This module uses fundamental data of Definity Financial to approximate the value of its Beneish M Score. Definity Financial 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Definity Financial Corp. 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.
Definity
Beneish M Score
Price To Sales Ratio
Ptb Ratio
Book Value Per Share
Free Cash Flow Yield
Operating Cash Flow Per Share
Pb Ratio
Ev To Sales
Free Cash Flow Per Share
Roic
Net Income Per Share
Capex To Revenue
Cash Per Share
Pocfratio
Capex To Operating Cash Flow
Pfcf Ratio
Income Quality
Roe
Ev To Operating Cash Flow
Pe Ratio
Return On Tangible Assets
Ev To Free Cash Flow
Earnings Yield
Intangibles To Total Assets
Net Debt To E B I T D A
Current Ratio
Tangible Book Value Per Share
Graham Number
Shareholders Equity Per Share
Capex Per Share
Graham Net Net
Revenue Per Share
Enterprise Value Over E B I T D A
Price Earnings Ratio
Price Book Value Ratio
Price Earnings To Growth Ratio
Price To Operating Cash Flows Ratio
Price To Free Cash Flows Ratio
Pretax Profit Margin
Ebt Per Ebit
Operating Profit Margin
Effective Tax Rate
Company Equity Multiplier
Return On Capital Employed
Ebit Per Revenue
Quick Ratio
Dividend Paid And Capex Coverage Ratio
Net Income Per E B T
Cash Ratio
Operating Cash Flow Sales Ratio
Free Cash Flow Operating Cash Flow Ratio
Price To Book Ratio
Fixed Asset Turnover
Capital Expenditure Coverage Ratio
Price Cash Flow Ratio
Enterprise Value Multiple
Price Sales Ratio
Return On Assets
Asset Turnover
Net Profit Margin
Price Fair Value
Return On Equity
Investments
Change In Cash
Free Cash Flow
Change In Working Capital
Begin Period Cash Flow
Total Cashflows From Investing Activities
Other Cashflows From Financing Activities
Depreciation
Other Non Cash Items
Capital Expenditures
Total Cash From Operating Activities
Net Income
End Period Cash Flow
Other Cashflows From Investing Activities
Change To Netincome
Common Stock Shares Outstanding
Total Assets
Short Long Term Debt Total
Other Current Liab
Total Current Liabilities
Total Stockholder Equity
Other Liab
Net Tangible Assets
Property Plant And Equipment Net
Current Deferred Revenue
Net Debt
Retained Earnings
Accounts Payable
Cash
Non Current Assets Total
Non Currrent Assets Other
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Cash And Short Term Investments
Net Receivables
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Long Term Debt Total
Liabilities And Stockholders Equity
Non Current Liabilities Total
Other Current Assets
Other Stockholder Equity
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Total Current Assets
Accumulated Other Comprehensive Income
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Short Term Debt
Intangible Assets
Property Plant Equipment
Capital Lease Obligations
Inventory
Net Invested Capital
Long Term Investments
Capital Stock
Tax Provision
Depreciation And Amortization
Selling General Administrative
Total Revenue
Gross Profit
Other Operating Expenses
Operating Income
Ebit
Ebitda
Total Operating Expenses
Income Before Tax
Total Other Income Expense Net
Net Income Applicable To Common Shares
Income Tax Expense
Interest Income
Net Income From Continuing Ops
Probability Of Bankruptcy
At this time, Definity Financial's Short and Long Term Debt Total is very stable compared to the past year. As of the 26th of November 2024, Short and Long Term Debt is likely to grow to about 120 M, while Net Debt is likely to drop (306.2 M). At this time, Definity Financial's POCF Ratio is very stable compared to the past year. As of the 26th of November 2024, PFCF Ratio is likely to grow to 27.13, while Book Value Per Share is likely to drop 16.03.
At this time, Definity Financial's M Score is inapplicable. The earnings manipulation may begin if Definity Financial'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 Definity Financial 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 Definity Financial'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.
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 Definity Financial'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.
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 Definity Financial's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Definity Financial in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Definity Financial's degree of accounting gimmicks and manipulations.
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.
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 Definity Financial. 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.
The Macroaxis Fundamental Analysis modules help investors analyze Definity Financial Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Definity Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Definity Financial 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.
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 Definity Financial 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 Definity Financial will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Definity Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Definity Financial 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 Definity Financial - 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 Definity Financial Corp to buy it.
The correlation of Definity Financial 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 Definity Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Definity Financial Corp 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 Definity Financial 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.
Definity Financial financial ratios help investors to determine whether Definity 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 Definity with respect to the benefits of owning Definity Financial security.