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Netscout Systems Stock Beneish M Score

NTCT Stock  USD 21.55  0.78  3.76%   
This module uses fundamental data of NetScout Systems to approximate the value of its Beneish M Score. NetScout Systems 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 NetScout Systems Piotroski F Score and NetScout Systems Altman Z Score analysis.
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At this time, NetScout Systems' Long Term Debt is comparatively stable compared to the past year. Cash Flow To Debt Ratio is likely to gain to 5.25 in 2025, despite the fact that Net Debt is likely to grow to (393.2 M). At this time, NetScout Systems' Cash Per Share is comparatively stable compared to the past year. Days Payables Outstanding is likely to gain to 48.66 in 2025, whereas Capex To Depreciation is likely to drop 0.08 in 2025.
At this time, it appears that NetScout Systems is an unlikely manipulator. The earnings manipulation may begin if NetScout Systems' 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 NetScout Systems 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 NetScout Systems' 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.
-17.52
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.07

Focus
Asset Quality

1.07

Focus
Expense Coverage

1.19

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

1.19

Focus
Depreciation Resistance

1.1

Focus
Net Sales Growth

0.62

Focus
Financial Leverage Condition

40.66

Focus

NetScout Systems 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 NetScout Systems' 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 Receivables108.3 M163.7 M
Way Down
Slightly volatile
Total Revenue506.4 M822.7 M
Way Down
Slightly volatile
Total Assets1.5 B2.2 B
Way Down
Slightly volatile
Total Current Assets415.7 M713.2 M
Way Down
Slightly volatile
Non Current Assets Total1.1 B1.5 B
Way Down
Slightly volatile
Property Plant Equipment30.6 M39.9 M
Way Down
Slightly volatile
Depreciation And Amortization50.1 M86.2 M
Way Down
Slightly volatile
Selling General Administrative71 M96.7 M
Way Down
Slightly volatile
Total Current Liabilities228.8 M407.9 M
Way Down
Slightly volatile
Non Current Liabilities Total306.9 M218.3 M
Significantly Up
Slightly volatile
Short Term Debt10.4 M11 M
Notably Down
Slightly volatile
Total Cash From Operating Activities228.6 M217.7 M
Sufficiently Up
Slightly volatile
Short Term Investments63.2 M34.1 M
Way Up
Slightly volatile
Gross Profit Margin0.830.7827
Notably Up
Pretty Stable

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

About NetScout Systems 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

50.11 Million

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

NetScout Systems 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 NetScout Systems. 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.
202020212022202320242025 (projected)
Net Receivables197.7M148.2M143.9M192.1M163.7M108.3M
Total Revenue831.3M855.6M914.5M829.5M822.7M506.4M
Total Assets3.1B3.2B2.8B2.6B2.2B1.5B
Total Current Assets722.5M921.9M617.4M672.5M713.2M415.7M
Net Debt(43.6M)(220.8M)(226.3M)(239.6M)(413.9M)(393.2M)
Short Term Debt12.4M22.8M23.3M12.0M11.0M10.4M
Long Term Debt550M450M350M100M115M223.8M
Operating Income37.1M48.6M77.7M(149.8M)(367.6M)(349.2M)
Investments41.1M(57.8M)25.9M13.4M(7.0M)(6.6M)

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

About NetScout Systems Fundamental Analysis

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

When running NetScout Systems' price analysis, check to measure NetScout Systems' 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 NetScout Systems is operating at the current time. Most of NetScout Systems' value examination focuses on studying past and present price action to predict the probability of NetScout Systems' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move NetScout Systems' price. Additionally, you may evaluate how the addition of NetScout Systems to your portfolios can decrease your overall portfolio volatility.