American Security Resources Stock Beneish M Score

ARSC Stock  USD 0.0001  0.00  0.00%   
This module uses fundamental data of American Security to approximate the value of its Beneish M Score. American Security 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 American Security Piotroski F Score and American Security Altman Z Score analysis.
  
At present, American Security's Short Term Debt is projected to increase significantly based on the last few years of reporting. The current year's Debt To Assets is expected to grow to 14.46, whereas Long Term Debt is forecasted to decline to about 15.7 K. At present, American Security's Research And Ddevelopement To Revenue is projected to slightly decrease based on the last few years of reporting. The current year's Capex To Revenue is expected to grow to 0.36, whereas Days Sales Outstanding is forecasted to decline to 63.04.
At this time, it appears that American Security is an unlikely manipulator. The earnings manipulation may begin if American Security'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 American Security 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 American Security'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.
-3.11
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

N/A

Focus
Asset Quality

1.3

Focus
Expense Coverage

N/A

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

N/A

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

N/A

Focus
Financial Leverage Condition

0.75

Focus

American Security 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 American Security'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 Receivables50.456.7
Fairly Down
Slightly volatile
Total Assets6.2 M5.9 M
Sufficiently Up
Slightly volatile
Total Current Assets51.354.0
Notably Down
Slightly volatile
Property Plant Equipment816859
Notably Down
Slightly volatile
Selling General Administrative7.5 K7.9 K
Notably Down
Slightly volatile
Total Current Liabilities1.3 M1.7 M
Significantly Down
Pretty Stable
Short Term Debt694.5 K661.5 K
Sufficiently Up
Slightly volatile
Long Term Debt15.7 K16.5 K
Notably Down
Slightly volatile
Short Term Investments89.7 K158.7 K
Way Down
Slightly volatile
Long Term Investments3.5 M3.9 M
Fairly Down
Slightly volatile
Gross Profit Margin0.840.8
Sufficiently Up
Slightly volatile

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

About American Security 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

1,586.03

At present, American Security's Depreciation is projected to decrease significantly based on the last few years of reporting.

About American Security Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze American Security Resources's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of American Security using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of American Security Resources 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 American Security offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of American Security'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 American Security Resources Stock. Outlined below are crucial reports that will aid in making a well-informed decision on American Security Resources Stock:
Check out American Security Piotroski F Score and American Security Altman Z Score analysis.
You can also try the Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Is Application Software 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 American Security. If investors know American 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 American Security listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
The market value of American Security is measured differently than its book value, which is the value of American that is recorded on the company's balance sheet. Investors also form their own opinion of American Security's value that differs from its market value or its book value, called intrinsic value, which is American Security'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 American Security's market value can be influenced by many factors that don't directly affect American Security'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 American Security's value and its price as these two are different measures arrived at by different means. Investors typically determine if American Security is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, American Security'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.