Welspun Corp Limited Stock Beneish M Score

WELCORP Stock   810.20  11.90  1.49%   
This module uses fundamental data of Welspun Corp to approximate the value of its Beneish M Score. Welspun Corp 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 Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Welspun Corp 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 persons.
  
At this time, Welspun Corp's Short and Long Term Debt Total is relatively stable compared to the past year. As of 12/30/2024, Net Debt is likely to grow to about 18.3 B, while Long Term Debt is likely to drop slightly above 12.4 B.
At this time, Welspun Corp's M Score is inapplicable. The earnings manipulation may begin if Welspun Corp'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 Welspun Corp 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 Welspun Corp'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.
-1.74
Beneish M Score - Inapplicable
Elasticity of Receivables

0.65

Focus
Asset Quality

1.37

Focus
Expense Coverage

0.9

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.9

Focus
Depreciation Resistance

0.83

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.31

Focus

Welspun Corp 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 Welspun Corp'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 Receivables12.4 B18 B
Way Down
Very volatile
Total Revenue182.1 B173.4 B
Sufficiently Up
Slightly volatile
Total Assets93.5 B118.5 B
Significantly Down
Very volatile
Total Current Assets49.6 B60.9 B
Significantly Down
Pretty Stable
Non Current Assets Total43.9 B57.6 B
Way Down
Pretty Stable
Property Plant Equipment26.3 B41.3 B
Way Down
Slightly volatile
Depreciation And Amortization2.7 B3.5 B
Significantly Down
Pretty Stable
Selling General Administrative1.5 B1.6 B
Notably Down
Slightly volatile
Total Current Liabilities34.2 B39.8 B
Fairly Down
Pretty Stable
Non Current Liabilities Total26.3 B21.4 B
Fairly Up
Slightly volatile
Net Debt18.3 B11.1 B
Way Up
Slightly volatile
Short Term Debt4.6 B2.9 B
Way Up
Pretty Stable
Long Term Debt12.4 B16.2 B
Way Down
Slightly volatile
Short Term Investments7.4 B6.5 B
Moderately Up
Very volatile
Long Term Investments1.5 B1.5 B
Sufficiently Up
Slightly volatile

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

About Welspun Corp 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

2.72 Billion

At this time, Welspun Corp's Depreciation And Amortization is relatively stable compared to the past year.

Welspun Corp 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 Welspun Corp. 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.
201920202021202220232024 (projected)
Net Receivables13.6B15.5B8.1B12.6B18.0B12.4B
Total Revenue97.6B61.5B63.3B97.6B173.4B182.1B
Total Assets79.4B65.2B91.7B153.4B118.5B93.5B
Total Current Assets57.4B40.9B43.2B96.5B60.9B49.6B
Net Debt6.2B6.6B10.1B23.5B11.1B18.3B
Short Term Debt5.0B3.9B6.1B14.0B2.9B4.6B
Long Term Debt5.1B4.4B14.3B19.3B16.2B12.4B
Operating Income10.3B5.5B2.4B2.3B41.7B43.7B
Investments(1.2B)(6.4B)(2.3B)(4.2B)3.7B3.9B

About Welspun Corp Fundamental Analysis

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

When running Welspun Corp's price analysis, check to measure Welspun Corp's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Welspun Corp is operating at the current time. Most of Welspun Corp's value examination focuses on studying past and present price action to predict the probability of Welspun Corp's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Welspun Corp's price. Additionally, you may evaluate how the addition of Welspun Corp to your portfolios can decrease your overall portfolio volatility.