Ameriprise Beneish M Score

AMP
 Stock
  

USD 270.17  1.11  0.41%   

This module uses fundamental data of Ameriprise Financial to approximate the value of its Beneish M Score. Ameriprise 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. Please continue to Ameriprise Financial Piotroski F Score and Ameriprise Financial Altman Z Score analysis.
  
Ameriprise Financial Total Debt is very stable at the moment as compared to the past year. Ameriprise Financial reported last year Total Debt of 5.2 Billion. As of 9th of August 2022, Issuance Repayment of Debt Securities is likely to grow to about 657.1 M, while Debt to Equity Ratio is likely to drop 27.93. Ameriprise Financial Return on Investment is very stable at the moment as compared to the past year. Ameriprise Financial reported last year Return on Investment of 32.65. As of 9th of August 2022, Cash Flow Per Share is likely to grow to 32.36, while Quick Ratio is likely to drop 0.99.
At this time, it appears that Ameriprise Financial is an unlikely manipulator. The earnings manipulation may begin if Ameriprise 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 Ameriprise 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 Ameriprise 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.
-2.9
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.04Focus
Asset QualityN/AFocus
Expense Coverage0.94Focus
Gross Margin Strengs1.02Focus
Accruals Factor0.94Focus
Depreciation ResistanceN/AFocus
Net Sales Growth1.04Focus
Financial Leverage Condition0.99Focus

Ameriprise 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 Ameriprise 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
Revenues14 B13.4 B
Sufficiently Up
Increasing
Slightly volatile
Selling General and Administrative Expense8.3 B8.4 B
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations3.2 B3.3 B
Notably Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion137.5 M98 M
Significantly Up
Decreasing
Very volatile
Total Assets178.1 B176 B
Fairly Up
Increasing
Slightly volatile
Investments37 B38 B
Fairly Down
Decreasing
Slightly volatile
Trade and Non Trade Receivables17.5 B16.2 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities170.8 B170.3 B
Slightly Up
Increasing
Slightly volatile
Current Assets25.3 B23.5 B
Significantly Up
Increasing
Slightly volatile
Current Liabilities24.8 B23 B
Significantly Up
Increasing
Slightly volatile
Total Debt5.6 B5.2 B
Significantly Up
Decreasing
Slightly volatile
Operating Income3.2 B3.5 B
Significantly Down
Increasing
Slightly volatile
Gross Margin0.920.902
Fairly Up
Increasing
Slightly volatile

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

About Ameriprise 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.

Operating Expenses

8.49 Billion

Ameriprise Financial Operating Expenses is very stable at the moment as compared to the past year. Ameriprise Financial reported last year Operating Expenses of 8.57 Billion

Ameriprise 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 Ameriprise 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.
201720182019202020212022 (projected)
Trade and Non Trade Receivables5.79 B6.18 B7.21 B7.83 B16.22 B17.5 B
Revenues12.13 B12.84 B12.97 B11.9 B13.43 B13.97 B
Total Assets147.48 B137.22 B151.83 B165.88 B175.98 B178.09 B
Current Assets8.4 B9.28 B11.04 B14.68 B23.47 B25.32 B
Depreciation Amortization and Accretion234 M198 M183 M207 M98 M137.47 M
Selling General and Administrative Expense6.55 B6.81 B7.1 B7.18 B8.45 B8.25 B
Total Liabilities141.49 B131.63 B146.1 B160.02 B170.29 B170.81 B
Current Liabilities12.46 B13.61 B16.52 B19.84 B22.95 B24.77 B
Total Debt5.3 B4.81 B4.93 B4.94 B5.2 B5.65 B
Operating Income2.42 B2.73 B2.45 B1.99 B3.54 B3.23 B
Net Cash Flow from Operations1.52 B2.6 B2.34 B4.62 B3.33 B3.16 B
Investments38.06 B37.53 B39.52 B42.95 B37.99 B36.97 B

Ameriprise Financial ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Ameriprise Financial's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Ameriprise Financial's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Ameriprise Financial Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Ameriprise Financial Services's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Ameriprise Financial using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Ameriprise Financial Services 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.
Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally. Ameriprise Financial, Inc. was founded in 1894 and is headquartered in Minneapolis, Minnesota. Ameriprise Financial operates under Asset Management classification in the United States and is traded on New York Stock Exchange. It employs 12000 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Ameriprise Financial 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 Ameriprise Financial

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 Ameriprise Financial 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 Ameriprise Financial will appreciate offsetting losses from the drop in the long position's value.

Moving together with Ameriprise Financial

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The ability to find closely correlated positions to Ameriprise Financial could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ameriprise Financial 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 Ameriprise Financial - 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 Ameriprise Financial Services to buy it.
The correlation of Ameriprise Financial 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 Ameriprise Financial moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ameriprise Financial 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 Ameriprise Financial 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
Please continue to Ameriprise Financial Piotroski F Score and Ameriprise Financial Altman Z Score analysis. Note that the Ameriprise Financial information on this page should be used as a complementary analysis to other Ameriprise Financial'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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.

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When running Ameriprise Financial price analysis, check to measure Ameriprise Financial'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 Ameriprise Financial is operating at the current time. Most of Ameriprise Financial's value examination focuses on studying past and present price action to predict the probability of Ameriprise Financial's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Ameriprise Financial's price. Additionally, you may evaluate how the addition of Ameriprise Financial to your portfolios can decrease your overall portfolio volatility.
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Is Ameriprise Financial'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 Ameriprise Financial. If investors know Ameriprise 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 Ameriprise Financial 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
0.36
Market Capitalization
29.1 B
Quarterly Revenue Growth YOY
0.027
Return On Assets
0.0184
Return On Equity
0.65
The market value of Ameriprise Financial is measured differently than its book value, which is the value of Ameriprise that is recorded on the company's balance sheet. Investors also form their own opinion of Ameriprise Financial's value that differs from its market value or its book value, called intrinsic value, which is Ameriprise 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 Ameriprise Financial's market value can be influenced by many factors that don't directly affect Ameriprise 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 Ameriprise Financial's value and its price as these two are different measures arrived at by different means. Investors typically determine Ameriprise Financial value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ameriprise 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.