Great Elm Capital Stock Beneish M Score

GECC Stock  USD 10.28  0.04  0.39%   
This module uses fundamental data of Great Elm to approximate the value of its Beneish M Score. Great Elm 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 Great Elm Piotroski F Score and Great Elm Altman Z Score analysis.
  
At present, Great Elm's Long Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 1.49, whereas Short and Long Term Debt Total is forecasted to decline to about 88.6 M. At present, Great Elm's Free Cash Flow Yield is projected to slightly decrease based on the last few years of reporting. The current year's Operating Cash Flow Per Share is expected to grow to 3.55, whereas Price To Sales Ratio is forecasted to decline to 2.15.
At this time, it appears that Great Elm Capital is an unlikely manipulator. The earnings manipulation may begin if Great Elm'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 Great Elm 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 Great Elm'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.
-2.25
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.18

Focus
Asset Quality

1.02

Focus
Expense Coverage

0.77

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

0.77

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.12

Focus

Great Elm 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 Great Elm'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 Receivables4.9 MM
Fairly Up
Pretty Stable
Total Assets229.2 M246.8 M
Significantly Down
Slightly volatile
Total Current Assets4.7 M4.9 M
Notably Down
Pretty Stable
Non Current Assets Total217 M241.4 M
Moderately Down
Slightly volatile
Property Plant Equipment1.6 M1.5 M
Sufficiently Up
Slightly volatile
Selling General Administrative3.7 M4.6 M
Significantly Down
Very volatile
Total Current Liabilities11.6 M12.2 M
Notably Down
Slightly volatile
Non Current Liabilities Total77.3 M140.2 M
Way Down
Slightly volatile
Short Term Debt73.2 M140.2 M
Way Down
Slightly volatile
Long Term Debt172.9 M164.6 M
Sufficiently Up
Slightly volatile
Short Term Investments10.3 M10.8 M
Notably Down
Slightly volatile
Long Term Investments234.8 M241.4 M
Fairly Down
Slightly volatile

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

About Great Elm 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

13.43 Million

At present, Great Elm's Depreciation And Amortization is projected to decrease significantly based on the last few years of reporting.

Great Elm 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 Great Elm. 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 Receivables3.0M3.3M4.3M4.9M4.0M4.9M
Total Revenue(4.8M)(28.9M)(6.6M)(16.1M)35.8M37.6M
Total Assets291.0M283.3M426.3M310.1M246.8M229.2M
Total Current Assets7.6M55.8M13.4M5.5M4.9M4.7M
Net Debt115.2M63.1M132.9M152.6M139.3M146.2M
Short Term Debt119.8M115.7M142.0M153.2M140.2M73.2M
Long Term Debt31.2M76.3M119.8M143.2M164.6M172.9M
Operating Income(7.3M)(31.9M)(10.2M)(15.3M)24.6M25.8M
Gross Profit Margin2.411.150.940.990.760.8

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

About Great Elm Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Great Elm Capital's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Great Elm using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Great Elm Capital 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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When determining whether Great Elm Capital offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Great Elm's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Great Elm Capital Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Great Elm Capital Stock:
Check out Great Elm Piotroski F Score and Great Elm Altman Z Score analysis.
You can also try the Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Is Asset Management & Custody 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 Great Elm. If investors know Great 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 Great Elm 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
(0.67)
Dividend Share
1.4
Earnings Share
0.74
Revenue Per Share
4.352
Quarterly Revenue Growth
0.276
The market value of Great Elm Capital is measured differently than its book value, which is the value of Great that is recorded on the company's balance sheet. Investors also form their own opinion of Great Elm's value that differs from its market value or its book value, called intrinsic value, which is Great Elm'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 Great Elm's market value can be influenced by many factors that don't directly affect Great Elm'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 Great Elm's value and its price as these two are different measures arrived at by different means. Investors typically determine if Great Elm is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Great Elm'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.