Majic Wheels Corp Stock Beneish M Score
| MJWL Stock | USD 0.0001 0.00 0.000003% |
Majic | Beneish M Score |
At this time, it appears that Majic Wheels Corp is an unlikely manipulator. The earnings manipulation may begin if Majic Wheels' 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 Majic Wheels 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 Majic Wheels' 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.
-4.72
Beneish M Score - Unlikely Manipulator
Majic Wheels 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 Majic Wheels' 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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Depreciation And Amortization | 807.2 K | 768.7 K |
|
| |||||
| Selling General Administrative | 854.6 K | 813.9 K |
|
| |||||
| Total Current Liabilities | 2.6 M | 2.4 M |
|
|
Majic Wheels 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 Majic Wheels' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Majic Wheels in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Majic Wheels' degree of accounting gimmicks and manipulations.
Click cells to compare fundamentals
Did you try this?
Run Portfolio Analyzer Now
Portfolio AnalyzerPortfolio analysis module that provides access to portfolio diagnostics and optimization engine |
| All Next | Launch Module |
About Majic Wheels Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Majic Wheels Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Majic Wheels using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Majic Wheels 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.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectCheck out Majic Wheels Piotroski F Score and Majic Wheels Altman Z Score analysis. You can also try the Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
Is Environmental & Facilities Services 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 Majic Wheels. If investors know Majic 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 Majic Wheels listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of Majic Wheels Corp is measured differently than its book value, which is the value of Majic that is recorded on the company's balance sheet. Investors also form their own opinion of Majic Wheels' value that differs from its market value or its book value, called intrinsic value, which is Majic Wheels' 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 Majic Wheels' market value can be influenced by many factors that don't directly affect Majic Wheels' 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 Majic Wheels' value and its price as these two are different measures arrived at by different means. Investors typically determine if Majic Wheels is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Majic Wheels' 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.