Toronto Dominion Bank Stock Beneish M Score

TD Stock  USD 56.39  0.51  0.91%   
This module uses fundamental data of Toronto Dominion to approximate the value of its Beneish M Score. Toronto Dominion 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 Toronto Dominion Piotroski F Score and Toronto Dominion Altman Z Score analysis.
  
At present, Toronto Dominion's Net Debt is projected to increase significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 263.1 B, whereas Long Term Debt To Capitalization is forecasted to decline to 0.28. At present, Toronto Dominion's PTB Ratio is projected to slightly decrease based on the last few years of reporting. The current year's Book Value Per Share is expected to grow to 58.13, whereas Days Sales Outstanding is forecasted to decline to 260.91.
At this time, it appears that Toronto Dominion Bank is an unlikely manipulator. The earnings manipulation may begin if Toronto Dominion'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 Toronto Dominion 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 Toronto Dominion'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.
-2.33
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.87

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Toronto Dominion 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 Toronto Dominion'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 Receivables66 B62.8 B
Sufficiently Up
Slightly volatile
Total Revenue59.4 B56.6 B
Sufficiently Up
Slightly volatile
Total Assets2.4 T2.3 T
Sufficiently Up
Slightly volatile
Total Current Assets232.9 B221.8 B
Sufficiently Up
Slightly volatile
Non Current Assets TotalT2.9 T
Sufficiently Up
Slightly volatile
Property Plant Equipment11.4 B10.8 B
Sufficiently Up
Slightly volatile
Depreciation And Amortization2.3 B2.2 B
Sufficiently Up
Slightly volatile
Selling General Administrative23.5 B22.4 B
Sufficiently Up
Slightly volatile
Total Current Liabilities360.3 B343.1 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total2.2 T2.1 T
Sufficiently Up
Slightly volatile
Long Term Debt183.2 B174.5 B
Sufficiently Up
Slightly volatile
Operating Income15.5 B29.2 B
Way Down
Slightly volatile
Short Term Investments54.9 B38.2 B
Way Up
Very volatile
Gross Profit Margin0.790.91
Fairly Down
Slightly volatile

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

About Toronto Dominion 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

109.14 Billion

At present, Toronto Dominion's Current Deferred Revenue is projected to increase significantly based on the last few years of reporting.

Toronto Dominion 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 Toronto Dominion. 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 Receivables34.0B45.6B40.3B54.6B62.8B66.0B
Total Revenue43.3B42.3B45.8B49.2B56.6B59.4B
Total Assets1.7T1.7T1.9T2.0T2.3T2.4T
Total Current Assets307.8B255.1B220.0B192.9B221.8B232.9B
Net Debt(129.6B)90.9B228.2B296.7B341.3B358.3B
Short Term Debt121.5B129.1B216.0B217.9B250.6B263.1B
Long Term Debt16.4B51.6B53.9B151.7B174.5B183.2B
Operating Income13.0B17.9B35.1B25.4B29.2B15.5B
Investments(224.1B)(42.3B)(31.9B)76.2B68.6B72.0B

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

About Toronto Dominion Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Toronto Dominion Bank's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Toronto Dominion using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Toronto Dominion Bank 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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Is Diversified Banks 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 Toronto Dominion. If investors know Toronto 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 Toronto Dominion 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
(0.20)
Dividend Share
4.02
Earnings Share
3.1
Revenue Per Share
29.497
Quarterly Revenue Growth
0.079
The market value of Toronto Dominion Bank is measured differently than its book value, which is the value of Toronto that is recorded on the company's balance sheet. Investors also form their own opinion of Toronto Dominion's value that differs from its market value or its book value, called intrinsic value, which is Toronto Dominion'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 Toronto Dominion's market value can be influenced by many factors that don't directly affect Toronto Dominion'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 Toronto Dominion's value and its price as these two are different measures arrived at by different means. Investors typically determine if Toronto Dominion is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Toronto Dominion'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.