Alimentation Couchen Tard Stock Beneish M Score

ATD Stock   82.47  3.38  4.27%   
This module uses fundamental data of Alimentation Couchen to approximate the value of its Beneish M Score. Alimentation Couchen 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 Alimentation Couchen Tard. 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, Alimentation Couchen's Short and Long Term Debt Total is very stable compared to the past year. As of the 28th of November 2024, Net Debt is likely to grow to about 13.8 B, while Long Term Debt is likely to drop about 7.1 B. At this time, Alimentation Couchen's EV To Sales is very stable compared to the past year. As of the 28th of November 2024, Free Cash Flow Per Share is likely to grow to 3.12, while Dividend Yield is likely to drop 0.
At this time, Alimentation Couchen's M Score is inapplicable. The earnings manipulation may begin if Alimentation Couchen'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 Alimentation Couchen 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 Alimentation Couchen'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.
-2.66
Beneish M Score - Inapplicable
Elasticity of Receivables

1.0

Focus
Asset Quality

1.22

Focus
Expense Coverage

0.61

Focus
Gross Margin Strengs

0.57

Focus
Accruals Factor

0.61

Focus
Depreciation Resistance

0.76

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Alimentation Couchen 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 Alimentation Couchen'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
Net Receivables3.3 B3.1 B
Sufficiently Up
Slightly volatile
Total Revenue72.7 B69.3 B
Sufficiently Up
Slightly volatile
Total Assets38.8 B36.9 B
Sufficiently Up
Slightly volatile
Total Current Assets7.9 B7.5 B
Sufficiently Up
Slightly volatile
Non Current Assets Total30.9 B29.5 B
Sufficiently Up
Slightly volatile
Property Plant Equipment13.6 B17.5 B
Significantly Down
Slightly volatile
Depreciation And Amortization1.9 B1.8 B
Sufficiently Up
Slightly volatile
Selling General Administrative4.7 B7.3 B
Way Down
Slightly volatile
Total Current Liabilities8.2 B7.8 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total16.6 B15.8 B
Sufficiently Up
Slightly volatile
Net Debt13.8 B13.2 B
Sufficiently Up
Slightly volatile
Short Term Debt1.6 B1.6 B
Sufficiently Up
Slightly volatile
Long Term Debt7.1 B9.2 B
Way Down
Slightly volatile
Operating IncomeB3.8 B
Sufficiently Up
Slightly volatile
Total Cash From Operating Activities5.1 B4.8 B
Sufficiently Up
Slightly volatile
Short Term Investments587.2 M559.2 M
Sufficiently Up
Slightly volatile
Long Term Investments311.9 M351.5 M
Fairly Down
Slightly volatile
Gross Profit Margin0.10.1747
Way Down
Slightly volatile

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

About Alimentation Couchen 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

1.85 Billion

At this time, Alimentation Couchen's Depreciation And Amortization is very stable compared to the past year.

Alimentation Couchen 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 Alimentation Couchen. 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 Receivables1.3B1.9B2.6B2.4B3.1B3.3B
Total Revenue54.1B45.8B62.8B71.9B69.3B72.7B
Total Assets25.7B28.4B29.6B29.0B36.9B38.8B
Total Current Assets6.4B7.1B7.3B5.7B7.5B7.9B
Net Debt6.7B6.6B7.3B8.6B13.2B13.8B
Short Term Debt597.8M1.5B426.8M438.8M1.6B1.6B
Long Term Debt7.5B5.3B6.0B5.9B9.2B7.1B
Operating Income3.2B3.7B3.7B4.2B3.8B4.0B

About Alimentation Couchen Fundamental Analysis

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

Pair Trading with Alimentation Couchen

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Alimentation Couchen position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Alimentation Couchen will appreciate offsetting losses from the drop in the long position's value.

Moving against Alimentation Stock

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The ability to find closely correlated positions to Alimentation Couchen could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Alimentation Couchen when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Alimentation Couchen - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Alimentation Couchen Tard to buy it.
The correlation of Alimentation Couchen is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Alimentation Couchen moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Alimentation Couchen Tard moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Alimentation Couchen can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Other Information on Investing in Alimentation Stock

Alimentation Couchen financial ratios help investors to determine whether Alimentation Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Alimentation with respect to the benefits of owning Alimentation Couchen security.