Goldman Beneish M Score

GS -  USA Stock  

USD 343.91  4.19  1.20%

This module uses fundamental data of Goldman Sachs to approximate the value of its Beneish M Score. Goldman Sachs 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 Goldman Sachs Piotroski F Score and Goldman Sachs Altman Z Score analysis.

Goldman Beneish M Score 

 
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As of 01/22/2022, Issuance Repayment of Debt Securities is likely to grow to about 8.3 B, while Long Term Debt is likely to drop slightly above 227.3 B. Goldman Sachs Profit Margin is relatively stable at the moment as compared to the past year. Goldman Sachs reported last year Profit Margin of 0.23. As of 01/22/2022, Price to Book Value is likely to grow to 1.11, while Cash Flow Per Share is likely to drop (47.09) .
At this time, it appears that Goldman Sachs Group is an unlikely manipulator. The earnings manipulation may begin if Goldman Sachs' 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 Goldman Sachs 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 Goldman Sachs' 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.
-3.01
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables
0.96
Asset Quality
N/A
Expense Coverage
1.01
Gross Margin Strengs
0.99
Accruals Factor
1.01
Depreciation Resistance
N/A
Net Sales Growth
0.92
Financial Leverage Condition
1.0

Goldman Sachs 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 Goldman Sachs' 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 B51.2 B
Significantly Down
Increasing
Slightly volatile
Selling General and Administrative Expense21.5 B23.2 B
Significantly Down
Decreasing
Very volatile
Net Cash Flow from Operations(12.7 B)(12.4 B)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion1.5 B1.7 B
Fairly Down
Decreasing
Very volatile
Total Assets1245.6 B1337.5 B
Significantly Down
Increasing
Slightly volatile
Investments919.4 B975.7 B
Notably Down
Increasing
Slightly volatile
Trade and Non Trade Receivables122.6 B139.5 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities1138.9 B1227.2 B
Significantly Down
Increasing
Slightly volatile
Total Debt497.2 B534.6 B
Significantly Down
Decreasing
Stable
Operating Income16 B17.9 B
Fairly Down
Increasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Goldman Sachs 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.

Revenues

47.05 BillionShare
Goldman Sachs Revenues is relatively stable at the moment as compared to the past year. Goldman Sachs reported last year Revenues of 51.24 Billion

Goldman Sachs 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 Goldman Sachs. 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)
Trade and Non Trade Receivables84.79 B72.45 B74.61 B121.33 B139.53 B122.59 B
Revenues32.73 B36.62 B36.55 B44.56 B51.24 B47.05 B
Total Assets916.78 B931.8 B992.97 B1,163.03 B1,337.48 B1,245.56 B
Depreciation Amortization and Accretion1.15 B1.33 B1.7 B1.9 B1.71 B1.5 B
Selling General and Administrative Expense18.62 B20.92 B21.88 B25.77 B23.2 B21.5 B
Total Liabilities834.53 B841.61 B902.7 B1,067.1 B1,227.16 B1,138.89 B
Total Debt500.84 B485.51 B516.22 B594.02 B534.62 B497.18 B
Operating Income11.79 B13.15 B11.65 B15.58 B17.91 B15.96 B
Net Cash Flow from Operations(20.49 B)16.56 B23.87 B(13.73 B)(12.36 B)(12.68 B)
Investments693.59 B699.8 B749.93 B848.41 B975.67 B919.38 B

About Goldman Sachs Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Goldman Sachs Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Goldman Sachs using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Goldman Sachs Group 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.
The Goldman Sachs Group, Inc., a financial institution, provides range of financial services for corporations, financial institutions, governments, and individuals worldwide. The company was founded in 1869 and is headquartered in New York, New York. Goldman Sachs operates under Capital Markets classification in the United States and is traded on New York Stock Exchange. It employs 43000 people.

Goldman Sachs Investors Sentiment

The influence of Goldman Sachs' 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 Goldman. 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.

Goldman Sachs Implied Volatility

    
  38.76  
Goldman Sachs' implied volatility exposes the market's sentiment of Goldman Sachs Group stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Goldman Sachs' 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 Goldman Sachs stock will not fluctuate a lot when Goldman Sachs' 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 Goldman Sachs 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, Goldman Sachs' short interest history, or implied volatility extrapolated from Goldman Sachs options trading.

Current Sentiment - GS

Goldman Sachs Group Investor Sentiment

Nearly all of Macroaxis users are currently bullish on Goldman Sachs Group. What is your judgment towards investing in Goldman Sachs Group? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Please check Goldman Sachs Piotroski F Score and Goldman Sachs Altman Z Score analysis. Note that the Goldman Sachs Group information on this page should be used as a complementary analysis to other Goldman Sachs' 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.

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