This module uses fundamental data of DRI Healthcare to approximate the value of its Beneish M Score. DRI Healthcare 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in DRI Healthcare Trust. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in employment.
DRI
Beneish M Score
Roe
Return On Tangible Assets
Current Ratio
Company Equity Multiplier
Quick Ratio
Cash Ratio
Return On Assets
Return On Equity
Change In Cash
Other Cashflows From Financing Activities
Other Non Cash Items
Capital Expenditures
Net Income
Total Cash From Financing Activities
End Period Cash Flow
Change To Liabilities
Total Assets
Total Current Liabilities
Total Stockholder Equity
Net Tangible Assets
Net Debt
Retained Earnings
Accounts Payable
Cash
Cash And Short Term Investments
Liabilities And Stockholders Equity
Other Stockholder Equity
Total Liab
Total Current Assets
Common Stock
Depreciation And Amortization
Interest Expense
Other Operating Expenses
Operating Income
Ebit
Total Operating Expenses
Income Before Tax
Net Income Applicable To Common Shares
Probability Of Bankruptcy
At present, DRI Healthcare's Short and Long Term Debt Total is projected to increase significantly based on the last few years of reporting. The current year's Net Debt To EBITDA is expected to grow to 2.52, whereas Net Debt is forecasted to decline to about 75.1 M. At present, DRI Healthcare's Return On Tangible Assets are projected to increase significantly based on the last few years of reporting. The current year's Current Ratio is expected to grow to 5.74, whereas ROE is forecasted to decline to 0.15.
At this time, DRI Healthcare's M Score is inapplicable. The earnings manipulation may begin if DRI Healthcare'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 DRI Healthcare 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 DRI Healthcare'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.
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 DRI Healthcare'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.
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 DRI Healthcare's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards DRI Healthcare in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find DRI Healthcare's degree of accounting gimmicks and manipulations.
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
51.75 Million
At present, DRI Healthcare's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.
About DRI Healthcare Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze DRI Healthcare Trust's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of DRI Healthcare using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of DRI Healthcare Trust 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.
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if DRI Healthcare position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in DRI Healthcare will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to DRI Healthcare could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DRI Healthcare when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DRI Healthcare - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DRI Healthcare Trust to buy it.
The correlation of DRI Healthcare is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DRI Healthcare moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DRI Healthcare Trust moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for DRI Healthcare can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
DRI Healthcare financial ratios help investors to determine whether DRI Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in DRI with respect to the benefits of owning DRI Healthcare security.