Nvidia Beneish M Score

NVDA
 Stock
  

USD 180.97  10.11  5.92%   

This module uses fundamental data of Nvidia Corp to approximate the value of its Beneish M Score. Nvidia Corp 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. Additionally, see Nvidia Corp Piotroski F Score and Nvidia Corp Altman Z Score analysis.
  
Nvidia Corp Total Debt is projected to increase significantly based on the last few years of reporting. The past year's Total Debt was at 8.74 Billion. The current year Debt Non Current is expected to grow to about 8.2 B, whereas Debt Current is forecasted to decline to about 812.5 M. The current year Book Value per Share is expected to grow to 33.97. The current year Dividend Yield is expected to grow to 0.000924
At this time, it appears that Nvidia Corp is a possible manipulator. The earnings manipulation may begin if Nvidia Corp'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 Nvidia Corp 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 Nvidia Corp'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.
1.0
Beneish M Score - Possible Manipulator
Elasticity of Receivables1.27Focus
Asset Quality9.53Focus
Expense Coverage1.27Focus
Gross Margin Strengs1.03Focus
Accruals Factor1.27Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.85Focus
Financial Leverage Condition1.09Focus

Nvidia Corp 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 Nvidia Corp'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
Revenues22.9 B26.9 B
Fairly Down
Increasing
Slightly volatile
Selling General and Administrative Expense2.4 B2.2 B
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations7.9 B9.1 B
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion1.4 B1.3 B
Significantly Up
Increasing
Slightly volatile
Total Assets38.4 B44.2 B
Fairly Down
Increasing
Slightly volatile
Investments13.3 B12.3 B
Significantly Up
Increasing
Slightly volatile
Investments Current13.3 B12.3 B
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net3.5 B3.3 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade ReceivablesB2.8 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities15.5 B17.6 B
Fairly Down
Increasing
Slightly volatile
Current Assets23.6 B28.8 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current15.8 B14.6 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities4.3 B4.3 B
Slightly Up
Increasing
Slightly volatile
Liabilities Non Current9.9 B9.2 B
Significantly Up
Increasing
Slightly volatile
Total Debt9.4 B8.7 B
Significantly Up
Increasing
Slightly volatile
Debt Current812.5 M899.1 M
Moderately Down
Increasing
Slightly volatile
Debt Non Current8.2 B7.6 B
Significantly Up
Increasing
Slightly volatile
Operating Income7.7 B10 B
Way Down
Increasing
Slightly volatile
Gross Margin66.9864.929
Sufficiently Up
Increasing
Slightly volatile

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

About Nvidia Corp 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

1.36 Billion

Nvidia Corp 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 1.26 Billion

Nvidia Corp ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Nvidia Corp's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Nvidia Corp's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Nvidia Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Nvidia Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Nvidia Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Nvidia 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.
NVIDIA Corporation provides graphics, and compute and networking solutions in the United States, Taiwan, China, and internationally. NVIDIA Corporation was incorporated in 1993 and is headquartered in Santa Clara, California. Nvidia Corp operates under Semiconductors classification in the United States and is traded on NASDAQ Exchange. It employs 22473 people.

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Additionally, see Nvidia Corp Piotroski F Score and Nvidia Corp Altman Z Score analysis. Note that the Nvidia Corp information on this page should be used as a complementary analysis to other Nvidia Corp'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 Analyst Recommendations module to analyst recommendations and target price estimates broken down by several categories.

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When running Nvidia Corp price analysis, check to measure Nvidia Corp'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 Nvidia Corp is operating at the current time. Most of Nvidia Corp's value examination focuses on studying past and present price action to predict the probability of Nvidia Corp's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Nvidia Corp's price. Additionally, you may evaluate how the addition of Nvidia Corp to your portfolios can decrease your overall portfolio volatility.
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Is Nvidia Corp'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 Nvidia Corp. If investors know Nvidia 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 Nvidia Corp 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
-0.16
Market Capitalization
425.8 B
Quarterly Revenue Growth YOY
0.46
Return On Assets
0.19
Return On Equity
0.42
The market value of Nvidia Corp is measured differently than its book value, which is the value of Nvidia that is recorded on the company's balance sheet. Investors also form their own opinion of Nvidia Corp's value that differs from its market value or its book value, called intrinsic value, which is Nvidia Corp'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 Nvidia Corp's market value can be influenced by many factors that don't directly affect Nvidia Corp'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 Nvidia Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Nvidia Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Nvidia Corp'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.