Deutsche Bank Ag Stock Beneish M Score

DB Stock  USD 17.61  0.36  2.00%   
This module uses fundamental data of Deutsche Bank to approximate the value of its Beneish M Score. Deutsche Bank 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 Deutsche Bank Piotroski F Score and Deutsche Bank Altman Z Score analysis.
  
At present, Deutsche Bank's Short and Long Term Debt Total is projected to decrease significantly based on the last few years of reporting. The current year's Long Term Debt is expected to grow to about 163.8 B, whereas Net Debt is projected to grow to (38.3 B). At present, Deutsche Bank's Price To Sales Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Dividend Yield is expected to grow to 0.03, whereas PTB Ratio is forecasted to decline to 0.33.
At this time, it appears that Deutsche Bank AG is an unlikely manipulator. The earnings manipulation may begin if Deutsche Bank'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 Deutsche Bank 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 Deutsche Bank'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.
-3.03
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.05

Focus
Asset Quality

1.03

Focus
Expense Coverage

1.12

Focus
Gross Margin Strengs

0.89

Focus
Accruals Factor

1.12

Focus
Depreciation Resistance

0.9

Focus
Net Sales Growth

0.93

Focus
Financial Leverage Condition

2.4

Focus

Deutsche Bank 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 Deutsche Bank'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
Net Receivables76.2 B78.2 B
Fairly Down
Pretty Stable
Total Revenue26.8 B28.9 B
Significantly Down
Very volatile
Total Assets1.4 T1.3 T
Notably Up
Pretty Stable
Total Current Assets277.1 B291.7 B
Notably Down
Slightly volatile
Property Plant Equipment4.6 B5.5 B
Fairly Down
Slightly volatile
Selling General Administrative18.4 B17.8 B
Sufficiently Up
Very volatile
Total Current Liabilities181.2 B96.6 B
Way Up
Slightly volatile
Non Current Liabilities Total1.3 T1.2 T
Sufficiently Up
Slightly volatile
Short Term Debt9.1 B9.6 B
Notably Down
Slightly volatile
Long Term Debt163.8 B130.1 B
Significantly Up
Slightly volatile
Short Term Investments55.2 B28.9 B
Way Up
Slightly volatile
Long Term Investments237.1 B177.1 B
Significantly Up
Slightly volatile
Gross Profit Margin0.80.9
Fairly Down
Slightly volatile

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

About Deutsche Bank 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.

Current Deferred Revenue

807.12 Million

At present, Deutsche Bank's Current Deferred Revenue is projected to decrease significantly based on the last few years of reporting.

Deutsche Bank 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 Deutsche Bank. 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.
201920202021202220232024 (projected)
Net Receivables66.9B986M74.8B76.4B78.2B76.2B
Total Revenue22.9B23.9B25.3B26.7B28.9B26.8B
Total Assets1.3T1.3T1.3T1.3T1.3T1.4T
Total Current Assets253.4B232.2B297.5B219.4B291.7B277.1B
Net Debt(775M)(22.6B)(43.2B)(39.7B)(40.3B)(38.3B)
Short Term Debt5.2B3.6B4.0B5.1B9.6B9.1B
Long Term Debt102.2B149.2B97.5B131.5B130.1B163.8B
Operating Income(2.8B)874M3.2B10.8B6.5B6.2B
Investments(10.3B)(1.9B)25.0B(17.2B)(2.6B)(2.7B)

Deutsche Bank 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, Deutsche Bank's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Deutsche Bank's managers, analysts, and investors.
Environmental
Governance
Social

About Deutsche Bank Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Deutsche Bank AG's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Deutsche Bank using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Deutsche Bank AG 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.

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Check out Deutsche Bank Piotroski F Score and Deutsche Bank Altman Z Score analysis.
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Is Diversified Capital Markets space 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 Deutsche Bank. If investors know Deutsche 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 Deutsche Bank 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
0.446
Dividend Share
0.45
Earnings Share
2.01
Revenue Per Share
13.758
Quarterly Revenue Growth
0.017
The market value of Deutsche Bank AG is measured differently than its book value, which is the value of Deutsche that is recorded on the company's balance sheet. Investors also form their own opinion of Deutsche Bank's value that differs from its market value or its book value, called intrinsic value, which is Deutsche Bank'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 Deutsche Bank's market value can be influenced by many factors that don't directly affect Deutsche Bank'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 Deutsche Bank's value and its price as these two are different measures arrived at by different means. Investors typically determine if Deutsche Bank is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Deutsche Bank'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.