Keysight Technologies Stock Beneish M Score

This module uses fundamental data of Keysight Technologies to approximate the value of its Beneish M Score. Keysight Technologies 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 Correlation Analysis to better understand how to build diversified portfolios. Also, note that the market value of any company could be tightly coupled with the direction of predictive economic indicators such as signals in manufacturing.
  
At this time, Keysight Technologies' Debt Ratio is comparatively stable compared to the past year. At this time, Keysight Technologies' Inventory Turnover is comparatively stable compared to the past year. Payables Turnover is likely to gain to 7.99 in 2024, whereas Days Sales Outstanding is likely to drop 42.98 in 2024.
At this time, it appears that Keysight Technologies is an unlikely manipulator. The earnings manipulation may begin if Keysight Technologies' 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 Keysight Technologies 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 Keysight Technologies' 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.
-2.57
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.92

Focus
Asset Quality

1.25

Focus
Expense Coverage

1.18

Focus
Gross Margin Strengs

0.79

Focus
Accruals Factor

1.18

Focus
Depreciation Resistance

0.73

Focus
Net Sales Growth

0.67

Focus
Financial Leverage Condition

1.8

Focus

Keysight Technologies 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 Keysight Technologies' 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 Receivables635.4 MB
Way Down
Slightly volatile
Total Revenue4.2 B6.3 B
Way Down
Slightly volatile
Total Assets5.9 B10 B
Way Down
Slightly volatile
Total Current Assets2.9 B5.5 B
Way Down
Slightly volatile
Non Current Assets Total3.1 B4.5 B
Way Down
Slightly volatile
Property Plant Equipment686.8 M1.1 B
Way Down
Slightly volatile
Depreciation And Amortization220.8 M243.8 M
Moderately Down
Slightly volatile
Selling General Administrative1.2 B1.5 B
Significantly Down
Slightly volatile
Total Current Liabilities2.5 B2.4 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total2.1 B2.3 B
Moderately Down
Slightly volatile
Short Term Debt771.6 M734.9 M
Sufficiently Up
Slightly volatile
Long Term Debt1.6 B1.4 B
Fairly Up
Slightly volatile
Total Cash From Operating Activities859 M1.6 B
Way Down
Slightly volatile
Long Term Investments67.9 M93.2 M
Way Down
Slightly volatile
Gross Profit Margin0.460.58
Significantly Down
Pretty Stable

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

About Keysight Technologies 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

220.76 Million

At this time, Keysight Technologies' Depreciation And Amortization is comparatively stable compared to the past year.

Keysight Technologies 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 Keysight Technologies. 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 Receivables606M735M905M900M1.0B635.4M
Total Revenue4.2B4.9B5.4B5.5B6.3B4.2B
Total Assets7.2B7.8B8.1B8.7B10.0B5.9B
Total Current Assets3.4B3.8B4.2B4.8B5.5B2.9B
Net Debt225M(29M)(24M)(446M)(401.4M)(381.3M)
Long Term Debt1.8B1.8B1.8B1.2B1.4B1.6B
Operating Income765M1.1B1.1B1.4B1.6B1.6B
Investments(442M)(353M)(33M)(288M)(259.2M)(272.2M)
Gross Profit Margin0.590.60.620.640.650.46

About Keysight Technologies Fundamental Analysis

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

When running Keysight Technologies' price analysis, check to measure Keysight Technologies' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Keysight Technologies is operating at the current time. Most of Keysight Technologies' value examination focuses on studying past and present price action to predict the probability of Keysight Technologies' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Keysight Technologies' price. Additionally, you may evaluate how the addition of Keysight Technologies to your portfolios can decrease your overall portfolio volatility.
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