Eco Oil Gas Stock Beneish M Score

ECO Stock   9.70  0.28  2.81%   
This module uses fundamental data of Eco Oil to approximate the value of its Beneish M Score. Eco Oil 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 Eco Oil Gas. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
  
The current year's Net Debt is expected to grow to about (1 M). In addition to that, Short Term Debt is expected to decline to about 19.7 K.
At this time, Eco Oil's M Score is inapplicable. The earnings manipulation may begin if Eco Oil'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 Eco Oil 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 Eco Oil'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.
3290.18
Beneish M Score - Inapplicable
Elasticity of Receivables

0.00494

Focus
Asset Quality

64.58

Focus
Expense Coverage

0.076

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.076

Focus
Depreciation Resistance

28521.31

Focus
Net Sales Growth

49.62

Focus
Financial Leverage Condition

16.93

Focus

Eco Oil 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 Eco Oil'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 Receivables28.2 K115.1 K
Way Down
Pretty Stable
Total Assets1.1 M31.3 M
Way Down
Slightly volatile
Total Current Assets1.1 M3.1 M
Way Down
Very volatile
Non Current Assets Total5.6 K28.2 M
Way Down
Slightly volatile
Property Plant Equipment49.3 M47 M
Sufficiently Up
Slightly volatile
Selling General AdministrativeM1.3 M
Way Up
Slightly volatile
Total Current Liabilities38.8 K1.2 M
Way Down
Slightly volatile
Short Term Investments14.3 K15.1 K
Notably Down
Very volatile

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

About Eco Oil 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

455.93

At present, Eco Oil's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Eco Oil 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 Eco Oil. 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 Receivables65.6K262.8K285.4K2.0M115.1K28.2K
Total Assets19.9M16.9M45.9M55.6M31.3M1.1M
Total Current Assets18.8M13.6M5.8M6.2M3.1M1.1M
Non Current Assets Total1.1M3.3M40.0M49.5M28.2M5.6K
Depreciation And Amortization(747.1K)24.2K(1.3M)(1.8M)16.8M455.93
Total Current Liabilities350.4K621.2K5.6M5.0M1.2M38.8K
Non Current Liabilities Total740.7K350.4K325.9K1.9M0.045.5K
Net Debt(18.7M)(11.5M)(3.4M)(4.1M)(3.0M)(1.0M)
Short Term Debt0.281.052.8K23.0K20.7K19.7K
Short Term Investments52.8K1.6M52.6K13.1K15.1K14.3K

About Eco Oil Fundamental Analysis

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

Eco Oil financial ratios help investors to determine whether Eco 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 Eco with respect to the benefits of owning Eco Oil security.