Lightinthebox Beneish M Score

LITB
 Stock
  

USD 1.06  0.10  10.42%   

This module uses fundamental data of Lightinthebox Holding to approximate the value of its Beneish M Score. Lightinthebox Holding 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. Additionally, see Lightinthebox Holding Piotroski F Score and Lightinthebox Holding Altman Z Score analysis.
  
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Lightinthebox Holding Total Debt is projected to decrease significantly based on the last few years of reporting. The past year's Total Debt was at 11.65 Million. The current year Debt Current is expected to grow to about 3.9 M, whereas Debt Non Current is forecasted to decline to about 7.6 M. Lightinthebox Holding Asset Turnover is projected to drop slightly based on the last few years of reporting. The past year's Asset Turnover was at 2.67. The current year Current Ratio is expected to grow to 0.95, whereas Book Value per Share is forecasted to decline to 0.54.
At this time, it appears that Lightinthebox Holding is an unlikely manipulator. The earnings manipulation may begin if Lightinthebox Holding'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 Lightinthebox Holding 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 Lightinthebox Holding'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.
-3.5
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.9Focus
Asset Quality-0.041Focus
Expense Coverage0.95Focus
Gross Margin Strengs0.99Focus
Accruals Factor0.95Focus
Depreciation Resistance1.26Focus
Net Sales Growth0.91Focus
Financial Leverage Condition1.03Focus

Lightinthebox Holding 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 Lightinthebox Holding'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
Revenues405.5 M446.1 M
Moderately Down
Increasing
Slightly volatile
Selling General and Administrative Expense167.2 M193.9 M
Fairly Down
Increasing
Slightly volatile
Net Cash Flow from Operations(1.9 M)(1.8 M)
Significantly Down
Increasing
Stable
Depreciation Amortization and Accretion2.7 M3.3 M
Significantly Down
Increasing
Slightly volatile
Total Assets163 M195.4 M
Fairly Down
Increasing
Slightly volatile
Investments60.8 M56.4 M
Significantly Up
Decreasing
Slightly volatile
Investments Current5.4 M5.2 M
Fairly Up
Decreasing
Slightly volatile
Investments Non Current60.8 M56.4 M
Significantly Up
Increasing
Slightly volatile
Property Plant and Equipment Net16.1 M14.9 M
Significantly Up
Increasing
Slightly volatile
Trade and Non Trade Receivables3.6 M4.4 M
Significantly Down
Increasing
Slightly volatile
Total Liabilities109 M131.5 M
Significantly Down
Increasing
Slightly volatile
Current Assets87.4 M83.9 M
Sufficiently Up
Increasing
Slightly volatile
Assets Non Current120.3 M111.5 M
Significantly Up
Increasing
Slightly volatile
Current Liabilities95.3 M109.9 M
Fairly Down
Increasing
Slightly volatile
Liabilities Non Current17.7 M21.6 M
Significantly Down
Increasing
Slightly volatile
Total Debt14.2 M11.6 M
Fairly Up
Decreasing
Very volatile
Debt Current3.9 M3.8 M
Fairly Up
Decreasing
Stable
Debt Non Current7.6 M7.9 M
Sufficiently Down
Decreasing
Slightly volatile
Operating Income(17.4 M)(16.1 M)
Significantly Down
Increasing
Stable
Gross Margin0.460.463
Slightly Down
Increasing
Slightly volatile

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

About Lightinthebox Holding 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

2.71 Million

Share
Lightinthebox Holding Depreciation Amortization and Accretion is projected to increase significantly based on the last few years of reporting. The past year's Depreciation Amortization and Accretion was at 3.3 Million

Lightinthebox Holding 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 Lightinthebox Holding. 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)
Revenues319.88 M227.54 M243.63 M398.15 M446.1 M405.45 M
Total Assets108.74 M103.59 M113.2 M158.03 M195.37 M162.95 M
Current Assets100.98 M55.56 M57.38 M84.81 M83.9 M87.42 M
Assets Non Current7.75 M48.03 M55.82 M73.22 M111.47 M120.26 M
Total Liabilities53.27 M111.39 M81.32 M108.65 M131.49 M108.99 M
Current Liabilities53.27 M110.24 M71.67 M96.85 M109.93 M95.32 M
Operating Income(10.17 M)(37.48 M)(16.05 M)3.85 M(16.11 M)(17.38 M)
Investments5.26 M5.19 M2.87 M17.3 M56.38 M60.83 M

About Lightinthebox Holding Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Lightinthebox Holding Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lightinthebox Holding using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lightinthebox Holding Co 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.
LightInTheBox Holding Co., Ltd. operates as a cross-border e-commerce platform that delivers products directly from manufacturers to its customers worldwide. LightInTheBox Holding Co., Ltd. was founded in 2007 and is headquartered in Shanghai, the Peoples Republic of China. Lightinthebox Holding operates under Internet Retail classification in the United States and is traded on New York Stock Exchange.

Lightinthebox Holding Investors Sentiment

The influence of Lightinthebox Holding'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 Lightinthebox. 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.
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 Lightinthebox Holding 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, Lightinthebox Holding's short interest history, or implied volatility extrapolated from Lightinthebox Holding options trading.

Current Sentiment - LITB

Lightinthebox Holding Investor Sentiment

Most of Macroaxis users are now bullish on Lightinthebox Holding Co. What is your trading attitude regarding investing in Lightinthebox Holding Co? Are you bullish or bearish?
Bullish
Bearish
98% Bullish
2% Bearish

Becoming a Better Investor with Macroaxis

Macroaxis puts the power of mathematics on your side. We analyze your portfolios and positions such as Lightinthebox Holding using complex mathematical models and algorithms, but make them easy to understand. There is no real person involved in your portfolio analysis. We perform a number of calculations to compute absolute and relative portfolio volatility, correlation between your assets, value at risk, expected return as well as over 100 different fundamental and technical indicators.

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Additionally, see Lightinthebox Holding Piotroski F Score and Lightinthebox Holding Altman Z Score analysis. Note that the Lightinthebox Holding information on this page should be used as a complementary analysis to other Lightinthebox Holding'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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.

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Is Lightinthebox Holding'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 Lightinthebox Holding. If investors know Lightinthebox 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 Lightinthebox Holding 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
0.054
Market Capitalization
108.5 M
Quarterly Revenue Growth YOY
-0.16
Return On Assets
-0.0897
Return On Equity
0.12
The market value of Lightinthebox Holding is measured differently than its book value, which is the value of Lightinthebox that is recorded on the company's balance sheet. Investors also form their own opinion of Lightinthebox Holding's value that differs from its market value or its book value, called intrinsic value, which is Lightinthebox Holding'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 Lightinthebox Holding's market value can be influenced by many factors that don't directly affect Lightinthebox Holding'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 Lightinthebox Holding's value and its price as these two are different measures arrived at by different means. Investors typically determine Lightinthebox Holding value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lightinthebox Holding'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.