Barrick Beneish M Score

GOLD
 Stock
  

USD 16.86  0.03  0.18%   

This module uses fundamental data of Barrick Gold to approximate the value of its Beneish M Score. Barrick Gold 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 Barrick Gold Piotroski F Score and Barrick Gold Altman Z Score analysis.
  
Barrick Gold Debt Current is projected to decrease significantly based on the last few years of reporting. The past year's Debt Current was at 15 Million. The current year Debt Non Current is expected to grow to about 6.1 B, whereas Issuance Repayment of Debt Securities is forecasted to decline to (29.1 M). Barrick Gold Debt to Equity Ratio is projected to slightly decrease based on the last few years of reporting. The past year's Debt to Equity Ratio was at 0.61. The current year Earnings per Basic Share is expected to grow to 1.23, whereas Current Ratio is forecasted to decline to 3.63.
At this time, it appears that Barrick Gold Corp is an unlikely manipulator. The earnings manipulation may begin if Barrick Gold'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 Barrick Gold 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 Barrick Gold'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.
-2.81
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.98Focus
Asset Quality0.7Focus
Expense Coverage1.42Focus
Gross Margin Strengs0.9Focus
Accruals Factor1.42Focus
Depreciation Resistance0.88Focus
Net Sales Growth0.91Focus
Financial Leverage Condition1.27Focus

Barrick Gold 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 Barrick Gold'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 Expense194.1 M151 M
Significantly Up
Decreasing
Slightly volatile
Revenues10.9 B12 B
Moderately Down
Decreasing
Slightly volatile
Trade and Non Trade Receivables550.7 M623 M
Fairly Down
Increasing
Stable
Property Plant and Equipment Net21.9 B25 B
Fairly Down
Decreasing
Stable
Operating Income4.9 B4.5 B
Significantly Up
Increasing
Stable
Net Cash Flow from Operations3.8 B4.4 B
Fairly Down
Decreasing
Slightly volatile
Liabilities Non Current12.9 B12.5 B
Sufficiently Up
Decreasing
Slightly volatile
Current Liabilities2.1 B2.1 B
Fairly Up
Decreasing
Slightly volatile
Total Liabilities15 B14.6 B
Fairly Up
Decreasing
Slightly volatile
Investments Non CurrentB4.6 B
Significantly Up
Increasing
Slightly volatile
InvestmentsB4.6 B
Significantly Up
Increasing
Slightly volatile
Gross Margin0.370.409
Moderately Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion2.1 B2.1 B
Slightly Up
Increasing
Slightly volatile
Debt Non Current6.1 B4.6 B
Significantly Up
Decreasing
Slightly volatile
Debt Current15.4 M15 M
Fairly Up
Decreasing
Slightly volatile
Total Debt6.5 B5.2 B
Significantly Up
Decreasing
Slightly volatile
Assets Non Current33.3 B38.6 B
Fairly Down
Decreasing
Stable
Current Assets7.9 B8.2 B
Sufficiently Down
Increasing
Slightly volatile
Total Assets40.2 B46.9 B
Fairly Down
Decreasing
Stable

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

About Barrick Gold 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

2.12 Billion

Barrick Gold Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 2.1 Billion

Barrick Gold 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 Barrick Gold. 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)
Revenues8.37 B7.24 B9.72 B12.6 B11.98 B10.86 B
Total Assets25.31 B22.63 B44.39 B46.51 B46.89 B40.18 B
Current Assets4.68 B3.98 B6.89 B8.14 B8.25 B7.87 B
Assets Non Current20.62 B18.65 B37.51 B38.36 B38.64 B33.28 B
Total Liabilities14.24 B13.25 B14.56 B14.8 B14.58 B15.02 B
Current Liabilities1.75 B1.67 B2.38 B2.22 B2.09 B2.11 B
Total Debt6.42 B5.74 B5.54 B5.16 B5.15 B6.51 B
Debt Current59 M43 M375 M20 M15 M15.39 M
Debt Non Current6.36 B5.7 B5.16 B5.13 B4.62 B6.11 B
Operating Income3.43 B488 M3.67 B4.88 B4.5 B4.86 B
Investments1.21 B1.23 B4.53 B4.67 B4.59 B4.96 B

About Barrick Gold Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Barrick Gold Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Barrick Gold using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Barrick Gold Corp 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.
Barrick Gold Corporation engages in the exploration, mine development, production, and sale of gold and copper properties. Barrick Gold Corporation was founded in 1983 and is headquartered in Toronto, Canada. Barrick Gold is traded on New York Stock Exchange in the United States.

Barrick Gold Investors Sentiment

The influence of Barrick Gold'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 Barrick. 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 Barrick Gold's public news can be used to forecast risks associated with investment in Barrick. The trend in average sentiment can be used to explain how an investor holding Barrick can time the market purely based on public headlines and social activities around Barrick Gold Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Barrick Gold'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 Barrick Gold'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 Barrick Gold's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Barrick Gold.

Barrick Gold Implied Volatility

    
  60.07  
Barrick Gold's implied volatility exposes the market's sentiment of Barrick Gold Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Barrick Gold'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 Barrick Gold stock will not fluctuate a lot when Barrick Gold'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 Barrick Gold 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, Barrick Gold's short interest history, or implied volatility extrapolated from Barrick Gold options trading.

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Please check Barrick Gold Piotroski F Score and Barrick Gold Altman Z Score analysis. You can also try Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..

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