| BGFV Stock | | | USD 1.70 0.04 2.41% |
This module uses fundamental data of Big 5 to approximate the value of its Beneish M Score. Big 5 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
Big 5 Piotroski F Score and
Big 5 Altman Z Score analysis.
At this time, Big 5's
Net Debt is fairly stable compared to the past year.
Long Term Debt is likely to climb to about 62.9
M in 2024, whereas
Short and Long Term Debt is likely to drop slightly above 38
M in 2024. At this time, Big 5's
Cash Per Share is fairly stable compared to the past year.
POCF Ratio is likely to climb to 11.08 in 2024, whereas
PTB Ratio is likely to drop 0.54 in 2024.
At this time, it appears that Big 5 Sporting is an unlikely manipulator. The earnings manipulation may begin if Big 5'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 Big 5 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 Big 5'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.
-2.56
Beneish M Score - Unlikely Manipulator
| Elasticity of Receivables | |
| Financial Leverage Condition | |
Big 5 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 Big 5'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.
Big 5 Sporting 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 Big 5's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Big 5 in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Big 5's degree of accounting gimmicks and manipulations.
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About Big 5 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.
Big 5 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 Big 5. 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.
About Big 5 Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Big 5 Sporting's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Big 5 using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Big 5 Sporting 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 Big Stock Analysis
When running Big 5's price analysis, check to
measure Big 5'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 Big 5 is operating at the current time. Most of Big 5's value examination focuses on studying past and present price action to
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