British Beneish M Score

BTI -  USA Stock  

USD 43.11  0.26  0.61%

This module uses fundamental data of British Amer to approximate the value of its Beneish M Score. British Amer 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. Continue to British Amer Piotroski F Score and British Amer Altman Z Score analysis.
  
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British Amer Debt Non Current is most likely to increase significantly in the upcoming years. The last year's value of Debt Non Current was reported at 35.67 Billion. The current Long Term Debt to Equity is estimated to increase to 1.13, while Issuance Repayment of Debt Securities is projected to decrease to (3.9 B). British Amer PPandE Turnover is most likely to increase slightly in the upcoming years. The last year's value of PPandE Turnover was reported at 5.59. The current Inventory Turnover is estimated to increase to 0.89, while Calculated Tax Rate is projected to decrease to 23.96.
At this time, it appears that British American Tobacco is an unlikely manipulator. The earnings manipulation may begin if British Amer'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 British Amer 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 British Amer'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.
-2.53
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.05Focus
Asset Quality0.99Focus
Expense Coverage1.03Focus
Gross Margin Strengs1.04Focus
Accruals Factor1.03Focus
Depreciation Resistance1.03Focus
Net Sales Growth0.94Focus
Financial Leverage Condition1.06Focus

British Amer 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 British Amer'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
Revenues24.1 B25.7 B
Notably Down
Increasing
Slightly volatile
Selling General and Administrative Expense2.1 B2.2 B
Sufficiently Down
Increasing
Slightly volatile
Net Cash Flow from Operations10.4 B11.7 B
Fairly Down
Increasing
Slightly volatile
Depreciation Amortization and AccretionB1.1 B
Sufficiently Down
Increasing
Slightly volatile
Total Assets131 B137.4 B
Sufficiently Down
Increasing
Slightly volatile
Investments2.5 B2.5 B
Fairly Up
Increasing
Stable
Investments Current492 M456 M
Significantly Up
Increasing
Slightly volatile
Investments Non Current2.4 BB
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net4.9 BB
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables4.1 B4.2 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities70.1 B70 B
Slightly Up
Increasing
Slightly volatile
Current Assets13.1 B12.8 B
Fairly Up
Increasing
Slightly volatile
Assets Non Current117.9 B124.6 B
Notably Down
Increasing
Slightly volatile
Current Liabilities15.4 B15.1 B
Fairly Up
Increasing
Slightly volatile
Liabilities Non Current54.7 B54.8 B
Slightly Down
Increasing
Slightly volatile
Total Debt40.3 B39.7 B
Fairly Up
Increasing
Slightly volatile
Debt Current4.2 BB
Notably Up
Increasing
Slightly volatile
Debt Non Current36.1 B35.7 B
Fairly Up
Increasing
Slightly volatile
Operating Income9.2 B10.2 B
Moderately Down
Increasing
Slightly volatile
Gross Margin0.860.829
Sufficiently Up
Increasing
Slightly volatile

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

About British Amer 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.

Operating Expenses

10.2 Billion

Share
British Amer Operating Expenses is most likely to increase significantly in the upcoming years. The last year's value of Operating Expenses was reported at 11.07 Billion

British Amer 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 British Amer. 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.
201720182019202020212022 (projected)
Revenues19.56 B24.49 B25.88 B25.78 B25.68 B24.12 B
Total Assets141.05 B146.34 B141 B137.69 B137.37 B131.04 B
Current Assets13.97 B12.65 B13.27 B13.61 B12.81 B13.12 B
Assets Non Current127.09 B133.69 B127.73 B124.08 B124.56 B117.91 B
Total Liabilities80.07 B80.65 B76.84 B74.73 B69.96 B70.06 B
Current Liabilities15.61 B16.33 B18.82 B15.48 B15.14 B15.36 B
Total Debt49.45 B47.51 B45.37 B43.97 B39.66 B40.27 B
Debt Current5.42 B4.22 B7.56 B4.04 B3.99 B4.21 B
Debt Non Current44.03 B43.28 B37.8 B39.93 B35.67 B36.05 B
Operating Income6.41 B9.31 B9.02 B9.96 B10.23 B9.23 B
Investments1.68 B1.95 B2 B2.06 B2.45 B2.49 B
Investments Current65 M178 M123 M242 M456 M492 M

About British Amer Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze British American Tobacco's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of British Amer using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of British American Tobacco 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.
British American Tobacco p.l.c. provides tobacco and nicotine products to consumers worldwide. British American Tobacco p.l.c. was founded in 1902 and is based in London, the United Kingdom. British Amer operates under Tobacco classification in the United States and is traded on New York Stock Exchange. It employs 54365 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in British Amer without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Pair Trading with British Amer

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if British Amer position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in British Amer will appreciate offsetting losses from the drop in the long position's value.

British Amer Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to British Amer could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace British Amer when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back British Amer - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling British American Tobacco to buy it.
The correlation of British Amer is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as British Amer moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if British American Tobacco moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for British Amer can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Continue to British Amer Piotroski F Score and British Amer Altman Z Score analysis. Note that the British American Tobacco information on this page should be used as a complementary analysis to other British Amer's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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When running British American Tobacco price analysis, check to measure British Amer'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 British Amer is operating at the current time. Most of British Amer's value examination focuses on studying past and present price action to predict the probability of British Amer's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move British Amer's price. Additionally, you may evaluate how the addition of British Amer to your portfolios can decrease your overall portfolio volatility.
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Is British Amer's industry 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 British Amer. If investors know British 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 British Amer 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 British American Tobacco is measured differently than its book value, which is the value of British that is recorded on the company's balance sheet. Investors also form their own opinion of British Amer's value that differs from its market value or its book value, called intrinsic value, which is British Amer'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 British Amer's market value can be influenced by many factors that don't directly affect British Amer'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 British Amer's value and its price as these two are different measures arrived at by different means. Investors typically determine British Amer value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, British Amer'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.