This module uses fundamental data of American Lithium to approximate the value of its Beneish M Score. American Lithium 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
Trending Equities to better understand how to build diversified portfolios. 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.
As of now, American Lithium's
Total Debt To Capitalization is increasing as compared to previous years. The American Lithium's current
Debt Equity Ratio is estimated to increase to 0.001, while
Net Debt is forecasted to increase to (10
M). As of now, American Lithium's
Debt To Equity is increasing as compared to previous years. The American Lithium's current
Graham Net Net is estimated to increase to 0.05, while
Price To Sales Ratio is projected to decrease to 968.23.
At this time, it appears that American Lithium Corp is an unlikely manipulator. The earnings manipulation may begin if American Lithium'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 American Lithium 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 American Lithium'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.
-4.9
Beneish M Score - Unlikely Manipulator
| Elasticity of Receivables | |
| Financial Leverage Condition | |
American Lithium 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 American Lithium'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.
American Lithium 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 American Lithium's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards American Lithium in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find American Lithium's degree of accounting gimmicks and manipulations.
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About American Lithium 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.
About American Lithium Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze American Lithium Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Lithium using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of American Lithium 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.
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When determining whether American Lithium Corp
offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Lithium'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 American Lithium Corp Stock.
Outlined below are crucial reports that will aid in making a well-informed decision on American Lithium Corp Stock: Check out
Trending Equities to better understand how to build diversified portfolios. 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.
You can also try the
ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Is Diversified Metals & Mining 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 American Lithium. If investors know American 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 American Lithium listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share | Return On Assets | Return On Equity |
The market value of American Lithium Corp is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Lithium's value that differs from its market value or its book value, called intrinsic value, which is American Lithium'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 American Lithium's market value can be influenced by many factors that don't directly affect American Lithium'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 American Lithium's value and its price as these two are different measures arrived at by different means. Investors typically determine
if American Lithium is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Lithium'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.