Ralph Beneish M Score

RL
 Stock
  

USD 90.04  0.71  0.78%   

This module uses fundamental data of Ralph Lauren to approximate the value of its Beneish M Score. Ralph Lauren 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, take a look at Ralph Lauren Piotroski F Score and Ralph Lauren Altman Z Score analysis.
  
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Ralph Lauren Total Debt is relatively stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 288.84 Million. Debt Non Current is expected to hike to about 273.2 M this year, although the value of Debt Current will most likely fall to nearly 200.9 M. Ralph Lauren Calculated Tax Rate is relatively stable at the moment as compared to the past year. The company's current value of Calculated Tax Rate is estimated at 45.89. Dividend Yield is expected to hike to 0.005316 this year, although the value of Dividends per Basic Common Share will most likely fall to 0.71.
At this time, it appears that Ralph Lauren Corp is an unlikely manipulator. The earnings manipulation may begin if Ralph Lauren'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 Ralph Lauren 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 Ralph Lauren'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.
-2.6
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.89Focus
Asset Quality0.96Focus
Expense Coverage0.82Focus
Gross Margin Strengs1.01Focus
Accruals Factor0.82Focus
Depreciation Resistance1.04Focus
Net Sales Growth1.05Focus
Financial Leverage Condition0.86Focus

Ralph Lauren 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 Ralph Lauren'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
Revenues6.5 B6.2 B
Sufficiently Up
Decreasing
Slightly volatile
Selling General and Administrative Expense2.3 B2.6 B
Fairly Down
Decreasing
Stable
Net Cash Flow from Operations890 M715.9 M
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion182.5 M202.5 M
Moderately Down
Decreasing
Slightly volatile
Total Assets7.3 B7.7 B
Notably Down
Increasing
Slightly volatile
Investments505 M554 M
Significantly Down
Decreasing
Slightly volatile
Investments Current440.4 M464.1 M
Notably Down
Decreasing
Slightly volatile
Investments Non Current83.1 M89.9 M
Significantly Down
Increasing
Stable
Property Plant and Equipment Net749.4 M795.7 M
Notably Down
Decreasing
Slightly volatile
Trade and Non Trade Receivables460 M492.5 M
Significantly Down
Increasing
Very volatile
Total Liabilities4.1 B5.2 B
Significantly Down
Increasing
Slightly volatile
Current Assets4.1 B4.2 B
Sufficiently Down
Increasing
Slightly volatile
Assets Non Current2.1 B2.3 B
Significantly Down
Decreasing
Slightly volatile
Current LiabilitiesB2.3 B
Moderately Down
Increasing
Slightly volatile
Liabilities Non Current691.4 M735.9 M
Notably Down
Decreasing
Stable
Total Debt288.8 M247 M
Fairly Up
Decreasing
Slightly volatile
Debt Current200.9 M240.3 M
Fairly Down
Increasing
Slightly volatile
Debt Non Current273.2 M247 M
Significantly Up
Decreasing
Slightly volatile
Operating Income682.4 M798.4 M
Fairly Down
Decreasing
Slightly volatile
Gross Margin67.0466.6961
Slightly Up
Increasing
Slightly volatile

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

About Ralph Lauren 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.

Cost of Revenue

2.29 Billion

Ralph Lauren Cost of Revenue is relatively stable at the moment as compared to the past year. The company's current value of Cost of Revenue is estimated at 2.29 Billion

About Ralph Lauren Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ralph Lauren Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ralph Lauren using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ralph Lauren 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.
Ralph Lauren Corporation designs, markets, and distributes lifestyle products in North America, Europe, Asia, and internationally. Ralph Lauren Corporation was founded in 1967 and is headquartered in New York, New York. Ralph Lauren operates under Apparel Manufacturing classification in the United States and is traded on New York Stock Exchange. It employs 12100 people.

Ralph Lauren Investors Sentiment

The influence of Ralph Lauren'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 Ralph. 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.
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 Ralph Lauren 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, Ralph Lauren's short interest history, or implied volatility extrapolated from Ralph Lauren options trading.

Current Sentiment - RL

Ralph Lauren Corp Investor Sentiment

Larger part of Macroaxis users are at this time bullish on Ralph Lauren Corp. What is your perspective on investing in Ralph Lauren Corp? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

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Additionally, take a look at Ralph Lauren Piotroski F Score and Ralph Lauren Altman Z Score analysis. Note that the Ralph Lauren Corp information on this page should be used as a complementary analysis to other Ralph Lauren'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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.

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