Delhivery Limited Stock Beneish M Score

DELHIVERY   345.85  0.50  0.14%   
This module uses fundamental data of Delhivery to approximate the value of its Beneish M Score. Delhivery 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Delhivery Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in gross domestic product.
  
At present, Delhivery's Short Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Short and Long Term Debt is expected to grow to about 1.3 B, whereas Short and Long Term Debt Total is forecasted to decline to about 8.9 B.
At this time, Delhivery's M Score is inapplicable. The earnings manipulation may begin if Delhivery'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 Delhivery 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 Delhivery'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.
-3.41
Beneish M Score - Inapplicable
Elasticity of Receivables

1.42

Focus
Asset Quality

0.87

Focus
Expense Coverage

1.36

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.36

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

0.7

Focus
Financial Leverage Condition

1.35

Focus

Delhivery 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 Delhivery'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 Receivables14.8 B14.9 B
Slightly Down
Slightly volatile
Total Revenue57.1 B81.4 B
Way Down
Slightly volatile
Total Assets82 B114.5 B
Way Down
Slightly volatile
Total Current Assets46.2 B59.5 B
Significantly Down
Slightly volatile
Non Current Assets Total35.8 B55 B
Way Down
Slightly volatile
Property Plant Equipment11.8 B15.8 B
Way Down
Slightly volatile
Depreciation And Amortization5.4 B7.2 B
Way Down
Slightly volatile
Selling General Administrative508 M534.7 M
Notably Down
Pretty Stable
Total Current Liabilities12.4 B13.5 B
Significantly Down
Pretty Stable
Non Current Liabilities Total8.3 B9.6 B
Fairly Down
Very volatile
Short Term DebtB2.9 B
Sufficiently Up
Slightly volatile
Long Term Debt381.7 M401.8 M
Notably Down
Very volatile
Short Term Investments23 B17.8 B
Significantly Up
Slightly volatile

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

About Delhivery 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 And Amortization

5.4 Billion

At present, Delhivery's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Delhivery 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 Delhivery. 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 Receivables8.8B9.6B16.7B16.8B14.9B14.8B
Total Revenue27.8B44.5B68.8B72.3B81.4B57.1B
Total Assets43.6B70.8B82.5B111.9B114.5B82.0B
Total Current Assets25.7B35.9B39.5B69.4B59.5B46.2B
Net Debt6.3B6.0B8.7B6.3B7.7B8.0B
Short Term Debt2.7B3.3B4.1B2.7B2.9B3.0B
Operating Income(4.3B)(4.6B)(5.8B)(12.5B)(87.0M)(91.3M)

About Delhivery Fundamental Analysis

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

Also Currently Popular

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.

Other Information on Investing in Delhivery Stock

Delhivery financial ratios help investors to determine whether Delhivery 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 Delhivery with respect to the benefits of owning Delhivery security.