ATT Beneish M Score

T
 Stock
  

USD 18.42  0.15  0.81%   

This module uses fundamental data of ATT to approximate the value of its Beneish M Score. ATT 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, take a look at ATT Piotroski F Score and ATT Altman Z Score analysis.
  
ATT Total Debt is comparatively stable at the moment as compared to the past year. ATT reported Total Debt of 111.16 Billion in 2021. Debt Non Current is likely to gain to about 110.4 B in 2022, whereas Debt Current is likely to drop slightly above 7.4 B in 2022. ATT Revenue to Assets are comparatively stable at the moment as compared to the past year. ATT reported Revenue to Assets of 0.31 in 2021. Quick Ratio is likely to gain to 0.54 in 2022, whereas PPandE Turnover is likely to drop 1.23 in 2022.
At this time, it appears that ATT Inc is an unlikely manipulator. The earnings manipulation may begin if ATT'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 ATT 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 ATT'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.
-2.71
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.99Focus
Asset Quality0.99Focus
Expense Coverage0.97Focus
Gross Margin Strengs1.13Focus
Accruals Factor0.97Focus
Depreciation Resistance1.05Focus
Net Sales Growth0.9Focus
Financial Leverage Condition1.06Focus

ATT 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 ATT'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
Revenues152.2 B168.9 B
Moderately Down
Increasing
Slightly volatile
Selling General and Administrative Expense28.5 B32.7 B
Fairly Down
Increasing
Stable
Net Cash Flow from Operations38.5 B42 B
Significantly Down
Increasing
Slightly volatile
Depreciation Amortization and Accretion18.9 B23.3 B
Significantly Down
Increasing
Slightly volatile
Total Assets458.5 B551.6 B
Significantly Down
Increasing
Slightly volatile
InvestmentsB1.9 B
Fairly Up
Decreasing
Slightly volatile
Investments Current367.1 M340.2 M
Significantly Up
Increasing
Slightly volatile
Investments Non CurrentB1.9 B
Fairly Up
Decreasing
Slightly volatile
Property Plant and Equipment Net97.1 B112.4 B
Fairly Down
Increasing
Slightly volatile
Trade and Non Trade Receivables13.4 B15.1 B
Fairly Down
Increasing
Slightly volatile
Total Liabilities315.9 B385.3 B
Significantly Down
Increasing
Slightly volatile
Current Assets48.9 B60 B
Significantly Down
Increasing
Slightly volatile
Assets Non Current264.2 B328.9 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities92.3 B85.6 B
Significantly Up
Increasing
Slightly volatile
Liabilities Non Current222.5 B206.2 B
Significantly Up
Increasing
Slightly volatile
Total Debt119.9 B111.2 B
Significantly Up
Increasing
Slightly volatile
Debt Current7.4 B8.8 B
Fairly Down
Increasing
Slightly volatile
Debt Non Current110.4 B102.3 B
Significantly Up
Increasing
Slightly volatile
Operating Income20.6 B23.3 B
Fairly Down
Increasing
Stable
Gross Margin59.4152.7389
Moderately Up
Decreasing
Stable

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

About ATT 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 Margin

14.94

ATT Operating Margin is comparatively stable at the moment as compared to the past year. ATT reported Operating Margin of 13.83 in 2021

ATT 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 ATT. 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)
Revenues160.55 B170.76 B181.19 B171.76 B168.86 B152.15 B
Total Assets444.1 B531.86 B551.67 B525.76 B551.62 B458.51 B
Current Assets79.15 B51.43 B54.76 B52.01 B60 B48.86 B
Total Liabilities303.24 B347.77 B367.45 B364.09 B385.29 B315.89 B
Current Liabilities81.39 B64.42 B68.91 B63.44 B85.59 B92.34 B
Operating Income20.95 B26.1 B27.95 B6.41 B23.35 B20.64 B
Gross Margin51.853.4953.5653.4752.7459.41

ATT 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, ATT's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to ATT's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About ATT Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze ATT Inc's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of ATT using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of ATT Inc 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.
ATT Inc. provides telecommunications, media, and technology services worldwide. ATT Inc. was incorporated in 1983 and is headquartered in Dallas, Texas. ATT operates under Telecom Services classification in the United States and is traded on New York Stock Exchange. It employs 172400 people.

Be your own money manager

Our tools can tell you how much better you can do entering a position in ATT 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 Insider Screener Now

   

Insider Screener

Find insiders across different sectors to evaluate their impact on performance
All  Next Launch Module

Currently Active Assets on Macroaxis

Additionally, take a look at ATT Piotroski F Score and ATT Altman Z Score analysis. Note that the ATT Inc information on this page should be used as a complementary analysis to other ATT'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 Transformation module to use Price Transformation models to analyze depth of different equity instruments across global markets.

Complementary Tools for ATT Stock analysis

When running ATT Inc price analysis, check to measure ATT'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 ATT is operating at the current time. Most of ATT's value examination focuses on studying past and present price action to predict the probability of ATT's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move ATT's price. Additionally, you may evaluate how the addition of ATT to your portfolios can decrease your overall portfolio volatility.
Earnings Calls
Check upcoming earnings announcements updated hourly across public exchanges
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Portfolio Holdings
Check your current holdings and cash postion to detemine if your portfolio needs rebalancing
Go
Bond Analysis
Evaluate and analyze corporate bonds as a potential investment for your portfolios.
Go
Performance Analysis
Check effects of mean-variance optimization against your current asset allocation
Go
Fundamental Analysis
View fundamental data based on most recent published financial statements
Go
Portfolio Manager
State of the art Portfolio Manager to monitor and improve performance of your invested capital
Go
Portfolio Volatility
Check portfolio volatility and analyze historical return density to properly model market risk
Go
Technical Analysis
Check basic technical indicators and analysis based on most latest market data
Go
Price Transformation
Use Price Transformation models to analyze depth of different equity instruments across global markets
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
Headlines Timeline
Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity
Go
Is ATT'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 ATT. If investors know ATT 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 ATT 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
1.52
Market Capitalization
131 B
Quarterly Revenue Growth YOY
-0.17
Return On Assets
0.0421
Return On Equity
0.11
The market value of ATT Inc is measured differently than its book value, which is the value of ATT that is recorded on the company's balance sheet. Investors also form their own opinion of ATT's value that differs from its market value or its book value, called intrinsic value, which is ATT'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 ATT's market value can be influenced by many factors that don't directly affect ATT'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 ATT's value and its price as these two are different measures arrived at by different means. Investors typically determine ATT value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, ATT'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.