Digatrade Financial Corp Stock Beneish M Score

DIGAF Stock  USD 0.0001  0.00  0.00%   
This module uses fundamental data of Digatrade Financial to approximate the value of its Beneish M Score. Digatrade 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 Digatrade Financial Piotroski F Score and Digatrade Financial Altman Z Score analysis.
  
The Digatrade Financial's current Short and Long Term Debt is estimated to increase to about 288.1 K, while Long Term Debt is projected to decrease to roughly 13.1 K. At this time, Digatrade Financial's Average Payables is most likely to decrease significantly in the upcoming years. The Digatrade Financial's current Capex To Depreciation is estimated to increase to 508.01, while Book Value Per Share is projected to decrease to (0.0003).
At this time, it appears that Digatrade Financial Corp is an unlikely manipulator. The earnings manipulation may begin if Digatrade 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 Digatrade 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 Digatrade 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.
-9.223372036854776E16
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

N/A

Focus
Asset Quality

-9.223372036854776E18

Focus
Expense Coverage

N/A

Focus
Gross Margin Strengs

0.83

Focus
Accruals Factor

N/A

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

N/A

Focus
Financial Leverage Condition

1.14

Focus

Digatrade 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 Digatrade 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
Net Receivables11.1 K12.7 K
Fairly Down
Slightly volatile
Total Assets334 K349.4 K
Sufficiently Down
Slightly volatile
Total Current Assets433.6 K349.4 K
Fairly Up
Slightly volatile
Selling General Administrative456.7 K561.1 K
Significantly Down
Slightly volatile
Total Current Liabilities1.1 M978.3 K
Significantly Up
Slightly volatile
Net Debt106.7 K112.3 K
Notably Down
Slightly volatile
Gross Profit Margin0.150.18
Fairly Down
Slightly volatile

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

About Digatrade 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.

Total Assets

334,023

At this time, Digatrade Financial's Total Assets are most likely to increase significantly in the upcoming years.

Digatrade 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 Digatrade 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 Receivables11.2K13.7K12.0K11.0K12.7K11.1K
Total Assets527.2K304.4K293.2K303.9K349.4K334.0K
Total Current Assets1.5M277.7K293.2K303.9K349.4K433.6K
Selling General Administrative688.1K972.8K413.7K487.9K561.1K456.7K
Total Current Liabilities1.1M735.3K1.9M850.7K978.3K1.1M
Net Debt155.0K129.7K103.1K124.8K112.3K106.7K
Operating Income(790.8K)(972.8K)(413.7K)(487.9K)(439.1K)(461.0K)
Total Cash From Operating Activities(763.9K)(760.8K)(370.5K)(561.3K)(505.2K)(530.5K)

About Digatrade Financial Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Digatrade Financial Corp is a strong investment it is important to analyze Digatrade Financial's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Digatrade Financial's future performance. For an informed investment choice regarding Digatrade Stock, refer to the following important reports:
Check out Digatrade Financial Piotroski F Score and Digatrade Financial Altman Z Score analysis.
You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
Is IT Consulting & Other Services 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 Digatrade Financial. If investors know Digatrade 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 Digatrade Financial listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Return On Assets
(0.67)
The market value of Digatrade Financial Corp is measured differently than its book value, which is the value of Digatrade that is recorded on the company's balance sheet. Investors also form their own opinion of Digatrade Financial's value that differs from its market value or its book value, called intrinsic value, which is Digatrade Financial'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 Digatrade Financial's market value can be influenced by many factors that don't directly affect Digatrade Financial'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 Digatrade Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine if Digatrade Financial is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Digatrade Financial'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.