Big Lots Beneish M Score

BIG
 Stock
  

USD 21.67  0.60  2.69%   

This module uses fundamental data of Big Lots to approximate the value of its Beneish M Score. Big Lots 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 Big Lots Piotroski F Score and Big Lots Altman Z Score analysis.
  
Refresh
Big Lots Long Term Debt to Equity is projected to slightly decrease based on the last few years of reporting. The past year's Long Term Debt to Equity was at 0.003474. The current year Return on Sales is expected to grow to 0.06
At this time, it appears that Big Lots is an unlikely manipulator. The earnings manipulation may begin if Big Lots' 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 Big Lots 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 Big Lots' 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.
-3.78
Beneish M Score - Unlikely Manipulator
Elasticity of ReceivablesN/AFocus
Asset QualityN/AFocus
Expense Coverage1.0Focus
Gross Margin Strengs1.08Focus
Accruals Factor1.0Focus
Depreciation Resistance0.98Focus
Net Sales Growth0.97Focus
Financial Leverage Condition0.84Focus

Big Lots 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 Big Lots' 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
RevenuesB6.2 B
Sufficiently Down
Increasing
Slightly volatile
Selling General and Administrative ExpenseBB
Sufficiently Down
Increasing
Slightly volatile
Net Cash Flow from Operations269.6 M193.8 M
Significantly Up
Increasing
Stable
Depreciation Amortization and Accretion271 M409.1 M
Way Down
Increasing
Slightly volatile
Total Assets2.9 B3.9 B
Way Down
Increasing
Slightly volatile
Property Plant and Equipment Net1.6 B2.5 B
Way Down
Increasing
Slightly volatile
Total LiabilitiesB2.9 B
Way Down
Increasing
Slightly volatile
Current Assets1.3 B1.4 B
Moderately Down
Increasing
Slightly volatile
Assets Non Current1.7 B2.5 B
Way Down
Increasing
Slightly volatile
Current Liabilities901.3 M1.1 B
Significantly Down
Increasing
Slightly volatile
Liabilities Non Current1.1 B1.8 B
Way Down
Increasing
Slightly volatile
Total Debt988.2 M1.8 B
Way Down
Increasing
Slightly volatile
Debt Current246.5 M242.3 M
Fairly Up
Increasing
Slightly volatile
Debt Non Current860.7 M1.6 B
Way Down
Increasing
Slightly volatile
Operating Income244.3 M239.8 M
Fairly Up
Increasing
Stable
Gross Margin0.420.39
Significantly Up
Increasing
Slightly volatile

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

About Big Lots 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

2.09 Billion

Share
Big Lots Operating Expenses is projected to increase significantly based on the last few years of reporting. The past year's Operating Expenses was at 2.16 Billion

About Big Lots Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Big Lots's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Big Lots using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Big Lots 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.
Big Lots, Inc., through its subsidiaries, operates as a home discount retailer in the United States. Big Lots, Inc. was founded in 1967 and is headquartered in Columbus, Ohio. Big Lots operates under Discount Stores classification in the United States and is traded on New York Stock Exchange. It employs 10500 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Big Lots 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.

Did you try this?

Run Theme Ratings Now

   

Theme Ratings

Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
All  Next Launch Module

Pair Trading with Big Lots

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 Big Lots 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 Big Lots will appreciate offsetting losses from the drop in the long position's value.

Big Lots Pair Correlation

Correlation Analysis For Direct Indexing and Tax-loss Harvesting

The ability to find closely correlated positions to Big Lots could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Big Lots 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 Big Lots - 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 Big Lots to buy it.
The correlation of Big Lots 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 Big Lots moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Big Lots 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 Big Lots 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 Big Lots Piotroski F Score and Big Lots Altman Z Score analysis. Note that the Big Lots information on this page should be used as a complementary analysis to other Big Lots' 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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.

Complementary Tools for Big Lots Stock analysis

When running Big Lots price analysis, check to measure Big Lots' 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 Big Lots is operating at the current time. Most of Big Lots' value examination focuses on studying past and present price action to predict the probability of Big Lots' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Big Lots' price. Additionally, you may evaluate how the addition of Big Lots to your portfolios can decrease your overall portfolio volatility.
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Shere Portfolio
Track or share privately all of your investments from the convenience of any device
Go
Stock Screener
Find equities using custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook.
Go
Pair Correlation
Compare performance and examine fundamental relationship between any two equity instruments
Go
Money Flow Index
Determine momentum by analyzing Money Flow Index and other technical indicators
Go
Theme Ratings
Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Is Big Lots' 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 Big Lots. If investors know Big Lots 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 Big Lots 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
-0.37
Market Capitalization
644 M
Quarterly Revenue Growth YOY
-0.15
Return On Assets
0.017
Return On Equity
0.0642
The market value of Big Lots is measured differently than its book value, which is the value of Big Lots that is recorded on the company's balance sheet. Investors also form their own opinion of Big Lots' value that differs from its market value or its book value, called intrinsic value, which is Big Lots' 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 Big Lots' market value can be influenced by many factors that don't directly affect Big Lots' 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 Big Lots' value and its price as these two are different measures arrived at by different means. Investors typically determine Big Lots value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Big Lots' 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.