Mettler Toledo International Stock Beneish M Score

MTD Stock  USD 1,197  29.92  2.56%   
This module uses fundamental data of Mettler Toledo to approximate the value of its Beneish M Score. Mettler Toledo 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 Mettler Toledo Piotroski F Score and Mettler Toledo Altman Z Score analysis.
  
At present, Mettler Toledo's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 231.8 M, whereas Debt To Equity is projected to grow to (13.18). At present, Mettler Toledo's Days Sales Outstanding is projected to increase slightly based on the last few years of reporting. The current year's Operating Cash Flow Per Share is expected to grow to 46.42, whereas Book Value Per Share is projected to grow to (6.52).
At this time, it appears that Mettler Toledo Inter is an unlikely manipulator. The earnings manipulation may begin if Mettler Toledo'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 Mettler Toledo 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 Mettler Toledo'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.
-2.61
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.05

Focus
Asset Quality

1.06

Focus
Expense Coverage

1.16

Focus
Gross Margin Strengs

0.71

Focus
Accruals Factor

1.16

Focus
Depreciation Resistance

1.03

Focus
Net Sales Growth

0.62

Focus
Financial Leverage Condition

1.34

Focus

Mettler Toledo 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 Mettler Toledo'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 Receivables430.5 M663.9 M
Way Down
Slightly volatile
Total Revenue2.3 B3.8 B
Way Down
Slightly volatile
Total Assets2.2 B3.4 B
Way Down
Slightly volatile
Total Current Assets878.4 M1.2 B
Way Down
Slightly volatile
Non Current Assets Total1.3 B2.1 B
Way Down
Slightly volatile
Property Plant Equipment489.9 M895.4 M
Way Down
Slightly volatile
Depreciation And Amortization63.9 M121.2 M
Way Down
Slightly volatile
Selling General Administrative649.6 M908.3 M
Way Down
Slightly volatile
Total Current Liabilities626.4 M1.2 B
Way Down
Slightly volatile
Non Current Liabilities Total2.4 B2.3 B
Sufficiently Up
Slightly volatile
Net Debt2.1 BB
Sufficiently Up
Slightly volatile
Short Term Debt231.8 M220.7 M
Sufficiently Up
Slightly volatile
Long Term DebtB1.9 B
Sufficiently Up
Slightly volatile
Operating Income1.2 B1.2 B
Sufficiently Up
Slightly volatile
Total Cash From Operating ActivitiesB965.9 M
Sufficiently Up
Slightly volatile
Long Term Investments436 K490.5 K
Fairly Down
Slightly volatile
Gross Profit Margin0.420.5916
Way Down
Pretty Stable

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

About Mettler Toledo 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

1.86 Billion

At present, Mettler Toledo's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

Mettler Toledo 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 Mettler Toledo. 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 Receivables566.3M593.8M647.3M709.3M663.9M430.5M
Total Revenue3.0B3.1B3.7B3.9B3.8B2.3B
Total Assets2.8B2.8B3.3B3.5B3.4B2.2B
Total Current Assets1.1B1.1B1.3B1.4B1.2B878.4M
Net Debt1.1B1.2B1.6B1.9B2.0B2.1B
Short Term Debt55.9M79.5M131.8M135.3M220.7M231.8M
Long Term Debt1.2B1.3B1.6B1.9B1.9B2.0B
Operating Income734.6M797.9M997.8M1.1B1.2B1.2B
Investments(99.1M)(100.4M)(314.1M)(139.4M)(146.2M)(153.5M)

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

About Mettler Toledo Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Mettler Toledo International's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Mettler Toledo using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Mettler Toledo International 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.
When determining whether Mettler Toledo Inter is a strong investment it is important to analyze Mettler Toledo'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 Mettler Toledo's future performance. For an informed investment choice regarding Mettler Stock, refer to the following important reports:
Is Life Sciences Tools & 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 Mettler Toledo. If investors know Mettler 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 Mettler Toledo 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
0.081
Earnings Share
37.11
Revenue Per Share
176.102
Quarterly Revenue Growth
0.013
Return On Assets
0.2014
The market value of Mettler Toledo Inter is measured differently than its book value, which is the value of Mettler that is recorded on the company's balance sheet. Investors also form their own opinion of Mettler Toledo's value that differs from its market value or its book value, called intrinsic value, which is Mettler Toledo'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 Mettler Toledo's market value can be influenced by many factors that don't directly affect Mettler Toledo'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 Mettler Toledo's value and its price as these two are different measures arrived at by different means. Investors typically determine if Mettler Toledo is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Mettler Toledo'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.