This module uses fundamental data of Berkshire Hathaway to approximate the value of its Beneish M Score. Berkshire Hathaway 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. Check out Berkshire Hathaway Piotroski F Score and Berkshire Hathaway Altman Z Score analysis.
Berkshire
Beneish M Score
Market Cap
Enterprise Value
Price To Sales Ratio
Ptb Ratio
Days Sales Outstanding
Book Value Per Share
Free Cash Flow Yield
Operating Cash Flow Per Share
Capex To Depreciation
Pb Ratio
Ev To Sales
Free Cash Flow Per Share
Roic
Inventory Turnover
Net Income Per Share
Days Of Inventory On Hand
Payables Turnover
Sales General And Administrative To Revenue
Capex To Revenue
Cash Per Share
Pocfratio
Interest Coverage
Capex To Operating Cash Flow
Pfcf Ratio
Days Payables Outstanding
Income Quality
Roe
Ev To Operating Cash Flow
Pe Ratio
Return On Tangible Assets
Ev To Free Cash Flow
Earnings Yield
Intangibles To Total Assets
Net Debt To E B I T D A
Current Ratio
Tangible Book Value Per Share
Receivables Turnover
Graham Number
Shareholders Equity Per Share
Debt To Equity
Capex Per Share
Graham Net Net
Revenue Per Share
Interest Debt Per Share
Debt To Assets
Enterprise Value Over E B I T D A
Short Term Coverage Ratios
Price Earnings Ratio
Operating Cycle
Price Book Value Ratio
Price Earnings To Growth Ratio
Days Of Payables Outstanding
Price To Operating Cash Flows Ratio
Price To Free Cash Flows Ratio
Pretax Profit Margin
Ebt Per Ebit
Operating Profit Margin
Effective Tax Rate
Company Equity Multiplier
Long Term Debt To Capitalization
Total Debt To Capitalization
Return On Capital Employed
Debt Equity Ratio
Ebit Per Revenue
Quick Ratio
Dividend Paid And Capex Coverage Ratio
Net Income Per E B T
Cash Ratio
Cash Conversion Cycle
Operating Cash Flow Sales Ratio
Days Of Inventory Outstanding
Days Of Sales Outstanding
Free Cash Flow Operating Cash Flow Ratio
Cash Flow Coverage Ratios
Price To Book Ratio
Fixed Asset Turnover
Capital Expenditure Coverage Ratio
Price Cash Flow Ratio
Enterprise Value Multiple
Debt Ratio
Cash Flow To Debt Ratio
Price Sales Ratio
Return On Assets
Asset Turnover
Net Profit Margin
Gross Profit Margin
Price Fair Value
Return On Equity
Change In Cash
Free Cash Flow
Change In Working Capital
Begin Period Cash Flow
Other Cashflows From Financing Activities
Depreciation
Other Non Cash Items
Capital Expenditures
Total Cash From Operating Activities
Change To Account Receivables
Net Income
Total Cash From Financing Activities
End Period Cash Flow
Change To Inventory
Sale Purchase Of Stock
Investments
Change Receivables
Net Borrowings
Total Cashflows From Investing Activities
Exchange Rate Changes
Cash And Cash Equivalents Changes
Cash Flows Other Operating
Other Cashflows From Investing Activities
Change To Netincome
Change To Liabilities
Change To Operating Activities
Dividends Paid
Common Stock Shares Outstanding
Total Assets
Short Long Term Debt Total
Other Current Liab
Total Current Liabilities
Total Stockholder Equity
Property Plant And Equipment Net
Net Debt
Retained Earnings
Accounts Payable
Cash
Non Current Assets Total
Non Currrent Assets Other
Other Assets
Cash And Short Term Investments
Net Receivables
Liabilities And Stockholders Equity
Non Current Liabilities Total
Other Stockholder Equity
Total Liab
Property Plant And Equipment Gross
Total Current Assets
Good Will
Common Stock Total Equity
Short Term Investments
Inventory
Other Current Assets
Accumulated Other Comprehensive Income
Short Term Debt
Common Stock
Intangible Assets
Net Tangible Assets
Current Deferred Revenue
Noncontrolling Interest In Consolidated Entity
Long Term Debt
Retained Earnings Total Equity
Long Term Debt Total
Capital Surpluse
Long Term Investments
Treasury Stock
Non Current Liabilities Other
Property Plant Equipment
Other Liab
Deferred Long Term Liab
Short Long Term Debt
Cash And Equivalents
Net Invested Capital
Interest Expense
Total Revenue
Gross Profit
Other Operating Expenses
Operating Income
Ebit
Ebitda
Total Operating Expenses
Total Other Income Expense Net
Income Tax Expense
Depreciation And Amortization
Selling General Administrative
Income Before Tax
Selling And Marketing Expenses
Cost Of Revenue
Net Income From Continuing Ops
Net Income Applicable To Common Shares
Minority Interest
Tax Provision
Net Interest Income
Interest Income
Non Operating Income Net Other
Reconciled Depreciation
Probability Of Bankruptcy
At present, Berkshire Hathaway's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 94.8 B, whereas Short and Long Term Debt is forecasted to decline to about 5.1 B. At present, Berkshire Hathaway's PTB Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 80.85, whereas Price To Sales Ratio is forecasted to decline to 2.02.
At this time, it appears that Berkshire Hathaway is an unlikely manipulator. The earnings manipulation may begin if Berkshire Hathaway'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 Berkshire Hathaway 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 Berkshire Hathaway'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.
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 Berkshire Hathaway'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.
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 Berkshire Hathaway's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Berkshire Hathaway in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Berkshire Hathaway's degree of accounting gimmicks and manipulations.
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 And Amortization
13.11 Billion
At present, Berkshire Hathaway's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.
Berkshire Hathaway 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 Berkshire Hathaway. 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.
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, Berkshire Hathaway's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Berkshire Hathaway's managers, analysts, and investors.
Environment Score
Governance Score
Social Score
About Berkshire Hathaway Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Berkshire Hathaway's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Berkshire Hathaway using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Berkshire Hathaway 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.
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Berkshire Hathaway financial ratios help investors to determine whether Berkshire Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Berkshire with respect to the benefits of owning Berkshire Hathaway security.