Jpmorgan Chase Co Stock Beneish M Score

JPM Stock   32.56  0.52  1.62%   
This module uses fundamental data of JPMorgan Chase to approximate the value of its Beneish M Score. JPMorgan Chase 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 JPMorgan Chase Co. 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 22nd of November 2024, Net Debt is likely to drop to about 56.5 B. In addition to that, Long Term Debt is likely to drop to about 361.3 B.
At this time, JPMorgan Chase's M Score is inapplicable. The earnings manipulation may begin if JPMorgan Chase'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 JPMorgan Chase 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 JPMorgan Chase'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.
-3.0
Beneish M Score - Inapplicable
Elasticity of Receivables

1.15

Focus
Asset Quality

1.1

Focus
Expense Coverage

1.01

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.01

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.89

Focus
Financial Leverage Condition

0.87

Focus

JPMorgan Chase 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 JPMorgan Chase'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 Receivables109.7 B107.4 B
Fairly Up
Slightly volatile
Total Revenue137.4 B155 B
Fairly Down
Slightly volatile
Total Assets3.7 T3.9 T
Notably Down
Slightly volatile
Total Current Assets1.6 T1.8 T
Fairly Down
Slightly volatile
Property Plant Equipment48.1 B46 B
Sufficiently Up
Slightly volatile
Selling General Administrative45.8 B51.1 B
Moderately Down
Slightly volatile
Total Current Liabilities2.9 T3.5 T
Significantly Down
Slightly volatile
Net Debt56.5 B61.9 B
Significantly Down
Slightly volatile
Long Term Debt361.3 B391.8 B
Significantly Down
Slightly volatile
Short Term Investments216.8 B192.5 B
Moderately Up
Pretty Stable
Long Term Investments951 B973.9 B
Fairly Down
Slightly volatile

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

About JPMorgan Chase 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

6.3 Billion

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

About JPMorgan Chase Fundamental Analysis

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

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 JPMorgan Chase 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 JPMorgan Chase will appreciate offsetting losses from the drop in the long position's value.

Moving together with JPMorgan Stock

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Moving against JPMorgan Stock

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The ability to find closely correlated positions to JPMorgan Chase could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace JPMorgan Chase 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 JPMorgan Chase - 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 JPMorgan Chase Co to buy it.
The correlation of JPMorgan Chase 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 JPMorgan Chase moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if JPMorgan Chase 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 JPMorgan Chase 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
When determining whether JPMorgan Chase is a strong investment it is important to analyze JPMorgan Chase's 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 JPMorgan Chase's future performance. For an informed investment choice regarding JPMorgan Stock, refer to the following important reports:
Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in JPMorgan Chase Co. 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.
You can also try the Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Please note, there is a significant difference between JPMorgan Chase's value and its price as these two are different measures arrived at by different means. Investors typically determine if JPMorgan Chase is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, JPMorgan Chase'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.