Arqit Beneish M Score

ARQQ
 Stock
  

USD 5.65  0.66  10.46%   

This module uses fundamental data of Arqit Quantum to approximate the value of its Beneish M Score. Arqit Quantum 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 Arqit Quantum Piotroski F Score and Arqit Quantum Altman Z Score analysis.
  
As of 13th of August 2022, Total Debt is likely to drop to about 4.9 M. In addition to that, Debt Current is likely to drop to about 4.9 M.
At this time, it appears that Arqit Quantum is an unlikely manipulator. The earnings manipulation may begin if Arqit Quantum'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 Arqit Quantum 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 Arqit Quantum'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.
-9.05
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables1.09Focus
Asset QualityN/AFocus
Expense Coverage0.83Focus
Gross Margin Strengs0.99Focus
Accruals Factor0.83Focus
Depreciation ResistanceN/AFocus
Net Sales Growth0.99Focus
Financial Leverage Condition1.0Focus

Arqit Quantum 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 Arqit Quantum'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
Revenues42.9 K43.1 K
Slightly Down
Decreasing
Slightly volatile
Selling General and Administrative Expense13.8 M16.7 M
Significantly Down
Increasing
Slightly volatile
Total Assets104.4 M130.8 M
Significantly Down
Increasing
Slightly volatile
Property Plant and Equipment Net225.2 K267.4 K
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables10.3 M9.5 M
Significantly Up
Increasing
Slightly volatile
Total Liabilities134.5 M169.7 M
Significantly Down
Increasing
Slightly volatile
Current Assets112 M103.8 M
Significantly Up
Increasing
Slightly volatile
Assets Non Current23.6 M27 M
Fairly Down
Increasing
Slightly volatile
Current Liabilities17.5 M19.6 M
Moderately Down
Increasing
Slightly volatile
Liabilities Non Current161.9 M150.1 M
Significantly Up
Increasing
Slightly volatile
Total Debt4.9 M4.9 M
Slightly Down
Decreasing
Slightly volatile
Debt Current4.9 M4.9 M
Slightly Down
Decreasing
Slightly volatile
Gross Margin0.890.9
Fairly Down
Decreasing
Slightly volatile

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

About Arqit Quantum 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.

Earnings Before Interest Taxes and Depreciation Amortization EBITDA

(250 Million)

Arqit Quantum Earnings Before Interest Taxes and Depreciation Amortization EBITDA are very stable at the moment as compared to the past year. Arqit Quantum reported last year Earnings Before Interest Taxes and Depreciation Amortization EBITDA of (243.59 Million)

About Arqit Quantum Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Arqit Quantum's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Arqit Quantum using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Arqit Quantum 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.
Arqit Quantum Inc. provides cybersecurity services through satellite and terrestrial platforms in the United Kingdom. It offers QuantumCloud that enables any device to download a lightweight software agent, which can create encryption keys in partnership with any other device. Arqit Quantum operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 74 people.

Arqit Quantum Investors Sentiment

The influence of Arqit Quantum's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Arqit. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Arqit Quantum's public news can be used to forecast risks associated with investment in Arqit. The trend in average sentiment can be used to explain how an investor holding Arqit can time the market purely based on public headlines and social activities around Arqit Quantum. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Arqit Quantum's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Arqit Quantum's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Arqit Quantum's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Arqit Quantum.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Arqit Quantum in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Arqit Quantum's short interest history, or implied volatility extrapolated from Arqit Quantum options trading.
Please continue to Arqit Quantum Piotroski F Score and Arqit Quantum Altman Z Score analysis. Note that the Arqit Quantum information on this page should be used as a complementary analysis to other Arqit Quantum'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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.

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When running Arqit Quantum price analysis, check to measure Arqit Quantum'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 Arqit Quantum is operating at the current time. Most of Arqit Quantum's value examination focuses on studying past and present price action to predict the probability of Arqit Quantum's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Arqit Quantum's price. Additionally, you may evaluate how the addition of Arqit Quantum to your portfolios can decrease your overall portfolio volatility.
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Is Arqit Quantum'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 Arqit Quantum. If investors know Arqit 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 Arqit Quantum listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Market Capitalization
688.9 M
Return On Assets
-0.14
Return On Equity
-0.5
The market value of Arqit Quantum is measured differently than its book value, which is the value of Arqit that is recorded on the company's balance sheet. Investors also form their own opinion of Arqit Quantum's value that differs from its market value or its book value, called intrinsic value, which is Arqit Quantum'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 Arqit Quantum's market value can be influenced by many factors that don't directly affect Arqit Quantum'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 Arqit Quantum's value and its price as these two are different measures arrived at by different means. Investors typically determine Arqit Quantum value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arqit Quantum'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.