Arrowmark Financial Corp Stock Beneish M Score

BANX Stock  USD 20.78  0.03  0.14%   
This module uses fundamental data of Arrowmark Financial to approximate the value of its Beneish M Score. Arrowmark Financial 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 Arrowmark Financial Piotroski F Score and Arrowmark Financial Altman Z Score analysis.
  
At this time, Arrowmark Financial's Long Term Debt is fairly stable compared to the past year. Short Term Debt is likely to rise to about 47 M in 2024, despite the fact that Net Debt is likely to grow to (421.2 K). At this time, Arrowmark Financial's Payables Turnover is fairly stable compared to the past year. Sales General And Administrative To Revenue is likely to rise to 0.13 in 2024, whereas Price To Sales Ratio is likely to drop 5.28 in 2024.
At this time, it appears that Arrowmark Financial Corp is an unlikely manipulator. The earnings manipulation may begin if Arrowmark Financial'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 Arrowmark Financial 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 Arrowmark Financial'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.
-3.45
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.11

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.27

Focus
Gross Margin Strengs

0.92

Focus
Accruals Factor

1.27

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.57

Focus
Financial Leverage Condition

0.93

Focus

Arrowmark Financial 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 Arrowmark Financial'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 Receivables3.5 M5.6 M
Way Down
Slightly volatile
Total Revenue13.3 M23.2 M
Way Down
Slightly volatile
Total Assets204.2 M203.7 M
Slightly Up
Slightly volatile
Total Current Assets3.1 M3.3 M
Notably Down
Slightly volatile
Non Current Assets Total186.6 M234.2 M
Significantly Down
Slightly volatile
Selling General Administrative1.4 MM
Way Down
Slightly volatile
Total Current Liabilities5.6 MM
Significantly Down
Very volatile
Non Current Liabilities Total28.1 M51.3 M
Way Down
Slightly volatile
Short Term Debt47 M45 M
Sufficiently Up
Slightly volatile
Long Term Debt37.1 M29.6 M
Significantly Up
Pretty Stable
Operating Income11.6 M20.5 M
Way Down
Slightly volatile
Long Term Investments207.7 M196.9 M
Notably Up
Very volatile
Gross Profit Margin0.770.8379
Significantly Down
Very volatile

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

About Arrowmark Financial 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

1.55 Million

At this time, Arrowmark Financial's Depreciation And Amortization is fairly stable compared to the past year.

Arrowmark Financial 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 Arrowmark Financial. 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 Receivables1.8M7.0M2.5M3.2M5.6M3.5M
Total Revenue14.4M9.9M14.4M7.9M23.2M13.3M
Total Assets164.7M188.4M218.7M208.5M203.7M204.2M
Total Current Assets1.8M7.3M2.6M3.6M3.3M3.1M
Net Debt17.7M42.6M59.9M55.2M(443.4K)(421.2K)
Short Term Debt17.7M43M60M55.6M45M47.0M
Operating Income12.6M7.8M12.6M7.7M20.5M11.6M
Gross Profit Margin0.750.670.740.480.840.77

About Arrowmark Financial Fundamental Analysis

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

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