Greensky Beneish M Score

GSKY -  USA Stock  

USD 11.34  0.31  2.66%

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

Greensky Beneish M Score 

 
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Issuance Repayment of Debt Securities is likely to rise to about 706 M in 2022, whereas Total Debt is likely to drop slightly above 877.3 M in 2022. Greensky Inc Asset Turnover is fairly stable at the moment as compared to the past year. Greensky Inc reported Asset Turnover of 0.36 in 2021. EBITDA Margin is likely to rise to 0.08 in 2022, whereas Book Value per Share is likely to drop (0.0305)  in 2022.
At this time, it appears that Greensky Inc Cl is a possible manipulator. The earnings manipulation may begin if Greensky 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 Greensky 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 Greensky 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.
-1.18
Beneish M Score - Possible Manipulator
Elasticity of Receivables
1.08
Asset Quality
N/A
Expense Coverage
0.95
Gross Margin Strengs
1.24
Accruals Factor
0.95
Depreciation Resistance
0.85
Net Sales Growth
0.88
Financial Leverage Condition
1.23

Greensky 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 Greensky 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
Revenues534.5 M604.5 M
Fairly Down
Increasing
Very volatile
Selling General and Administrative Expense142.6 M169.2 M
Fairly Down
Increasing
Stable
Net Cash Flow from Operations(432.4 M)(421.3 M)
Fairly Down
Decreasing
Slightly volatile
Depreciation Amortization and Accretion14.1 M13 M
Significantly Up
Increasing
Slightly volatile
Total Assets1.4 B1.8 B
Significantly Down
Increasing
Slightly volatile
Investments709 M657.1 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net20.5 M24.7 M
Significantly Down
Increasing
Stable
Trade and Non Trade Receivables24.1 M25.3 M
Sufficiently Down
Increasing
Slightly volatile
Total Liabilities2.1 BB
Significantly Up
Increasing
Slightly volatile
Total Debt877.3 M1.1 B
Significantly Down
Increasing
Slightly volatile
Operating Income73 M47.3 M
Way Up
Decreasing
Slightly volatile
Gross Margin0.460.37
Fairly Up
Decreasing
Slightly volatile

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

About Greensky 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

14.06 MillionShare
Greensky Inc Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Greensky Inc reported Depreciation Amortization and Accretion of 13.03 Million in 2021

Greensky 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 Greensky 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)
Trade and Non Trade Receivables18.2 M18.58 M15.54 M21.96 M25.25 M24.15 M
Revenues263.87 M325.89 M420.3 M525.65 M604.5 M534.47 M
Total Assets302.2 M462.89 M802.9 M1.52 B1.75 B1.39 B
Property Plant and Equipment Net7.02 M7.85 M10.23 M21.45 M24.67 M20.49 M
Depreciation Amortization and Accretion3.71 M3.98 M4.48 M11.33 M13.03 M14.06 M
Selling General and Administrative Expense59.52 M79 M94.87 M147.14 M169.21 M142.57 M
Total Liabilities90 M488.93 M837.67 M1.7 B1.95 B2.11 B
Operating Income119.81 M145.6 M155.74 M52.54 M47.29 M72.96 M
Net Cash Flow from Operations121.94 M160.39 M256.43 M(468.1 M)(421.29 M)(432.38 M)
Investments41.27 M73.61 M2.88 M571.41 M657.13 M709.01 M
Gross Margin0.70.730.620.410.370.46

About Greensky Inc Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Greensky Inc Cl's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Greensky Inc using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Greensky Inc Cl 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.
GreenSky, Inc., a technology company, that enables promotional financing at the point of sale for merchants, consumers, and bank partners. The company was founded in 2006 and is headquartered in Atlanta, Georgia. Greensky Inc operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 1164 people.

Greensky Inc Investors Sentiment

The influence of Greensky Inc'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 Greensky. 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.

Greensky Inc Implied Volatility

    
  20.33  
Greensky Inc's implied volatility exposes the market's sentiment of Greensky Inc Cl stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Greensky Inc'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 Greensky Inc stock will not fluctuate a lot when Greensky Inc'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 Greensky Inc 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, Greensky Inc's short interest history, or implied volatility extrapolated from Greensky Inc options trading.

Current Sentiment - GSKY

Greensky Inc Cl Investor Sentiment

Most of Macroaxis users are currently bullish on Greensky Inc Cl. What is your judgment towards investing in Greensky Inc Cl? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish
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Please check Greensky Inc Piotroski F Score and Greensky Inc Altman Z Score analysis. Note that the Greensky Inc Cl information on this page should be used as a complementary analysis to other Greensky 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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