Lg Display Co Stock Beneish M Score

LPL Stock  USD 3.45  0.06  1.71%   
This module uses fundamental data of LG Display to approximate the value of its Beneish M Score. LG Display 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 LG Display Piotroski F Score and LG Display Altman Z Score analysis.
  
At this time, LG Display's Debt To Equity is quite stable compared to the past year. Interest Debt Per Share is expected to rise to about 46.6 K this year, although the value of Long Term Debt Total will most likely fall to about 8.1 T. At this time, LG Display's Inventory Turnover is quite stable compared to the past year. Payables Turnover is expected to rise to 8.94 this year, although the value of PTB Ratio will most likely fall to 0.64.
At this time, it appears that LG Display is an unlikely manipulator. The earnings manipulation may begin if LG Display'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 LG Display 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 LG Display'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.
-4.16
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.96

Focus
Asset Quality

-1.41

Focus
Expense Coverage

0.52

Focus
Gross Margin Strengs

0.95

Focus
Accruals Factor

0.52

Focus
Depreciation Resistance

1.59

Focus
Net Sales Growth

1.02

Focus
Financial Leverage Condition

1.19

Focus

LG Display 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 LG Display'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 Receivables3.2 T3.2 T
Fairly Down
Pretty Stable
Total Revenue21.8 T21.3 T
Fairly Up
Pretty Stable
Total Assets24.4 T35.8 T
Way Down
Slightly volatile
Total Current Assets8.2 T9.5 T
Fairly Down
Slightly volatile
Non Current Assets Total16.2 T26.3 T
Way Down
Slightly volatile
Property Plant Equipment25.3 T24.1 T
Sufficiently Up
Slightly volatile
Depreciation And Amortization2.6 T4.2 T
Way Down
Pretty Stable
Selling General Administrative572.1 B1.1 T
Way Down
Slightly volatile
Total Current Liabilities7.9 T13.9 T
Way Down
Slightly volatile
Non Current Liabilities Total13.8 T13.1 T
Sufficiently Up
Slightly volatile
Net Debt15.1 T14.3 T
Sufficiently Up
Slightly volatile
Short Term Debt5.5 T5.3 T
Sufficiently Up
Slightly volatile
Long Term Debt11.9 T11.3 T
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities1.6 T1.7 T
Notably Down
Very volatile
Short Term Investments2.1 B2.3 B
Notably Down
Slightly volatile
Long Term Investments202.6 B191.5 B
Notably Up
Slightly volatile

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

About LG Display 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

21.29 Trillion

At this time, LG Display's Other Operating Expenses is quite stable compared to the past year.

LG Display 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 LG Display. 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 Receivables4.5T3.5T4.6T2.4T3.2T3.2T
Total Revenue23.5T24.2T29.9T26.2T21.3T21.8T
Total Assets35.6T35.1T38.2T35.7T35.8T24.4T
Total Current Assets10.2T11.1T13.2T9.4T9.5T8.2T
Net Debt10.2T9.9T9.2T13.2T14.3T15.1T
Short Term Debt2.0T3.2T4.1T5.5T5.3T5.5T
Long Term Debt11.5T11.0T8.7T9.6T11.3T11.9T
Operating Income(1.3T)55.1B2.2T(1.7T)(2.5T)(2.4T)
Investments(6.8T)(2.3T)(642.0B)(6.7T)(3.5T)(3.7T)
Gross Profit Margin0.07960.110.180.0430.003760.003572

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

About LG Display Fundamental Analysis

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

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When determining whether LG Display is a strong investment it is important to analyze LG Display'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 LG Display's future performance. For an informed investment choice regarding LPL Stock, refer to the following important reports:
Check out LG Display Piotroski F Score and LG Display Altman Z Score analysis.
You can also try the Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Is Electronic Equipment, Instruments & Components 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 LG Display. If investors know LPL 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 LG Display 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
(0.76)
Earnings Share
(1.21)
Revenue Per Share
26.2 K
Quarterly Revenue Growth
0.425
Return On Assets
(0.01)
The market value of LG Display is measured differently than its book value, which is the value of LPL that is recorded on the company's balance sheet. Investors also form their own opinion of LG Display's value that differs from its market value or its book value, called intrinsic value, which is LG Display'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 LG Display's market value can be influenced by many factors that don't directly affect LG Display'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 LG Display's value and its price as these two are different measures arrived at by different means. Investors typically determine if LG Display is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, LG Display'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.