Medibank Private Stock Beneish M Score

MPL Stock   3.76  0.02  0.53%   
This module uses fundamental data of Medibank Private to approximate the value of its Beneish M Score. Medibank Private 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, which includes a position in Medibank Private. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
Long Term Debt Total is likely to gain to about 34.2 M in 2024, whereas Net Debt is likely to drop (496.3 M) in 2024.
At this time, Medibank Private's M Score is inapplicable. The earnings manipulation may begin if Medibank Private'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 Medibank Private 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 Medibank Private'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.
32.92
Beneish M Score - Inapplicable
Elasticity of Receivables

1.35

Focus
Asset Quality

90.82

Focus
Expense Coverage

1.5

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.5

Focus
Depreciation Resistance

0.93

Focus
Net Sales Growth

0.7

Focus
Financial Leverage Condition

-0.31

Focus

Medibank Private 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 Medibank Private'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 Receivables37.5 M39.5 M
Notably Down
Slightly volatile
Total Revenue5.6 BB
Way Down
Slightly volatile
Total Assets3.1 B4.7 B
Way Down
Slightly volatile
Total Current AssetsB4.7 B
Sufficiently Up
Slightly volatile
Non Current Assets Total7.2 B6.9 B
Sufficiently Up
Slightly volatile
Property Plant Equipment72.4 M81.1 M
Fairly Down
Very volatile
Selling General Administrative792.3 M754.6 M
Sufficiently Up
Slightly volatile
Total Current Liabilities518.5 M364.2 M
Significantly Up
Slightly volatile
Non Current Liabilities Total2.5 B2.4 B
Sufficiently Up
Slightly volatile
Short Term Debt63.3 M66.6 M
Notably Down
Slightly volatile
Operating Income6.7 M7.1 M
Notably Down
Pretty Stable
Total Cash From Operating Activities496.9 M868.5 M
Way Down
Slightly volatile
Short Term Investments225.1 M236.9 M
Notably Down
Pretty Stable
Long Term Investments334.5 M295.6 M
Moderately Up
Slightly volatile

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

About Medibank Private 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

93.87 Million

At this time, Medibank Private's Depreciation And Amortization is comparatively stable compared to the past year.

Medibank Private 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 Medibank Private. 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 Receivables207.1M215.9M225.4M248.1M39.5M37.5M
Total Revenue6.8B7.0B7.2B7.5B8.0B5.6B
Total Assets3.7B3.9B4.6B4.4B4.7B3.1B
Total Current Assets3.1B3.2B3.7B3.6B4.7B5.0B
Net Debt(762.2M)(578.3M)(519.8M)(365.3M)(472.7M)(496.3M)
Short Term Debt27.9M28.1M30.2M30.9M66.6M63.3M
Operating Income453.6M636.1M557.9M730.3M7.1M6.7M
Investments110.7M(284.1M)(602.7M)58.5M(110.8M)(116.3M)

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

About Medibank Private Fundamental Analysis

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

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