Cholamandalam Financial Holdings Stock Beneish M Score

CHOLAHLDNG   1,632  35.55  2.23%   
This module uses fundamental data of Cholamandalam Financial to approximate the value of its Beneish M Score. Cholamandalam Financial 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in Cholamandalam Financial Holdings. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in nation.
  
At this time, Cholamandalam Financial's Short and Long Term Debt Total is quite stable compared to the past year. Net Debt is expected to rise to about 1.4 T this year, although the value of Short and Long Term Debt will most likely fall to about 288.2 B.
At this time, Cholamandalam Financial's M Score is inapplicable. The earnings manipulation may begin if Cholamandalam Financial'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 Cholamandalam Financial 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 Cholamandalam Financial'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.
-1.72
Beneish M Score - Inapplicable
Elasticity of Receivables

1.77

Focus
Asset Quality

1.0

Focus
Expense Coverage

1.95

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.95

Focus
Depreciation Resistance

0.79

Focus
Net Sales Growth

0.54

Focus
Financial Leverage Condition

1.0

Focus

Cholamandalam Financial 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 Cholamandalam Financial'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
Total Revenue82.4 B153.2 B
Way Down
Slightly volatile
Total Assets1.9 T1.8 T
Sufficiently Up
Slightly volatile
Total Current Assets461.8 B439.9 B
Sufficiently Up
Slightly volatile
Non Current Assets Total1.8 T1.8 T
Sufficiently Up
Slightly volatile
Property Plant Equipment3.2 B4.9 B
Way Down
Slightly volatile
Depreciation And Amortization2.4 B2.5 B
Notably Down
Slightly volatile
Selling General Administrative31.8 B30.3 B
Sufficiently Up
Slightly volatile
Total Current Liabilities556.8 B530.3 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total1.6 T1.5 T
Sufficiently Up
Slightly volatile
Short Term Debt498.7 B474.9 B
Sufficiently Up
Slightly volatile
Long Term Debt1.4 T1.3 T
Sufficiently Up
Slightly volatile
Short Term Investments27.7 B40.3 B
Way Down
Slightly volatile
Long Term Investments67.7 B86.9 B
Significantly Down
Slightly volatile

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

About Cholamandalam Financial 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

2.35 Billion

At this time, Cholamandalam Financial's Depreciation And Amortization is quite stable compared to the past year.

Cholamandalam Financial 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 Cholamandalam Financial. 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 Receivables4.2B6.1B6.2B6.7B22.3B21.2B
Total Revenue126.5B144.6B156.4B194.4B153.2B82.4B
Total Assets758.4B886.2B977.7B1.3T1.8T1.9T
Total Current Assets237.6B291.4B264.6B1.3T439.9B461.8B
Net Debt514.9B622.6B664.3B961.4B1.3T1.4T
Short Term Debt167.0B241.1B251.6B971.9B474.9B498.7B
Long Term Debt380.4B638.0B692.3B628.7B1.3T1.4T
Operating Income23.9B25.1B30.0B38.1B122.1B128.2B
Investments(964.9M)(620.7M)(1.4B)(2.6B)(26.2B)(24.9B)

About Cholamandalam Financial Fundamental Analysis

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

Cholamandalam Financial financial ratios help investors to determine whether Cholamandalam 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 Cholamandalam with respect to the benefits of owning Cholamandalam Financial security.