Torm Plc Class Stock Beneish M Score

TRMD Stock  USD 20.94  0.15  0.71%   
This module uses fundamental data of Torm PLC to approximate the value of its Beneish M Score. Torm PLC 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 Torm PLC Piotroski F Score and Torm PLC Altman Z Score analysis.
  
At present, Torm PLC's Net Debt is projected to decrease significantly based on the last few years of reporting. The current year's Short Term Debt is expected to grow to about 221.5 M, whereas Short and Long Term Debt is forecasted to decline to about 112.7 M. At present, Torm PLC's Dividend Yield is projected to slightly decrease based on the last few years of reporting. The current year's PTB Ratio is expected to grow to 1.90, whereas Book Value Per Share is forecasted to decline to 18.26.
At this time, it appears that Torm PLC Class is an unlikely manipulator. The earnings manipulation may begin if Torm PLC'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 Torm PLC 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 Torm PLC'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.
-3.14
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.97

Focus
Asset Quality

0.0613

Focus
Expense Coverage

1.02

Focus
Gross Margin Strengs

0.53

Focus
Accruals Factor

1.02

Focus
Depreciation Resistance

1.07

Focus
Net Sales Growth

0.53

Focus
Financial Leverage Condition

1.76

Focus

Torm PLC 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 Torm PLC'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
Total Revenue809.6 M1.5 B
Way Down
Pretty Stable
Total AssetsB2.9 B
Way Down
Slightly volatile
Total Current Assets725.9 M691.3 M
Sufficiently Up
Slightly volatile
Non Current Assets Total1.9 B2.2 B
Fairly Down
Slightly volatile
Property Plant Equipment1.6 B2.1 B
Way Down
Slightly volatile
Depreciation And Amortization106 M149.3 M
Way Down
Slightly volatile
Selling General Administrative45 M82.9 M
Way Down
Pretty Stable
Total Current Liabilities323.8 M265.5 M
Fairly Up
Pretty Stable
Non Current Liabilities Total910.9 M938.7 M
Sufficiently Down
Very volatile
Net Debt991.2 M794.1 M
Fairly Up
Slightly volatile
Short Term Debt221.5 M172.7 M
Significantly Up
Pretty Stable
Long Term Debt754.4 M886.9 M
Fairly Down
Slightly volatile
Long Term Investments73.2 K77 K
Notably Down
Pretty Stable
Gross Profit Margin0.330.6188
Way Down
Slightly volatile

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

About Torm PLC 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

106.01 Million

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

Torm PLC 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 Torm PLC. 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 Receivables95.5M58.6M84.0M259.5M219M230.0M
Total Revenue692.6M747.4M619.5M1.4B1.5B809.6M
Total Assets2.0B2.0B2.3B2.6B2.9B2.0B
Total Current Assets215.9M243.7M363.3M739.7M691.3M725.9M
Net Debt782.9M752.9M963.7M646.4M794.1M991.2M
Short Term Debt99.0M102.9M209M117.1M172.7M221.5M
Long Term Debt756.4M739.5M926.4M849.8M886.9M754.4M
Operating Income90.8M138.9M6.2M601.4M698.6M733.5M
Investments(322.8M)(119.8M)(290.6M)11.3M(370.6M)(352.0M)
Gross Profit Margin0.370.450.530.40.590.62

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

About Torm PLC Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Torm PLC Class's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Torm PLC using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Torm PLC Class 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 Torm PLC Class is a strong investment it is important to analyze Torm PLC's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Torm PLC's future performance. For an informed investment choice regarding Torm Stock, refer to the following important reports:
Check out Torm PLC Piotroski F Score and Torm PLC Altman Z Score analysis.
You can also try the Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Is Oil & Gas Storage & Transportation 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 Torm PLC. If investors know Torm 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 Torm PLC 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
(0.05)
Dividend Share
5.86
Earnings Share
8.08
Revenue Per Share
18.109
Quarterly Revenue Growth
0.039
The market value of Torm PLC Class is measured differently than its book value, which is the value of Torm that is recorded on the company's balance sheet. Investors also form their own opinion of Torm PLC's value that differs from its market value or its book value, called intrinsic value, which is Torm PLC'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 Torm PLC's market value can be influenced by many factors that don't directly affect Torm PLC'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 Torm PLC's value and its price as these two are different measures arrived at by different means. Investors typically determine if Torm PLC is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Torm PLC'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.