PMAX Stock | | | 3.07 0.03 0.97% |
This module uses fundamental data of Powell Max to approximate the value of its Beneish M Score. Powell Max 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
Powell Max Piotroski F Score and
Powell Max Altman Z Score analysis.
Net Debt is likely to rise to about 2.1
M in 2024, whereas
Short and Long Term Debt is likely to drop slightly above 4.1
M in 2024.
At this time, it appears that Powell Max Limited is an unlikely manipulator. The earnings manipulation may begin if Powell Max'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 Powell Max 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 Powell Max'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.
-4.08
Beneish M Score - Unlikely Manipulator
| Elasticity of Receivables | 0.89 | Focus |
| Expense Coverage | 0.83 | Focus |
| Gross Margin Strengs | N/A | Focus |
| Depreciation Resistance | N/A | Focus |
| Net Sales Growth | 0.97 | Focus |
| Financial Leverage Condition | 0.82 | Focus |
Powell Max 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 Powell Max'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.
Powell Max 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 Powell Max's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Powell Max in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Powell Max's degree of accounting gimmicks and manipulations.
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About Powell Max Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Powell Max Limited's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Powell Max using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Powell Max 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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