Bhp Billiton Beneish M Score

BHP
 Stock
  

USD 54.40  1.27  2.39%   

This module uses fundamental data of Bhp Billiton to approximate the value of its Beneish M Score. Bhp Billiton 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 Bhp Billiton Piotroski F Score and Bhp Billiton Altman Z Score analysis.
  
Bhp Billiton Total Debt is very stable at the moment as compared to the past year. Bhp Billiton reported last year Total Debt of 20.03 Billion. As of 7th of August 2022, Debt Current is likely to grow to about 2.8 B, while Issuance Repayment of Debt Securities is likely to drop (7 B). Bhp Billiton Book Value per Share is very stable at the moment as compared to the past year. Bhp Billiton reported last year Book Value per Share of 18.24. As of 7th of August 2022, Dividends per Basic Common Share is likely to grow to 6.38, while Debt to Equity Ratio is likely to drop 1.19.
At this time, it appears that Bhp Billiton is an unlikely manipulator. The earnings manipulation may begin if Bhp Billiton'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 Bhp Billiton 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 Bhp Billiton'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.
-2.5
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.02Focus
Asset Quality0.3Focus
Expense CoverageN/AFocus
Gross Margin Strengs0.99Focus
Accruals FactorN/AFocus
Depreciation Resistance0.95Focus
Net Sales Growth0.92Focus
Financial Leverage Condition1.02Focus

Bhp Billiton 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 Bhp Billiton'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
Revenues47.1 B51.2 B
Significantly Down
Decreasing
Slightly volatile
Net Cash Flow from Operations21.2 B24.5 B
Fairly Down
Decreasing
Very volatile
Depreciation Amortization and Accretion5.1 B4.6 B
Moderately Up
Decreasing
Slightly volatile
Total Assets102.5 B98 B
Sufficiently Up
Decreasing
Slightly volatile
Investments3.6 B3.2 B
Significantly Up
Decreasing
Very volatile
Investments Current168.2 M207 M
Significantly Down
Decreasing
Stable
Investments Non Current3.4 BB
Moderately Up
Increasing
Very volatile
Property Plant and Equipment Net70.5 B66.4 B
Notably Up
Decreasing
Slightly volatile
Trade and Non Trade Receivables5.4 B5.8 B
Notably Down
Decreasing
Slightly volatile
Total Liabilities49.1 B48 B
Fairly Up
Decreasing
Slightly volatile
Current Assets29.1 B30.7 B
Notably Down
Increasing
Slightly volatile
Assets Non Current80.4 B74 B
Significantly Up
Decreasing
Slightly volatile
Current Liabilities14.3 B14.8 B
Sufficiently Down
Decreasing
Slightly volatile
Liabilities Non Current34.8 B33.2 B
Sufficiently Up
Decreasing
Slightly volatile
Total Debt23.4 B20 B
Fairly Up
Decreasing
Slightly volatile
Debt Current2.8 B2.5 B
Moderately Up
Decreasing
Slightly volatile
Debt Non Current20.6 B17.6 B
Fairly Up
Decreasing
Slightly volatile
Operating Income24.7 B30 B
Significantly Down
Increasing
Stable
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Bhp Billiton 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

28.2 Billion

Bhp Billiton Operating Expenses is very stable at the moment as compared to the past year. Bhp Billiton reported last year Operating Expenses of 27.78 Billion

Bhp Billiton 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 Bhp Billiton. 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)
Revenues43.13 B44.29 B42.93 B56.92 B51.23 B47.06 B
Total Assets111.99 B100.86 B105.73 B108.93 B98.03 B102.46 B
Current Assets35.13 B23.37 B21.47 B26.69 B30.7 B29.1 B
Assets Non Current76.86 B77.49 B84.26 B82.23 B74.01 B80.4 B
Total Liabilities51.32 B49.04 B53.56 B53.32 B47.99 B49.11 B
Current Liabilities13.99 B12.34 B14.82 B16.4 B14.76 B14.27 B
Total Debt28.04 B25.85 B28.69 B22.26 B20.03 B23.39 B
Debt Current2.87 B1.79 B5.24 B2.76 B2.48 B2.81 B
Debt Non Current25.16 B24.06 B23.45 B19.5 B17.55 B20.58 B
Operating Income15.6 B16.27 B14.16 B26.05 B29.96 B24.73 B
Investments3.67 B3.96 B5.19 B3.58 B3.22 B3.56 B

About Bhp Billiton Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Bhp Billiton's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Bhp Billiton using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Bhp Billiton 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.
BHP Group Limited operates as a resources company in Australia, Europe, China, Japan, India, South Korea, rest of Asia, North America, South America, and internationally. The company was founded in 1851 and is headquartered in Melbourne, Australia. Bhp Billiton operates under Other Industrial Metals Mining classification in the United States and is traded on New York Stock Exchange. It employs 40110 people.

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Our tools can tell you how much better you can do entering a position in Bhp Billiton without increasing your portfolio risk or giving up 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 Bhp Billiton

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 Bhp Billiton 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 Bhp Billiton will appreciate offsetting losses from the drop in the long position's value.

Moving together with Bhp Billiton

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The ability to find closely correlated positions to Bhp Billiton could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Bhp Billiton 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 Bhp Billiton - 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 Bhp Billiton to buy it.
The correlation of Bhp Billiton 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 Bhp Billiton moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Bhp Billiton 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 Bhp Billiton 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 Bhp Billiton Piotroski F Score and Bhp Billiton Altman Z Score analysis. Note that the Bhp Billiton information on this page should be used as a complementary analysis to other Bhp Billiton'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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.

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When running Bhp Billiton price analysis, check to measure Bhp Billiton'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 Bhp Billiton is operating at the current time. Most of Bhp Billiton's value examination focuses on studying past and present price action to predict the probability of Bhp Billiton's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Bhp Billiton's price. Additionally, you may evaluate how the addition of Bhp Billiton to your portfolios can decrease your overall portfolio volatility.
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Is Bhp Billiton'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 Bhp Billiton. If investors know Bhp Billiton 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 Bhp Billiton 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
1.43
Market Capitalization
194.4 B
Quarterly Revenue Growth YOY
0.28
Return On Assets
0.2
Return On Equity
0.33
The market value of Bhp Billiton is measured differently than its book value, which is the value of Bhp Billiton that is recorded on the company's balance sheet. Investors also form their own opinion of Bhp Billiton's value that differs from its market value or its book value, called intrinsic value, which is Bhp Billiton'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 Bhp Billiton's market value can be influenced by many factors that don't directly affect Bhp Billiton'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 Bhp Billiton's value and its price as these two are different measures arrived at by different means. Investors typically determine Bhp Billiton value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Bhp Billiton'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.