FTI Consulting Beneish M Score

FCN
 Stock
  

USD 172.82  2.26  1.32%   

This module uses fundamental data of FTI Consulting to approximate the value of its Beneish M Score. FTI Consulting 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. Please check FTI Consulting Piotroski F Score and FTI Consulting Altman Z Score analysis.
  
FTI Consulting Debt Current is quite stable at the moment as compared to the past year. The company's current value of Debt Current is estimated at 10.16 Million. Long Term Debt to Equity is expected to rise to 0.19 this year, although the value of Total Debt will most likely fall to about 506.1 M. FTI Consulting Return on Investment is quite stable at the moment as compared to the past year. The company's current value of Return on Investment is estimated at 18.88. Cash Flow Per Share is expected to rise to 11.17 this year, although the value of PPandE Turnover will most likely fall to 21.84.
At this time, it appears that FTI Consulting is an unlikely manipulator. The earnings manipulation may begin if FTI Consulting'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 FTI Consulting 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 FTI Consulting'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 Receivables1.16Focus
Asset Quality0.98Focus
Expense Coverage1.23Focus
Gross Margin Strengs1.18Focus
Accruals Factor1.23Focus
Depreciation Resistance1.11Focus
Net Sales Growth0.82Focus
Financial Leverage Condition1.03Focus

FTI Consulting 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 FTI Consulting'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
Selling General and Administrative Expense539.8 M537.8 M
Slightly Up
Increasing
Slightly volatile
Revenues2.3 B2.8 B
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables714.3 M754.1 M
Notably Down
Increasing
Slightly volatile
Property Plant and Equipment Net386.4 M358.2 M
Significantly Up
Increasing
Slightly volatile
Operating Income336.7 M312 M
Significantly Up
Increasing
Slightly volatile
Net Cash Flow from Operations383.5 M355.5 M
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current739.8 M799.5 M
Significantly Down
Decreasing
Slightly volatile
Current Liabilities569.6 M718.1 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities1.3 B1.5 B
Fairly Down
Increasing
Stable
Investments Non Current66.1 M53.5 M
Fairly Up
Decreasing
Slightly volatile
Investments Current34 M30.3 M
Moderately Up
Increasing
Slightly volatile
Investments95.2 M83.8 M
Moderately Up
Decreasing
Slightly volatile
Gross Margin36.7131.0031
Fairly Up
Decreasing
Slightly volatile
Depreciation Amortization and Accretion43.4 M45.1 M
Sufficiently Down
Decreasing
Slightly volatile
Debt Non Current499.4 M533.2 M
Notably Down
Decreasing
Slightly volatile
Debt Current10.2 M9.9 M
Fairly Up
Decreasing
Slightly volatile
Total Debt506.1 M533.2 M
Notably Down
Decreasing
Slightly volatile
Assets Non Current1.8 B1.7 B
Sufficiently Up
Increasing
Stable
Current Assets1.1 B1.4 B
Significantly Down
Increasing
Slightly volatile
Total Assets2.7 B3.1 B
Fairly Down
Increasing
Slightly volatile

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

About FTI Consulting 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

570.85 Million

FTI Consulting Operating Expenses is quite stable at the moment as compared to the past year. The company's current value of Operating Expenses is estimated at 570.85 Million

FTI Consulting 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 FTI Consulting. 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)
Revenues1.81 B2.03 B2.35 B2.46 B2.78 B2.27 B
Total Assets2.26 B2.38 B2.78 B2.78 B3.1 B2.67 B
Current Assets794.18 M965.35 M1.18 B1.13 B1.37 B1.1 B
Assets Non Current1.46 B1.41 B1.6 B1.65 B1.73 B1.81 B
Total Liabilities1.07 B1.03 B1.29 B1.38 B1.52 B1.32 B
Current Liabilities410.33 M482.57 M612.54 M670.17 M718.12 M569.6 M
Total Debt396.28 M265.57 M451.99 M447.81 M533.18 M506.14 M
Debt Non Current396.28 M265.57 M451.99 M447.81 M533.18 M499.38 M
Operating Income108.71 M226 M305.6 M282.66 M312.05 M336.68 M
Investments123.8 M113.7 M104.14 M96.37 M83.8 M95.21 M
Investments Current25.69 M29.23 M35.11 M35.25 M30.26 M34.01 M
Gross Margin32.7634.5134.7632.0431.036.71

About FTI Consulting Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze FTI Consulting's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of FTI Consulting using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of FTI Consulting 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.
FTI Consulting, Inc. provides business advisory services to manage change, mitigate risk, and resolve disputes worldwide. The company was founded in 1982 and is headquartered in Washington, District of Columbia. Fti Consulting operates under Consulting Services classification in the United States and is traded on New York Stock Exchange. It employs 7518 people.

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Please check FTI Consulting Piotroski F Score and FTI Consulting Altman Z Score analysis. Note that the FTI Consulting information on this page should be used as a complementary analysis to other FTI Consulting'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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running FTI Consulting price analysis, check to measure FTI Consulting'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 FTI Consulting is operating at the current time. Most of FTI Consulting's value examination focuses on studying past and present price action to predict the probability of FTI Consulting's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move FTI Consulting's price. Additionally, you may evaluate how the addition of FTI Consulting to your portfolios can decrease your overall portfolio volatility.
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Is FTI Consulting'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 FTI Consulting. If investors know FTI Consulting 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 FTI Consulting listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.097
Market Capitalization
5.9 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0583
Return On Equity
0.14
The market value of FTI Consulting is measured differently than its book value, which is the value of FTI Consulting that is recorded on the company's balance sheet. Investors also form their own opinion of FTI Consulting's value that differs from its market value or its book value, called intrinsic value, which is FTI Consulting'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 FTI Consulting's market value can be influenced by many factors that don't directly affect FTI Consulting'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 FTI Consulting's value and its price as these two are different measures arrived at by different means. Investors typically determine FTI Consulting value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, FTI Consulting'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.