Diversified United Investment Stock Beneish M Score

DUI Stock   5.31  0.01  0.19%   
This module uses fundamental data of Diversified United to approximate the value of its Beneish M Score. Diversified United 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 Diversified United Investment. 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, Diversified United's Long Term Debt is comparatively stable compared to the past year. Long Term Debt Total is likely to gain to about 106.7 M in 2024, whereas Net Debt is likely to drop slightly above 44.9 M in 2024.
At this time, Diversified United's M Score is inapplicable. The earnings manipulation may begin if Diversified United'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 Diversified United 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 Diversified United'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.
-1.87
Beneish M Score - Inapplicable
Elasticity of Receivables

3.14

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.95

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.95

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.54

Focus
Financial Leverage Condition

0.63

Focus

Diversified United 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 Diversified United'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 Receivables5.3 M3.2 M
Way Up
Pretty Stable
Total Assets1.4 B1.3 B
Sufficiently Up
Slightly volatile
Total Current Assets19.7 M12 M
Way Up
Very volatile
Non Current Assets Total1.4 B1.3 B
Sufficiently Up
Slightly volatile
Selling General Administrative812.1 K1.6 M
Way Down
Slightly volatile
Total Current Liabilities830.3 K874 K
Notably Down
Pretty Stable
Non Current Liabilities Total553.7 M527.4 M
Sufficiently Up
Slightly volatile
Long Term Debt81 M77.5 M
Sufficiently Up
Slightly volatile
Operating Income26.7 M44.9 M
Way Down
Slightly volatile
Total Cash From Operating Activities37.4 M36.8 M
Fairly Up
Slightly volatile
Long Term Investments1.1 B1.3 B
Fairly Down
Slightly volatile

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

About Diversified United 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

(47.15 Million)

At this time, Diversified United's Depreciation And Amortization is comparatively stable compared to the past year.

Diversified United 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 Diversified United. 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 Receivables655K2.1M2.4M3.1M3.2M5.3M
Total Revenue33.5M36.7M55.0M45.5M46.5M25.0M
Total Assets1.0B1.3B1.2B1.3B1.3B1.4B
Total Current Assets38.2M14.8M11.5M10.9M12.0M19.7M
Net Debt39.4M112.3M140.0M80.2M67.8M44.9M
Operating Income35.5M37.8M47.8M51.4M44.9M26.7M
Investments(22.0M)(70.7M)(58.0M)35.1M17.7M18.6M

About Diversified United Fundamental Analysis

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

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