This module uses fundamental data of Serco to approximate the value of its Beneish M Score. Serco 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 World Market Map to better understand how to build diversified portfolios, which includes a position in Serco Group. 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.
Serco
Beneish M Score
Change To Inventory
Change In Cash
Free Cash Flow
Change In Working Capital
Begin Period Cash Flow
Other Cashflows From Financing Activities
Depreciation
Other Non Cash Items
Capital Expenditures
Total Cash From Operating Activities
Net Income
Total Cash From Financing Activities
End Period Cash Flow
Other Cashflows From Investing Activities
Sale Purchase Of Stock
Dividends Paid
Stock Based Compensation
Change To Account Receivables
Investments
Net Borrowings
Total Cashflows From Investing Activities
Change To Netincome
Change To Liabilities
Total Assets
Other Current Liab
Total Current Liabilities
Total Stockholder Equity
Property Plant And Equipment Net
Retained Earnings
Accounts Payable
Non Current Assets Total
Cash And Short Term Investments
Common Stock Shares Outstanding
Short Term Investments
Liabilities And Stockholders Equity
Non Current Liabilities Total
Inventory
Other Current Assets
Total Liab
Property Plant And Equipment Gross
Total Current Assets
Short Long Term Debt Total
Net Debt
Cash
Non Currrent Assets Other
Common Stock Total Equity
Other Stockholder Equity
Short Term Debt
Common Stock
Accumulated Other Comprehensive Income
Intangible Assets
Other Liab
Other Assets
Long Term Debt
Net Receivables
Good Will
Property Plant Equipment
Current Deferred Revenue
Treasury Stock
Net Tangible Assets
Deferred Long Term Liab
Long Term Investments
Short Long Term Debt
Capital Surpluse
Capital Lease Obligations
Net Invested Capital
Net Working Capital
Capital Stock
Depreciation And Amortization
Interest Expense
Total Revenue
Gross Profit
Other Operating Expenses
Operating Income
Ebit
Ebitda
Total Operating Expenses
Income Before Tax
Total Other Income Expense Net
Income Tax Expense
Cost Of Revenue
Selling General Administrative
Net Income Applicable To Common Shares
Minority Interest
Research Development
Discontinued Operations
Net Income From Continuing Ops
Tax Provision
Net Interest Income
Interest Income
Reconciled Depreciation
Probability Of Bankruptcy
At present, Serco's Short Term Debt is projected to increase significantly based on the last few years of reporting.
At this time, Serco's M Score is inapplicable. The earnings manipulation may begin if Serco'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 Serco 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 Serco'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.
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 Serco'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.
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 Serco's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Serco in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Serco's degree of accounting gimmicks and manipulations.
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
181.86 Million
At present, Serco's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.
Serco 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 Serco. 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.
The Macroaxis Fundamental Analysis modules help investors analyze Serco Group's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Serco using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Serco Group 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.
Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.
Serco financial ratios help investors to determine whether Serco 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 Serco with respect to the benefits of owning Serco security.