Ashley Services Group Stock Beneish M Score

ASH Stock   0.18  0.01  5.26%   
This module uses fundamental data of Ashley Services to approximate the value of its Beneish M Score. Ashley Services 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, which includes a position in Ashley Services Group. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
At this time, Ashley Services' Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 16.2 M in 2024, whereas Short Term Debt is likely to drop slightly above 8.7 M in 2024.
At this time, Ashley Services' M Score is inapplicable. The earnings manipulation may begin if Ashley Services' 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 Ashley Services 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 Ashley Services' 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.
-2.62
Beneish M Score - Inapplicable
Elasticity of Receivables

1.27

Focus
Asset Quality

1.48

Focus
Expense Coverage

1.82

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.82

Focus
Depreciation Resistance

1.47

Focus
Net Sales Growth

0.58

Focus
Financial Leverage Condition

0.41

Focus

Ashley Services 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 Ashley Services' 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 Receivables33.5 M45.7 M
Way Down
Slightly volatile
Total Revenue322 M556.5 M
Way Down
Slightly volatile
Total Assets165 M90.1 M
Way Up
Slightly volatile
Total Current Assets68.1 M52.3 M
Significantly Up
Pretty Stable
Non Current Assets Total25.1 M37.8 M
Way Down
Slightly volatile
Property Plant Equipment6.5 M6.9 M
Notably Down
Slightly volatile
Depreciation And Amortization2.1 M3.8 M
Way Down
Slightly volatile
Selling General Administrative561 M534.3 M
Sufficiently Up
Slightly volatile
Total Current Liabilities32.7 M50.4 M
Way Down
Pretty Stable
Non Current Liabilities Total7.4 M9.3 M
Significantly Down
Slightly volatile
Long Term Debt3.7 M3.9 M
Notably Down
Slightly volatile

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

About Ashley Services 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

2.08 Million

At this time, Ashley Services' Depreciation And Amortization is comparatively stable compared to the past year.

Ashley Services 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 Ashley Services. 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 Receivables27.5M38.2M55.0M58.9M45.7M33.5M
Total Revenue336.8M383.7M449.8M549.2M556.5M322.0M
Total Assets56.9M70.2M81.9M112.3M90.1M165.0M
Total Current Assets39.4M50.2M61.4M64.2M52.3M68.1M
Net Debt(6.1M)(174K)6.6M9.2M15.5M16.2M
Short Term Debt(2.9M)2.0M6.4M9.4M9.1M8.7M
Operating Income5.7M13.4M17.2M17.3M8.5M10.8M
Investments(5.4M)(3.2M)(2.8M)(14.7M)(3.8M)(4.0M)

About Ashley Services Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ashley Services Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ashley Services using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ashley Services Group 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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Additional Tools for Ashley Stock Analysis

When running Ashley Services' price analysis, check to measure Ashley Services' 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 Ashley Services is operating at the current time. Most of Ashley Services' value examination focuses on studying past and present price action to predict the probability of Ashley Services' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ashley Services' price. Additionally, you may evaluate how the addition of Ashley Services to your portfolios can decrease your overall portfolio volatility.