Alternative Energy Stock Beneish M Score
| AEGY Stock | USD 0.0001 0.00 0.00% |
Alternative | Beneish M Score |
At this time, it appears that Alternative Energy is an unlikely manipulator. The earnings manipulation may begin if Alternative Energy'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 Alternative Energy 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 Alternative Energy'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.
-4.84
Beneish M Score - Unlikely Manipulator
Alternative Energy 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 Alternative Energy'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 Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
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| Selling General Administrative | 223.2 K | 235 K |
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| Total Current Liabilities | 3.4 M | 3.3 M |
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Alternative Energy 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 Alternative Energy's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Alternative Energy in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Alternative Energy's degree of accounting gimmicks and manipulations.
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About Alternative Energy 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.
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About Alternative Energy Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Alternative Energy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Alternative Energy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Alternative Energy 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 running Alternative Energy's price analysis, check to measure Alternative Energy's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Alternative Energy is operating at the current time. Most of Alternative Energy's value examination focuses on studying past and present price action to predict the probability of Alternative Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Alternative Energy's price. Additionally, you may evaluate how the addition of Alternative Energy to your portfolios can decrease your overall portfolio volatility.