International Business Machines Stock Beneish M Score

IBM Stock  USD 220.71  6.11  2.85%   
This module uses fundamental data of International Business to approximate the value of its Beneish M Score. International Business 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 International Business Piotroski F Score and International Business Altman Z Score analysis.
  
At this time, International Business' Cash Flow To Debt Ratio is very stable compared to the past year. At this time, International Business' Cash Per Share is very stable compared to the past year. As of the 21st of November 2024, Payout Ratio is likely to grow to 0.85, while PTB Ratio is likely to drop 4.46.
At this time, it appears that International Business is an unlikely manipulator. The earnings manipulation may begin if International Business' 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 International Business 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 International Business' 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.
-2.63
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.68

Focus
Asset Quality

0.76

Focus
Expense Coverage

0.82

Focus
Gross Margin Strengs

0.96

Focus
Accruals Factor

0.82

Focus
Depreciation Resistance

1.09

Focus
Net Sales Growth

1.4

Focus
Financial Leverage Condition

0.93

Focus

International Business 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 International Business' 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 Receivables7.3 B7.7 B
Notably Down
Slightly volatile
Total Revenue86.6 B61.9 B
Significantly Up
Slightly volatile
Total Assets112.2 B135.2 B
Significantly Down
Slightly volatile
Total Current Assets45.9 B32.9 B
Significantly Up
Slightly volatile
Non Current Assets Total66.2 B102.3 B
Way Down
Slightly volatile
Property Plant Equipment10.3 B7.4 B
Significantly Up
Slightly volatile
Depreciation And Amortization5.4 B4.4 B
Fairly Up
Slightly volatile
Selling General Administrative20.6 B18 B
Fairly Up
Slightly volatile
Total Current Liabilities37.3 B34.1 B
Significantly Up
Pretty Stable
Non Current Liabilities Total47.9 B78.5 B
Way Down
Slightly volatile
Short Term Debt7.4 B7.2 B
Fairly Up
Pretty Stable
Long Term Debt32.7 B50.1 B
Way Down
Slightly volatile
Operating Income11.4 B7.5 B
Way Up
Slightly volatile
Total Cash From Operating Activities15 B13.4 B
Moderately Up
Pretty Stable
Long Term Investments1.4 B1.5 B
Notably Down
Slightly volatile
Gross Profit Margin0.530.5545
Sufficiently Down
Very volatile

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

About International Business 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.

Other Operating Expenses

75.12 Billion

At this time, International Business' Other Operating Expenses is very stable compared to the past year.

International Business 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 International Business. 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 Receivables23.8B18.7B15.0B7.0B7.7B7.3B
Total Revenue77.1B73.6B57.4B60.5B61.9B86.6B
Total Assets152.2B156.0B132.0B127.2B135.2B112.2B
Total Current Assets38.4B39.2B29.5B29.1B32.9B45.9B
Net Debt56.1B49.7B48.5B46.1B46.8B25.1B
Short Term Debt10.2B8.5B7.8B5.6B7.2B7.4B
Long Term Debt54.1B54.4B44.9B46.2B50.1B32.7B
Operating Income11.5B6.9B6.8B2.4B7.5B11.4B
Investments7.0B(153M)(414M)(4.2B)(11.2B)(10.7B)

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

About International Business Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze International Business Machines's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of International Business using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of International Business Machines 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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When determining whether International Business is a strong investment it is important to analyze International Business' competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact International Business' future performance. For an informed investment choice regarding International Stock, refer to the following important reports:
Is IT Consulting & Other Services 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 International Business. If investors know International 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 International Business 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
0.141
Dividend Share
6.66
Earnings Share
7
Revenue Per Share
68.106
Quarterly Revenue Growth
0.015
The market value of International Business is measured differently than its book value, which is the value of International that is recorded on the company's balance sheet. Investors also form their own opinion of International Business' value that differs from its market value or its book value, called intrinsic value, which is International Business' 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 International Business' market value can be influenced by many factors that don't directly affect International Business' 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 International Business' value and its price as these two are different measures arrived at by different means. Investors typically determine if International Business is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, International Business' 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.