Ingersoll Rand Stock Beneish M Score
| IR Stock | USD 92.85 0.15 0.16% |
Ingersoll | Beneish M Score |
At this time, it appears that Ingersoll Rand is an unlikely manipulator. The earnings manipulation may begin if Ingersoll Rand'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 Ingersoll Rand 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 Ingersoll Rand'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.
-3.53
Beneish M Score - Unlikely Manipulator
Ingersoll Rand 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 Ingersoll Rand'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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Net Receivables | 1 B | 1.2 B |
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| Total Revenue | 6.1 B | 6.9 B |
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| Total Assets | 9.8 B | 15.6 B |
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| Total Current Assets | 2.7 B | 4.1 B |
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| Non Current Assets Total | 6.9 B | 11.5 B |
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| Property Plant Equipment | 1.6 B | 1.8 B |
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| Depreciation And Amortization | 301.3 M | 459.1 M |
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| Selling General Administrative | 2 B | 1.2 B |
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| Total Current Liabilities | 2 B | 1.8 B |
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| Non Current Liabilities Total | 3.8 B | 3.9 B |
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| Short Term Debt | 29.1 M | 30.6 M |
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| Long Term Debt | 3.1 B | 2.7 B |
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| Total Cash From Operating Activities | 1.4 B | 1.4 B |
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| Long Term Investments | 21.4 M | 24.1 M |
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| Gross Profit Margin | 0.3 | 0.3657 |
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Ingersoll Rand 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 Ingersoll Rand's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Ingersoll Rand in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Ingersoll Rand's degree of accounting gimmicks and manipulations.
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About Ingersoll Rand 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.
Current Deferred Revenue |
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Ingersoll Rand 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 Ingersoll Rand. 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.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Net Receivables | 459.1M | 966.6M | 948.6M | 1.1B | 1.2B | 1.0B | |
| Total Revenue | 2.5B | 4.9B | 5.2B | 5.9B | 6.9B | 6.1B | |
| Total Assets | 4.6B | 16.1B | 15.2B | 14.8B | 15.6B | 9.8B | |
| Total Current Assets | 1.5B | 3.9B | 4.1B | 4.0B | 4.1B | 2.7B | |
| Net Debt | 1.1B | 2.1B | 1.3B | 1.1B | 1.1B | 1.2B | |
| Short Term Debt | 7.6M | 40.4M | 38.8M | 36.5M | 30.6M | 29.1M | |
| Long Term Debt | 4.9B | 4.5B | 4.5B | 3.8B | 2.7B | 3.1B | |
| Operating Income | 275.3M | 85.7M | 565.7M | 817.3M | 1.2B | 594.6M | |
| Investments | 10M | (37.9M) | 914.3M | (332.9M) | (1.1B) | (1.0B) |
Ingersoll Rand 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, Ingersoll Rand's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ingersoll Rand's managers, analysts, and investors.Environment Score | Governance Score | Social Score |
About Ingersoll Rand Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Ingersoll Rand's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ingersoll Rand using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ingersoll Rand 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.
Ingersoll Rand Investors Sentiment
The influence of Ingersoll Rand's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Ingersoll. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock market does not have solid backing from leading economists and market statisticians.
Investor biases related to Ingersoll Rand's public news can be used to forecast risks associated with an investment in Ingersoll. The trend in average sentiment can be used to explain how an investor holding Ingersoll can time the market purely based on public headlines and social activities around Ingersoll Rand. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Ingersoll Rand's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Ingersoll Rand's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Ingersoll Rand's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Ingersoll Rand.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Ingersoll Rand in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Ingersoll Rand's short interest history, or implied volatility extrapolated from Ingersoll Rand options trading.
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When running Ingersoll Rand's price analysis, check to measure Ingersoll Rand'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 Ingersoll Rand is operating at the current time. Most of Ingersoll Rand's value examination focuses on studying past and present price action to predict the probability of Ingersoll Rand's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ingersoll Rand's price. Additionally, you may evaluate how the addition of Ingersoll Rand to your portfolios can decrease your overall portfolio volatility.
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Is Ingersoll Rand's industry 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 Ingersoll Rand. If investors know Ingersoll 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 Ingersoll Rand 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 0.046 | Dividend Share 0.08 | Earnings Share 1.9 | Revenue Per Share 16.986 | Quarterly Revenue Growth 0.122 |
The market value of Ingersoll Rand is measured differently than its book value, which is the value of Ingersoll that is recorded on the company's balance sheet. Investors also form their own opinion of Ingersoll Rand's value that differs from its market value or its book value, called intrinsic value, which is Ingersoll Rand'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 Ingersoll Rand's market value can be influenced by many factors that don't directly affect Ingersoll Rand'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 Ingersoll Rand's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ingersoll Rand is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ingersoll Rand'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.