Golar Lng Limited Stock Beneish M Score

GLNG Stock  USD 42.20  0.49  1.15%   
This module uses fundamental data of Golar LNG to approximate the value of its Beneish M Score. Golar LNG 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 Golar LNG Piotroski F Score and Golar LNG Altman Z Score analysis.
  
At this time, Golar LNG's Short Term Debt is most likely to increase significantly in the upcoming years. The Golar LNG's current Long Term Debt Total is estimated to increase to about 1.5 B, while Short and Long Term Debt is projected to decrease to roughly 325.4 M. At this time, Golar LNG's Days Sales Outstanding is most likely to increase significantly in the upcoming years. The Golar LNG's current Book Value Per Share is estimated to increase to 25.63, while Free Cash Flow Yield is projected to decrease to (0.08).
At this time, it appears that Golar LNG Limited is an unlikely manipulator. The earnings manipulation may begin if Golar LNG'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 Golar LNG 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 Golar LNG'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.
-2.97
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.26

Focus
Asset Quality

0.35

Focus
Expense Coverage

1.08

Focus
Gross Margin Strengs

0.89

Focus
Accruals Factor

1.08

Focus
Depreciation Resistance

0.64

Focus
Net Sales Growth

0.83

Focus
Financial Leverage Condition

1.26

Focus

Golar LNG 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 Golar LNG'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 Receivables60.5 M57.6 M
Sufficiently Up
Slightly volatile
Total Revenue248 M298.4 M
Significantly Down
Slightly volatile
Total Assets3.1 B4.1 B
Significantly Down
Slightly volatile
Total Current Assets856.3 M815.6 M
Sufficiently Up
Slightly volatile
Non Current Assets Total2.8 B3.3 B
Fairly Down
Slightly volatile
Property Plant Equipment2.2 B2.6 B
Fairly Down
Slightly volatile
Depreciation And Amortization66.5 M50.3 M
Significantly Up
Pretty Stable
Selling General Administrative29.9 M33.5 M
Moderately Down
Slightly volatile
Total Current Liabilities540.6 M545.8 M
Slightly Down
Slightly volatile
Non Current Liabilities Total1.4 B935.8 M
Way Up
Slightly volatile
Short Term Debt352.7 M344 M
Fairly Up
Slightly volatile
Long Term Debt1.3 B874.2 M
Way Up
Slightly volatile
Long Term Investments51.3 M54 M
Notably Down
Slightly volatile

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

About Golar LNG 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

66.52 Million

At this time, Golar LNG's Depreciation And Amortization is most likely to increase significantly in the upcoming years.

Golar LNG 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 Golar LNG. 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 Receivables1.7M38.1M35.0M50.8M57.6M60.5M
Total Revenue448.8M438.6M451.8M267.7M298.4M248.0M
Total Assets4.7B4.3B4.9B4.3B4.1B3.1B
Total Current Assets401.5M295.2M925.6M1.3B815.6M856.3M
Net Debt2.3B2.2B2.1B314.1M544.8M517.6M
Short Term Debt1.1B987.9M707.0M346.1M344.0M352.7M
Long Term Debt1.3B1.4B1.4B844.5M874.2M1.3B
Operating Income133.7M173.9M181.9M91.6M20.8M19.8M
Investments(11.3M)(103.0M)(8.6M)1.1B(131.7M)(125.1M)
Gross Profit Margin0.310.390.480.530.520.46

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

About Golar LNG Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Golar LNG Limited is a strong investment it is important to analyze Golar LNG'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 Golar LNG's future performance. For an informed investment choice regarding Golar Stock, refer to the following important reports:
Check out Golar LNG Piotroski F Score and Golar LNG Altman Z Score analysis.
You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Oil & Gas Storage & Transportation 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 Golar LNG. If investors know Golar 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 Golar LNG 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
(0.33)
Dividend Share
1
Earnings Share
0.13
Revenue Per Share
2.626
Quarterly Revenue Growth
(0.04)
The market value of Golar LNG Limited is measured differently than its book value, which is the value of Golar that is recorded on the company's balance sheet. Investors also form their own opinion of Golar LNG's value that differs from its market value or its book value, called intrinsic value, which is Golar LNG'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 Golar LNG's market value can be influenced by many factors that don't directly affect Golar LNG'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 Golar LNG's value and its price as these two are different measures arrived at by different means. Investors typically determine if Golar LNG is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Golar LNG'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.