Life360, Common Stock Stock Beneish M Score

LIF Stock   42.47  0.24  0.57%   
This module uses fundamental data of Life360, Common to approximate the value of its Beneish M Score. Life360, Common 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 Life360, Common Piotroski F Score and Life360, Common Altman Z Score analysis.
  
At this time, Life360, Common's Net Debt To EBITDA is most likely to increase slightly in the upcoming years. The Life360, Common's current Debt To Equity is estimated to increase to 0.04, while Long Term Debt is projected to decrease to roughly 1 M. At this time, Life360, Common's Capex To Operating Cash Flow is most likely to increase slightly in the upcoming years. The Life360, Common's current Intangibles To Total Assets is estimated to increase to 0.58, while Capex To Depreciation is projected to decrease to 0.21.
At this time, it appears that Life360, Common Stock is an unlikely manipulator. The earnings manipulation may begin if Life360, Common'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 Life360, Common 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 Life360, Common'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.
-3.3
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.96

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.09

Focus
Gross Margin Strengs

1.14

Focus
Accruals Factor

1.09

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

0.66

Focus
Financial Leverage Condition

-0.94

Focus

Life360, Common 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 Life360, Common'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 Receivables26.4 M42.2 M
Way Down
Slightly volatile
Total Revenue199.7 M304.5 M
Way Down
Slightly volatile
Total Assets288.8 M321.7 M
Moderately Down
Slightly volatile
Total Current Assets167.6 M131.4 M
Significantly Up
Slightly volatile
Non Current Assets Total121.1 M190.3 M
Way Down
Slightly volatile
Depreciation And Amortization10.6 M10 M
Notably Up
Slightly volatile
Selling General Administrative37.5 M52.6 M
Way Down
Slightly volatile
Total Current Liabilities60.3 M70.8 M
Fairly Down
Slightly volatile
Non Current Liabilities Total6.7 M3.8 M
Way Up
Slightly volatile
Short Term Debt4.2 M3.8 M
Moderately Up
Slightly volatile
Long Term DebtM1.1 M
Notably Down
Slightly volatile
Gross Profit Margin0.830.7311
Moderately Up
Slightly volatile

Life360, Common Stock 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 Life360, Common's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Life360, Common in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Life360, Common's degree of accounting gimmicks and manipulations.

About Life360, Common 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.

Other Operating Expenses

247.34 Million

At this time, Life360, Common's Other Operating Expenses is most likely to increase significantly in the upcoming years.

About Life360, Common Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Life360, Common Stock's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Life360, Common using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Life360, Common Stock 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.

Currently Active Assets on Macroaxis

When determining whether Life360, Common Stock is a strong investment it is important to analyze Life360, Common's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Life360, Common's future performance. For an informed investment choice regarding Life360, Stock, refer to the following important reports:
Check out Life360, Common Piotroski F Score and Life360, Common Altman Z Score analysis.
You can also try the Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Is Application Software space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Life360, Common. If investors know Life360, will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Life360, Common listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.22)
Revenue Per Share
1.625
Quarterly Revenue Growth
0.181
Return On Assets
(0.02)
Return On Equity
(0.06)
The market value of Life360, Common Stock is measured differently than its book value, which is the value of Life360, that is recorded on the company's balance sheet. Investors also form their own opinion of Life360, Common's value that differs from its market value or its book value, called intrinsic value, which is Life360, Common's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Life360, Common's market value can be influenced by many factors that don't directly affect Life360, Common's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Life360, Common's value and its price as these two are different measures arrived at by different means. Investors typically determine if Life360, Common is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Life360, Common's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.