Aci Worldwide Beneish M Score

ACIW
 Stock
  

USD 26.13  0.30  1.14%   

This module uses fundamental data of Aci Worldwide to approximate the value of its Beneish M Score. Aci Worldwide 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 continue to Aci Worldwide Piotroski F Score and Aci Worldwide Altman Z Score analysis.
  
Aci Worldwide Long Term Debt to Equity is fairly stable at the moment as compared to the past year. Aci Worldwide reported Long Term Debt to Equity of 0.82 in 2021. Debt to Equity Ratio is likely to climb to 1.75 in 2022, whereas Total Debt is likely to drop slightly above 1 B in 2022. Aci Worldwide Asset Turnover is fairly stable at the moment as compared to the past year. Aci Worldwide reported Asset Turnover of 0.43 in 2021. Current Ratio is likely to climb to 1.41 in 2022, whereas Accrued Expenses Turnover is likely to drop 21.61 in 2022.
At this time, it appears that Aci Worldwide is an unlikely manipulator. The earnings manipulation may begin if Aci Worldwide'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 Aci Worldwide 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 Aci Worldwide'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.
-3.09
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.9Focus
Asset QualityN/AFocus
Expense Coverage1.1Focus
Gross Margin Strengs0.97Focus
Accruals Factor1.1Focus
Depreciation Resistance1.0Focus
Net Sales Growth0.95Focus
Financial Leverage Condition1.02Focus

Aci Worldwide 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 Aci Worldwide'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
Revenues1.3 B1.4 B
Notably Down
Increasing
Slightly volatile
Selling General and Administrative Expense260.9 M250.3 M
Sufficiently Up
Increasing
Slightly volatile
Net Cash Flow from Operations203.4 M220.5 M
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion132.7 M143.9 M
Significantly Down
Increasing
Slightly volatile
Total Assets2.9 B3.2 B
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net101.3 M110.9 M
Significantly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables512 M596.6 M
Fairly Down
Increasing
Slightly volatile
Total Liabilities1.8 B1.9 B
Significantly Down
Increasing
Slightly volatile
Current Assets825 M937.4 M
Fairly Down
Increasing
Slightly volatile
Assets Non Current2.1 B2.2 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities653.2 M754.2 M
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current1.1 B1.2 B
Sufficiently Down
Increasing
Slightly volatile
Total DebtB1.1 B
Notably Down
Increasing
Slightly volatile
Debt Current44.6 M45.9 M
Fairly Down
Increasing
Very volatile
Debt Non Current999.6 M1.1 B
Notably Down
Increasing
Slightly volatile
Operating Income186.3 M209.9 M
Fairly Down
Increasing
Slightly volatile
Gross Margin0.520.534
Fairly Down
Decreasing
Slightly volatile

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

About Aci Worldwide 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 Amortization and Accretion

132.71 Million

Aci Worldwide Depreciation Amortization and Accretion is fairly stable at the moment as compared to the past year. Aci Worldwide reported Depreciation Amortization and Accretion of 143.91 Million in 2021

Aci Worldwide 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 Aci Worldwide. 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)
Revenues1.02 B1.01 B1.26 B1.29 B1.37 B1.3 B
Total Assets1.86 B2.12 B3.26 B3.39 B3.16 B2.88 B
Current Assets421.82 M566.48 M920.38 M1.15 B937.43 M824.95 M
Assets Non Current1.44 B1.56 B2.34 B2.23 B2.22 B2.05 B
Total Liabilities1.1 B1.07 B2.13 B2.18 B1.91 B1.76 B
Current Liabilities321.78 M296.62 M611.95 M905.61 M754.15 M653.2 M
Total Debt685.73 M671.76 M1.42 B1.19 B1.11 B1.05 B
Debt Current17.79 M20.77 M34.15 M34.27 M45.87 M44.56 M
Debt Non Current667.94 M650.99 M1.39 B1.16 B1.06 B999.64 M
Operating Income84.64 M125.91 M123.76 M144.74 M209.9 M186.25 M

About Aci Worldwide Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Aci Worldwide's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Aci Worldwide using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Aci Worldwide 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.
ACI Worldwide, Inc., a software company, develops, markets, installs, and supports a range of software products and solutions for facilitating digital payments to banks, merchants, and billers worldwide. The company was founded in 1975 and is based in Coral Gables, Florida. Aci Worldwide operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 3610 people.

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Please continue to Aci Worldwide Piotroski F Score and Aci Worldwide Altman Z Score analysis. Note that the Aci Worldwide information on this page should be used as a complementary analysis to other Aci Worldwide'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 Global Correlations module to find global opportunities by holding instruments from different markets.

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Is Aci Worldwide'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 Aci Worldwide. If investors know Aci Worldwide 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 Aci Worldwide 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
1.33
Market Capitalization
2.9 B
Quarterly Revenue Growth YOY
0.13
Return On Assets
0.0494
Return On Equity
0.13
The market value of Aci Worldwide is measured differently than its book value, which is the value of Aci Worldwide that is recorded on the company's balance sheet. Investors also form their own opinion of Aci Worldwide's value that differs from its market value or its book value, called intrinsic value, which is Aci Worldwide'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 Aci Worldwide's market value can be influenced by many factors that don't directly affect Aci Worldwide'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 Aci Worldwide's value and its price as these two are different measures arrived at by different means. Investors typically determine Aci Worldwide value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Aci Worldwide'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.