Harmony Gold Mining Stock Beneish M Score

HMY Stock  USD 8.37  0.06  0.71%   
This module uses fundamental data of Harmony Gold to approximate the value of its Beneish M Score. Harmony Gold 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 Harmony Gold Piotroski F Score and Harmony Gold Altman Z Score analysis.
  
At this time, Harmony Gold's Short and Long Term Debt Total is fairly stable compared to the past year. Long Term Debt is likely to rise to about 6.8 B in 2024, despite the fact that Net Debt is likely to grow to (2.3 B). At this time, Harmony Gold's Net Income Per Share is fairly stable compared to the past year. Days Of Inventory On Hand is likely to rise to 30.98 in 2024, whereas PTB Ratio is likely to drop 1.32 in 2024.
At this time, it appears that Harmony Gold Mining is an unlikely manipulator. The earnings manipulation may begin if Harmony Gold'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 Harmony Gold 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 Harmony Gold'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.
-4.61
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

-2.53

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

1.04

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.78

Focus

Harmony Gold 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 Harmony Gold'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 Receivables2.4 B2.2 B
Sufficiently Up
Slightly volatile
Total Revenue64.4 B61.4 B
Sufficiently Up
Slightly volatile
Total Assets36.6 B60.5 B
Way Down
Slightly volatile
Total Current Assets12.1 B11.5 B
Sufficiently Up
Slightly volatile
Non Current Assets Total31.6 B49 B
Way Down
Slightly volatile
Property Plant Equipment50.1 B47.7 B
Sufficiently Up
Slightly volatile
Selling General Administrative1.4 B1.3 B
Sufficiently Up
Slightly volatile
Total Current Liabilities10.8 B10.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total8.2 B12.2 B
Way Down
Slightly volatile
Long Term Debt6.8 B6.4 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities16.4 B15.7 B
Sufficiently Up
Slightly volatile
Long Term Investments136 M127.7 M
Notably Up
Slightly volatile

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

About Harmony Gold 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.

Other Operating Expenses

52.19 Billion

At this time, Harmony Gold's Other Operating Expenses is fairly stable compared to the past year.

Harmony Gold 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 Harmony Gold. 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 Receivables1.3B1.7B103.4M2.2B2.2B2.4B
Total Revenue29.2B41.7B42.6B49.3B61.4B64.4B
Total Assets44.7B49.5B46.8B57.2B60.5B36.6B
Total Current Assets10.2B8.6B7.5B8.7B11.5B12.1B
Net Debt1.4B542M757M2.8B(2.4B)(2.3B)
Short Term Debt255M387M222M216M260M247M
Long Term Debt7.5B3.0B3.2B5.6B6.4B6.8B
Operating Income(358M)6.0B(755M)7.1B11.7B12.3B
Investments(227M)44M(6.2B)(10.6B)(9.5B)(9.1B)
Gross Profit Margin(0.0732)0.110.150.01680.230.24

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

About Harmony Gold Fundamental Analysis

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

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Additional Tools for Harmony Stock Analysis

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