Ashford Hospitality Trust Stock Beneish M Score

AHT Stock  USD 8.83  0.02  0.23%   
This module uses fundamental data of Ashford Hospitality to approximate the value of its Beneish M Score. Ashford Hospitality 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 Ashford Hospitality Piotroski F Score and Ashford Hospitality Altman Z Score analysis.
  
At this time, Ashford Hospitality's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt To EBITDA is likely to gain to 13.06 in 2024, whereas Net Debt is likely to drop slightly above 2.5 B in 2024. At this time, Ashford Hospitality's EV To Free Cash Flow is comparatively stable compared to the past year. Net Debt To EBITDA is likely to gain to 13.06 in 2024, whereas PTB Ratio is likely to drop (2.48) in 2024.
At this time, it appears that Ashford Hospitality Trust is a possible manipulator. The earnings manipulation may begin if Ashford Hospitality'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 Ashford Hospitality 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 Ashford Hospitality'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.
-1.33
Beneish M Score - Possible Manipulator
Elasticity of Receivables

2.25

Focus
Asset Quality

0.88

Focus
Expense Coverage

1.91

Focus
Gross Margin Strengs

1.6

Focus
Accruals Factor

1.91

Focus
Depreciation Resistance

0.74

Focus
Net Sales Growth

0.64

Focus
Financial Leverage Condition

0.82

Focus

Ashford Hospitality 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 Ashford Hospitality'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 Receivables65.2 M45.5 M
Way Up
Slightly volatile
Total Revenue872.1 M1.4 B
Way Down
Slightly volatile
Total Assets3.2 B3.5 B
Significantly Down
Slightly volatile
Non Current Assets Total3.1 BB
Fairly Up
Slightly volatile
Depreciation And Amortization226.7 M187.8 M
Fairly Up
Slightly volatile
Selling General Administrative19.7 M16.2 M
Fairly Up
Slightly volatile
Total Current Liabilities160.9 M194.9 M
Significantly Down
Slightly volatile
Non Current Liabilities Total2.7 B3.5 B
Significantly Down
Slightly volatile
Net Debt2.5 B3.3 B
Way Down
Slightly volatile
Short Term Debt47.2 M49.7 M
Notably Down
Pretty Stable
Long Term Debt2.6 B3.4 B
Way Down
Slightly volatile
Short Term Investments13 M13.7 M
Notably Down
Pretty Stable
Long Term Investments9.5 M10 M
Notably Down
Slightly volatile

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

About Ashford Hospitality 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

818.47 Million

At this time, Ashford Hospitality's Other Operating Expenses is comparatively stable compared to the past year.

Ashford Hospitality 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 Ashford Hospitality. 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 Receivables67.7M45.2M80.8M84.4M45.5M65.2M
Total Revenue1.5B508.2M805.4M1.2B1.4B872.1M
Total Assets4.7B3.7B4.1B3.9B3.5B3.2B
Total Current Assets506.8M233.4M789.2M663.3M414.7M478.2M
Net Debt3.9B3.7B3.3B3.5B3.3B2.5B
Short Term Debt3.3B2.9B3.3B63.5M49.7M47.2M
Long Term Debt4.1B3.7B3.9B3.8B3.4B2.6B
Operating Income114.7M(465.4M)(138.8M)76.3M130.4M137.0M
Investments11.1M(7.6M)(9M)(5.1M)(107.9M)(102.5M)

Ashford Hospitality ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Ashford Hospitality's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ashford Hospitality's managers, analysts, and investors.
Environmental
Governance
Social

About Ashford Hospitality Fundamental Analysis

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

When running Ashford Hospitality's price analysis, check to measure Ashford Hospitality'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 Ashford Hospitality is operating at the current time. Most of Ashford Hospitality's value examination focuses on studying past and present price action to predict the probability of Ashford Hospitality's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Ashford Hospitality's price. Additionally, you may evaluate how the addition of Ashford Hospitality to your portfolios can decrease your overall portfolio volatility.