| JSWHL Stock | | | 14,145 260.95 1.88% |
This module uses fundamental data of JSW Holdings to approximate the value of its Beneish M Score. JSW Holdings 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
Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in JSW Holdings Limited. 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 the 30th of November 2024,
Net Debt is likely to grow to about (38.8
M). In addition to that,
Short and Long Term Debt Total is likely to drop to about 37.1
M.
At this time, JSW Holdings' M Score is inapplicable. The earnings manipulation may begin if JSW Holdings' 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 JSW Holdings 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 JSW Holdings' 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.
-2.8
Beneish M Score - Inapplicable
| Elasticity of Receivables | |
| Financial Leverage Condition | |
JSW Holdings 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 JSW Holdings' 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.
JSW Holdings Limited 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 JSW Holdings' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards JSW Holdings in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find JSW Holdings' degree of accounting gimmicks and manipulations.
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About JSW Holdings 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.
JSW Holdings 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 JSW Holdings. 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.
About JSW Holdings Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze JSW Holdings Limited's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of JSW Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of JSW Holdings Limited 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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Other Information on Investing in JSW Stock
JSW Holdings financial ratios help investors to determine whether JSW 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 JSW with respect to the benefits of owning JSW Holdings security.