Reddit, Stock Beneish M Score

RDDT Stock   155.93  11.24  6.72%   
This module uses fundamental data of Reddit, to approximate the value of its Beneish M Score. Reddit, 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 Reddit, Piotroski F Score and Reddit, Altman Z Score analysis.
For more information on how to buy Reddit, Stock please use our How to Invest in Reddit, guide.
  
At this time, Reddit,'s Short Term Debt is comparatively stable compared to the past year. Net Debt To EBITDA is likely to gain to 4.86 in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 21.6 M in 2024. At this time, Reddit,'s Sales General And Administrative To Revenue is comparatively stable compared to the past year. Income Quality is likely to gain to 0.96 in 2024, whereas Operating Cash Flow Per Share is likely to drop (1.33) in 2024.
At this time, it appears that Reddit, is an unlikely manipulator. The earnings manipulation may begin if Reddit,'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 Reddit, 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 Reddit,'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.
-3.66
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.03

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.11

Focus
Gross Margin Strengs

0.77

Focus
Accruals Factor

1.11

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.75

Focus
Financial Leverage Condition

1.32

Focus

Reddit, 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 Reddit,'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 Receivables194.4 M253 M
Way Down
Slightly volatile
Total Revenue600.8 M804 M
Way Down
Slightly volatile
Total Assets1.5 B1.6 B
Significantly Down
Slightly volatile
Total Current Assets1.4 B1.5 B
Notably Down
Slightly volatile
Non Current Assets Total78.1 M116.8 M
Way Down
Slightly volatile
Depreciation And Amortization7.3 M13.7 M
Way Down
Slightly volatile
Selling General Administrative136.6 M164.7 M
Significantly Down
Slightly volatile
Total Current Liabilities99.1 M133.6 M
Way Down
Slightly volatile
Non Current Liabilities Total21.2 M22.3 M
Notably Down
Very volatile
Short Term DebtM3.7 M
Significantly Up
Slightly volatile
Short Term Investments541.4 M811.9 M
Way Down
Slightly volatile
Gross Profit Margin0.660.8619
Way Down
Pretty Stable

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

About Reddit, 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

7.27 Million

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

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

About Reddit, Fundamental Analysis

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

Thematic Opportunities

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Additional Tools for Reddit, Stock Analysis

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