Ford Beneish M Score

F -  USA Stock  

USD 13.63  0.51  3.89%

This module uses fundamental data of Ford to approximate the value of its Beneish M Score. Ford 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 Ford Piotroski F Score and Ford Altman Z Score analysis.
  
Refresh
Ford Debt Current is projected to increase significantly based on the last few years of reporting. The past year's Debt Current was at 49.69 Billion. The current year Debt Non Current is expected to grow to about 103.3 B, whereas Issuance Repayment of Debt Securities is forecasted to decline to (23.6 B). Ford Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 1.82. The current year PPandE Turnover is expected to grow to 4.73, whereas Receivables Turnover is forecasted to decline to 2.55.
At this time, it appears that Ford Motor is an unlikely manipulator. The earnings manipulation may begin if Ford'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 Ford 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 Ford'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.
-2.56
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.93Focus
Asset Quality1.38Focus
Expense Coverage0.94Focus
Gross Margin Strengs0.91Focus
Accruals Factor0.94Focus
Depreciation Resistance0.9Focus
Net Sales Growth1.14Focus
Financial Leverage Condition1.04Focus

Ford 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 Ford'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
Revenues155.9 B136.3 B
Fairly Up
Increasing
Slightly volatile
Selling General and Administrative Expense12.7 B11.9 B
Notably Up
Increasing
Slightly volatile
Net Cash Flow from Operations17.3 B15.8 B
Significantly Up
Increasing
Slightly volatile
Depreciation Amortization and Accretion8.5 B7.3 B
Fairly Up
Increasing
Slightly volatile
Total Assets268.9 B257 B
Sufficiently Up
Increasing
Slightly volatile
Investments156.3 B143.8 B
Significantly Up
Increasing
Slightly volatile
Investments Current61.2 B61.6 B
Slightly Down
Decreasing
Very volatile
Investments Non Current91.9 B82.2 B
Moderately Up
Increasing
Slightly volatile
Property Plant and Equipment Net37.9 B37.1 B
Fairly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables12.1 B11.4 B
Notably Up
Increasing
Slightly volatile
Total Liabilities226.2 B208.4 B
Significantly Up
Increasing
Slightly volatile
Current Assets122.1 B109 B
Moderately Up
Increasing
Slightly volatile
Assets Non Current158.8 B148 B
Notably Up
Increasing
Slightly volatile
Current Liabilities101.4 B90.7 B
Moderately Up
Increasing
Slightly volatile
Liabilities Non Current133.8 B117.7 B
Fairly Up
Increasing
Slightly volatile
Total Debt150.5 B138.1 B
Significantly Up
Increasing
Slightly volatile
Debt Current55.3 B49.7 B
Moderately Up
Increasing
Slightly volatile
Debt Non Current103.3 B88.4 B
Fairly Up
Increasing
Slightly volatile
Operating Income4.2 B4.5 B
Significantly Down
Decreasing
Slightly volatile
Gross Margin0.110.121
Significantly Down
Decreasing
Slightly volatile

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

About Ford 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 Margin

4.16

Share
Ford Operating Margin is projected to drop based on the last few years of reporting. The past year's Operating Margin was at 3.32

Ford 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 Ford. 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)
Revenues156.78 B160.34 B155.9 B127.14 B136.34 B155.86 B
Total Assets258.5 B256.54 B258.54 B267.26 B257.04 B268.93 B
Current Assets116.8 B114.65 B114.05 B116.74 B109 B122.07 B
Assets Non Current141.69 B141.89 B144.49 B150.52 B148.04 B158.84 B
Total Liabilities222.79 B220.47 B225.31 B236.45 B208.41 B226.23 B
Current Liabilities94.6 B95.57 B98.13 B97.19 B90.73 B101.41 B
Total Debt154.29 B154.21 B155.31 B161.68 B138.09 B150.46 B
Debt Current51.62 B53.49 B53.95 B51.34 B49.69 B55.33 B
Debt Non Current102.67 B100.72 B101.36 B110.34 B88.4 B103.32 B
Operating Income4.88 B3.2 B574 M(4.41 B)4.52 B4.22 B
Investments160.15 B158.96 B156.25 B155.25 B143.76 B156.35 B
Investments Current72.64 B71.59 B70.8 B67.12 B61.6 B61.23 B

About Ford Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ford Motor's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ford using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ford Motor 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.
Ford Motor Company designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. Ford Motor Company was incorporated in 1903 and is based in Dearborn, Michigan. Ford operates under Auto Manufacturers classification in the United States and is traded on New York Stock Exchange. It employs 183000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Ford 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.

Did you try this?

Run Portfolio Anywhere Now

   

Portfolio Anywhere

Track or share privately all of your investments from the convenience of any device
All  Next Launch Module

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Ford Motor using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

Build Optimal Portfolios

Align your risk with return expectations

Fix your portfolio
By capturing your risk tolerance and investment horizon Macroaxis technology of instant portfolio optimization will compute exactly how much risk is acceptable for your desired return expectations
Please check Ford Piotroski F Score and Ford Altman Z Score analysis. Note that the Ford Motor information on this page should be used as a complementary analysis to other Ford'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

Complementary Tools for Ford Stock analysis

When running Ford Motor price analysis, check to measure Ford'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 Ford is operating at the current time. Most of Ford's value examination focuses on studying past and present price action to predict the probability of Ford's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ford's price. Additionally, you may evaluate how the addition of Ford to your portfolios can decrease your overall portfolio volatility.
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Volatility Analysis
Get historical volatility and risk analysis based on latest market data
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Anywhere
Track or share privately all of your investments from the convenience of any device
Go
Sync Your Broker
Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors.
Go
Equity Search
Search for actively traded equities including funds and ETFs from over 30 global markets
Go
Money Managers
Screen money managers from public funds and ETFs managed around the world
Go
Price Exposure Probability
Analyze equity upside and downside potential for a given time horizon across multiple markets
Go
Is Ford'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 Ford. If investors know Ford 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 Ford listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Ford Motor is measured differently than its book value, which is the value of Ford that is recorded on the company's balance sheet. Investors also form their own opinion of Ford's value that differs from its market value or its book value, called intrinsic value, which is Ford'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 Ford's market value can be influenced by many factors that don't directly affect Ford'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 Ford's value and its price as these two are different measures arrived at by different means. Investors typically determine Ford value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ford'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.