La Rosa Holdings Stock Beneish M Score

LRHC Stock   0.68  0.09  11.69%   
This module uses fundamental data of La Rosa to approximate the value of its Beneish M Score. La Rosa 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 La Rosa Piotroski F Score and La Rosa Altman Z Score analysis.
  
At present, La Rosa's Short Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Debt To Equity is expected to grow to 0.13, whereas Short and Long Term Debt Total is forecasted to decline to about 1.2 M. At present, La Rosa's PTB Ratio is projected to increase significantly based on the last few years of reporting. The current year's Days Sales Outstanding is expected to grow to 9.97, whereas Dividend Yield is forecasted to decline to 0.
At this time, La Rosa's M Score is unavailable. The earnings manipulation may begin if La Rosa'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 La Rosa 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 La Rosa'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.
-4.97
Beneish M Score - Unavailable
Elasticity of Receivables

0.64

Focus
Asset Quality

N/A

Focus
Expense Coverage

0.79

Focus
Gross Margin Strengs

1.23

Focus
Accruals Factor

0.79

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.14

Focus
Financial Leverage Condition

1.43

Focus

La Rosa 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 La Rosa'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 Receivables605 K826.4 K
Way Down
Slightly volatile
Total Revenue36.1 M31.8 M
Fairly Up
Slightly volatile
Total Assets15 M14.3 M
Sufficiently Up
Slightly volatile
Total Current Assets2.5 M3.3 M
Way Down
Slightly volatile
Non Current Assets Total11.6 M11.1 M
Sufficiently Up
Slightly volatile
Selling General Administrative8.5 M9.5 M
Moderately Down
Slightly volatile
Total Current LiabilitiesM2.1 M
Significantly Up
Slightly volatile
Non Current Liabilities TotalM2.5 M
Significantly Down
Slightly volatile
Net Debt714.8 K363.5 K
Way Up
Slightly volatile
Short Term Debt726.3 K685.5 K
Notably Up
Slightly volatile
Long Term Debt474.1 K615.1 K
Significantly Down
Slightly volatile
Gross Profit Margin0.110.0895
Fairly Up
Slightly volatile

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

About La Rosa 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

76,790.7

At present, La Rosa's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

About La Rosa Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze La Rosa Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of La Rosa using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of La Rosa Holdings 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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When determining whether La Rosa Holdings offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of La Rosa's financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of La Rosa Holdings Stock. Outlined below are crucial reports that will aid in making a well-informed decision on La Rosa Holdings Stock:
Check out La Rosa Piotroski F Score and La Rosa Altman Z Score analysis.
You can also try the Transaction History module to view history of all your transactions and understand their impact on performance.
Is Office REITs 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 La Rosa. If investors know LRHC 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 La Rosa listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(1.68)
Revenue Per Share
4.409
Quarterly Revenue Growth
1.545
Return On Assets
(0.70)
Return On Equity
(2.96)
The market value of La Rosa Holdings is measured differently than its book value, which is the value of LRHC that is recorded on the company's balance sheet. Investors also form their own opinion of La Rosa's value that differs from its market value or its book value, called intrinsic value, which is La Rosa'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 La Rosa's market value can be influenced by many factors that don't directly affect La Rosa'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 La Rosa's value and its price as these two are different measures arrived at by different means. Investors typically determine if La Rosa is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, La Rosa'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.