Paramount Global Class Stock Beneish M Score

PARAA Stock  USD 22.67  0.63  2.70%   
This module uses fundamental data of Paramount Global to approximate the value of its Beneish M Score. Paramount Global 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 Paramount Global Piotroski F Score and Paramount Global Altman Z Score analysis.
  
At present, Paramount Global's Net Debt To EBITDA is projected to increase significantly based on the last few years of reporting. The current year's Debt To Assets is expected to grow to 0.33, whereas Short and Long Term Debt Total is forecasted to decline to about 10.1 B. At present, Paramount Global's Dividend Yield is projected to increase slightly based on the last few years of reporting. The current year's Stock Based Compensation To Revenue is expected to grow to 0.01, whereas Price To Sales Ratio is forecasted to decline to 0.30.
At this time, it appears that Paramount Global Class is an unlikely manipulator. The earnings manipulation may begin if Paramount Global'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 Paramount Global 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 Paramount Global'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.
-2.54
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.89

Focus
Asset Quality

1.01

Focus
Expense Coverage

1.06

Focus
Gross Margin Strengs

1.8

Focus
Accruals Factor

1.06

Focus
Depreciation Resistance

1.43

Focus
Net Sales Growth

0.58

Focus
Financial Leverage Condition

0.83

Focus

Paramount Global 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 Paramount Global'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 Receivables3.7 B7.1 B
Way Down
Slightly volatile
Total Revenue17.1 B29.7 B
Way Down
Slightly volatile
Total Assets41.1 B53.5 B
Way Down
Slightly volatile
Total Current AssetsB12.7 B
Way Down
Slightly volatile
Non Current Assets Total34.1 B40.8 B
Fairly Down
Slightly volatile
Property Plant Equipment2.3 B1.6 B
Way Up
Pretty Stable
Depreciation And Amortization397.1 M418 M
Notably Down
Slightly volatile
Selling General Administrative4.5 B7.4 B
Way Down
Slightly volatile
Total Current Liabilities5.6 B9.7 B
Way Down
Slightly volatile
Non Current Liabilities Total15.7 B20.8 B
Way Down
Slightly volatile
Net DebtB13.4 B
Way Down
Slightly volatile
Short Term Debt950 K1000 K
Notably Down
Very volatile
Long Term Debt10.6 B14.6 B
Way Down
Pretty Stable
Total Cash From Operating Activities451.2 M475 M
Notably Down
Slightly volatile
Gross Profit Margin0.440.245
Way Up
Slightly volatile

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

About Paramount Global 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.

Depreciation And Amortization

397.1 Million

At present, Paramount Global's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Paramount Global 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 Paramount Global. 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 Receivables7.2B7.0B7.0B7.4B7.1B3.7B
Total Revenue27.8B25.3B28.6B30.2B29.7B17.1B
Total Assets49.5B52.7B58.6B58.4B53.5B41.1B
Total Current Assets11.9B13.8B16.7B13.7B12.7B8.0B
Net Debt20.0B18.3B13.0B14.4B13.4B9.0B
Short Term Debt717M16M11M239M1M950K
Long Term Debt18.0B19.7B17.7B367M14.6B10.6B
Operating Income4.3B4.1B4.1B2.3B(451M)(428.5M)
Investments(171M)50M(193M)(254M)942M989.1M

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

About Paramount Global Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Paramount Global Class's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Paramount Global using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Paramount Global Class 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 Paramount Global Class offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Paramount Global's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Paramount Global Class Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Paramount Global Class Stock:
Check out Paramount Global Piotroski F Score and Paramount Global Altman Z Score analysis.
You can also try the Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Is Movies & Entertainment 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 Paramount Global. If investors know Paramount 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 Paramount Global 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
79.876
Dividend Share
0.2
Earnings Share
(9.06)
Revenue Per Share
43.672
Quarterly Revenue Growth
(0.06)
The market value of Paramount Global Class is measured differently than its book value, which is the value of Paramount that is recorded on the company's balance sheet. Investors also form their own opinion of Paramount Global's value that differs from its market value or its book value, called intrinsic value, which is Paramount Global'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 Paramount Global's market value can be influenced by many factors that don't directly affect Paramount Global'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 Paramount Global's value and its price as these two are different measures arrived at by different means. Investors typically determine if Paramount Global is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Paramount Global'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.