Goldman Sachs Cdr Stock Beneish M Score

GS Stock   30.51  0.57  1.90%   
This module uses fundamental data of GOLDMAN SACHS to approximate the value of its Beneish M Score. GOLDMAN SACHS 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 Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in GOLDMAN SACHS CDR. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
As of the 29th of November 2024, Long Term Debt is likely to grow to about 257.2 B, while Net Debt is likely to drop about 68.4 B.
At this time, GOLDMAN SACHS's M Score is inapplicable. The earnings manipulation may begin if GOLDMAN SACHS'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 GOLDMAN SACHS 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 GOLDMAN SACHS'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.
-2.99
Beneish M Score - Inapplicable
Elasticity of Receivables

0.83

Focus
Asset Quality

1.44

Focus
Expense Coverage

0.98

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.98

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.08

Focus
Financial Leverage Condition

0.9

Focus

GOLDMAN SACHS 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 GOLDMAN SACHS'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 Receivables118.1 B132.5 B
Fairly Down
Slightly volatile
Total Revenue49.9 B46.3 B
Significantly Up
Slightly volatile
Total Assets1.5 T1.6 T
Moderately Down
Slightly volatile
Total Current Assets1.3 T1.5 T
Fairly Down
Slightly volatile
Property Plant Equipment17.9 B17.3 B
Sufficiently Up
Slightly volatile
Selling General Administrative17 B16.1 B
Sufficiently Up
Slightly volatile
Total Current Liabilities696.7 B854.1 B
Significantly Down
Slightly volatile
Net Debt68.4 B89.4 B
Way Down
Slightly volatile
Long Term Debt257.2 B247.9 B
Sufficiently Up
Slightly volatile
Short Term Investments34.8 B33.2 B
Sufficiently Up
Slightly volatile
Long Term Investments521.7 B573.2 B
Significantly Down
Slightly volatile

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

About GOLDMAN SACHS 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.

Reconciled Depreciation

2.85 Billion

At this time, GOLDMAN SACHS's Reconciled Depreciation is very stable compared to the past year.

About GOLDMAN SACHS Fundamental Analysis

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

Pair Trading with GOLDMAN SACHS

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if GOLDMAN SACHS position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in GOLDMAN SACHS will appreciate offsetting losses from the drop in the long position's value.

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Moving against GOLDMAN Stock

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The ability to find closely correlated positions to GOLDMAN SACHS could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace GOLDMAN SACHS when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back GOLDMAN SACHS - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling GOLDMAN SACHS CDR to buy it.
The correlation of GOLDMAN SACHS is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as GOLDMAN SACHS moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if GOLDMAN SACHS CDR moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for GOLDMAN SACHS can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Other Information on Investing in GOLDMAN Stock

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