Atlassian Beneish M Score

TEAM
 Stock
  

USD 141.00  0.94  0.67%   

This module uses fundamental data of Atlassian Corp to approximate the value of its Beneish M Score. Atlassian 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, take a look at Atlassian Corp Piotroski F Score and Atlassian Corp Altman Z Score analysis.
  
Debt to Equity Ratio is expected to hike to 3.21 this year, although the value of Long Term Debt to Equity will most likely fall to 2.23. Atlassian Corp Cash Flow Per Share is relatively stable at the moment as compared to the past year. The company's current value of Cash Flow Per Share is estimated at 3.74. Quick Ratio is expected to hike to 1.55 this year, although the value of Operating Margin will most likely fall to (3.90) .
At this time, it appears that Atlassian Corp Plc is an unlikely manipulator. The earnings manipulation may begin if Atlassian 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 Atlassian 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 Atlassian 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.
-3.43
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.79Focus
Asset Quality1.48Focus
Expense Coverage0.74Focus
Gross Margin Strengs0.94Focus
Accruals Factor0.74Focus
Depreciation Resistance0.98Focus
Net Sales Growth1.08Focus
Financial Leverage ConditionN/AFocus

Atlassian 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 Atlassian 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
Selling General and Administrative Expense129.3 M161 M
Significantly Down
Increasing
Slightly volatile
RevenuesB2.8 B
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables11.7 M13.7 M
Fairly Down
Increasing
Slightly volatile
Property Plant and Equipment Net44.2 M52.9 M
Fairly Down
Increasing
Slightly volatile
Operating Income(109.3 M)(106.5 M)
Fairly Down
Decreasing
Slightly volatile
Net Cash Flow from Operations953.2 M883.5 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current18.1 M20.5 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities1.3 B1.6 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities3.3 BB
Significantly Up
Increasing
Slightly volatile
Investments Current469.4 M435.1 M
Significantly Up
Increasing
Slightly volatile
Investments469.4 M435.1 M
Significantly Up
Increasing
Slightly volatile
Gross Margin78.4783.3847
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion17 M19.7 M
Fairly Down
Increasing
Slightly volatile
Assets Non Current165.4 M191.2 M
Fairly Down
Increasing
Slightly volatile
Current Assets1.6 B1.9 B
Significantly Down
Increasing
Slightly volatile
Total Assets3.6 B3.4 B
Significantly Up
Increasing
Slightly volatile

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

About Atlassian 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

17 Million

Atlassian Corp Depreciation Amortization and Accretion is relatively stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 17 Million

Atlassian Corp 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 Atlassian Corp. 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)
Revenues873.95 M1.21 B1.61 B2.09 B2.8 B3.02 B
Total Assets2.42 B2.98 B3.89 B2.95 B3.36 B3.63 B
Current Assets1.82 B2.04 B2.64 B1.63 B1.9 B1.55 B
Total Liabilities1.53 B2.41 B3.32 B2.65 B3.03 B3.26 B
Current Liabilities461.33 M2.33 B3.02 B2.31 B1.59 B1.33 B
Operating Income(53.75 M)(63.36 M)14.09 M101.63 M(106.46 M)(109.26 M)
Gross Margin80.2482.6283.3583.9283.3878.47

About Atlassian Corp Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Atlassian Corp Plc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Atlassian Corp using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Atlassian Corp Plc 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.
Atlassian Corporation, through its subsidiaries, designs, develops, licenses, and maintains various software products worldwide. Atlassian Corporation was founded in 2002 and is headquartered in Sydney, Australia. Atlassian Corp operates under SoftwareApplication classification in the United States and is traded on NASDAQ Exchange. It employs 8813 people.

Atlassian Corp Investors Sentiment

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

Atlassian Corp Implied Volatility

    
  47.36  
Atlassian Corp's implied volatility exposes the market's sentiment of Atlassian Corp Plc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Atlassian Corp'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 Atlassian Corp stock will not fluctuate a lot when Atlassian Corp'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 Atlassian Corp 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, Atlassian Corp's short interest history, or implied volatility extrapolated from Atlassian Corp options trading.

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Additionally, take a look at Atlassian Corp Piotroski F Score and Atlassian Corp Altman Z Score analysis. Note that the Atlassian Corp Plc information on this page should be used as a complementary analysis to other Atlassian 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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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Is Atlassian 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 Atlassian Corp. If investors know Atlassian 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 Atlassian 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
1.72
Market Capitalization
36 B
Quarterly Revenue Growth YOY
0.32
Return On Assets
(0.0363) 
Return On Equity
(0.96) 
The market value of Atlassian Corp Plc is measured differently than its book value, which is the value of Atlassian that is recorded on the company's balance sheet. Investors also form their own opinion of Atlassian Corp's value that differs from its market value or its book value, called intrinsic value, which is Atlassian 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 Atlassian Corp's market value can be influenced by many factors that don't directly affect Atlassian 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 Atlassian Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine Atlassian Corp value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Atlassian 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.