14.77 B25.08 B26.21 B28.27 B
Debt Non Current3.97 B4.01 B14.77 B25.08 B26.21 B28.27 B
Operating Income26.15 B26.32 B34.23 B41.22 B78.71 B84.93 B
Investments98.97 B106.3 B114.25 B130.93 B148.25 B125.44 B
Investments Current91.16 B92.44 B101.18 B110.23 B118.7 B104.45 B

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

About Alphabet Inc Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Alphabet Inc Class's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alphabet Inc using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alphabet Inc Class 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.
Alphabet Inc. provides various products and platforms in the United States, Europe, the Middle East, Africa, the Asia-Pacific, Canada, and Latin America. The company was founded in 1998 and is headquartered in Mountain View, California. Alphabet operates under Internet Content Information classification in the United States and is traded on NASDAQ Exchange. It employs 174014 people.

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Please check Alphabet Inc Piotroski F Score and Alphabet Inc Altman Z Score analysis. Note that the Alphabet Class information on this page should be used as a complementary analysis to other Alphabet Inc'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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.

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When running Alphabet Class price analysis, check to measure Alphabet Inc'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 Alphabet Inc is operating at the current time. Most of Alphabet Inc's value examination focuses on studying past and present price action to predict the probability of Alphabet Inc's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Alphabet Inc's price. Additionally, you may evaluate how the addition of Alphabet Inc to your portfolios can decrease your overall portfolio volatility.
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Is Alphabet Inc'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 Alphabet Inc. If investors know Alphabet 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 Alphabet Inc 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
(0.24) 
Market Capitalization
1289.9 B
Quarterly Revenue Growth YOY
0.061
Return On Assets
0.14
Return On Equity
0.27
The market value of Alphabet Class is measured differently than its book value, which is the value of Alphabet that is recorded on the company's balance sheet. Investors also form their own opinion of Alphabet Inc's value that differs from its market value or its book value, called intrinsic value, which is Alphabet Inc'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 Alphabet Inc's market value can be influenced by many factors that don't directly affect Alphabet Inc'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 Alphabet Inc's value and its price as these two are different measures arrived at by different means. Investors typically determine Alphabet Inc value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Alphabet Inc'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.