Altisource Asset Management (Altisource Asset Management) Beneish M-Score : 0.00 (As of Apr. 27, 2024)

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What is Altisource Asset Management Beneish M-Score?

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for Altisource Asset Management's Beneish M-Score or its related term are showing as below:

During the past 12 years, the highest Beneish M-Score of Altisource Asset Management was 57.36. The lowest was -3.91. And the median was -2.33.

Altisource Asset Management Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Altisource Asset Management for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 *

0.528 *

0.404 *

0.892 *

0.115 *

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 *

4.679 *

0.327 *

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $0.00 Mil.
Revenue was -8.22 + -10.541 + 0.639 + 0.766 = $-17.36 Mil.
Gross Profit was -8.22 + -10.541 + 0.639 + 0.766 = $-17.36 Mil.
Total Current Assets was $8.71 Mil.
Total Assets was $25.54 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.68 Mil.
Selling, General, & Admin. Expense(SGA) was $9.05 Mil.
Total Current Liabilities was $0.00 Mil.
Long-Term Debt & Capital Lease Obligation was $0.90 Mil.
Net Income was -12.274 + -13.47 + -3.814 + -2.988 = $-32.55 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was -3.502 + 10.212 + -11.539 + -6.944 = $-11.77 Mil.

Total Receivables was $0.00 Mil.
Revenue was 0.96 + -0.44 + 0.035 + 0.008 = $0.56 Mil.
Gross Profit was 0.96 + -0.44 + 0.035 + -0.924 = $-0.37 Mil.
Total Current Assets was $10.73 Mil.
Total Assets was $117.65 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.44 Mil.
Selling, General, & Admin. Expense(SGA) was $9.38 Mil.
Total Current Liabilities was $62.00 Mil.
Long-Term Debt & Capital Lease Obligation was $1.32 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(0 / -17.356)	/	(0 / 0.563)
	=		/	0
	=

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(-0.369 / 0.563)	/	(-17.356 / -17.356)
	=	-0.655417	/
	=

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (8.713 + 0) / 25.539)	/	(1 - (10.727 + 0) / 117.647)
	=	0.658836	/	0.90882
	=

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	-17.356	/	0.563
	=

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(0.44 / (0.44 + 0))	/	(0.68 / (0.68 + 0))
	=	1	/	1
	=

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(9.047 / -17.356)	/	(9.384 / 0.563)
	=		/	16.667851
	=

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((0.9 + 0) / 25.539)	/	((1.323 + 62.002) / 117.647)
	=	0.03524	/	0.538263
	=

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(-32.546 - 0	-	-11.773)	/	25.539
	=	-0.813383

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Altisource Asset Management Beneish M-Score Related Terms

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Altisource Asset Management (Altisource Asset Management) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » Altisource Asset Management Corp (AMEX:AAMC) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

5100 Tamarind Reef, Christiansted, VIR, 00820

Website

https://www.altisourceamc.com

Altisource Asset Management Corp is an asset management company. It provides asset management, portfolio management, and corporate governance services to investment vehicles that own real estate-related assets. The firm's business is to provide its services to the client in a manner that builds long-term value and a stable income stream while generating management fees for the firm and developing additional investment strategies and vehicles.

Executives

King Theodore Walker Cheng-de	10 percent owner	UNIT 1502, 15TH FLOOR, 99 HENNESSY ROAD, WANCHAI K3 999077
Charles L Frischer	director	3156 EAST LAURELHURST DRIVE, NE, SEATTLE WA 98105
Elsie Elaine Erbey	10 percent owner	P.O. BOX AP-59223, PMB 3406, NASSAU C5 00000
Jason A Kopcak	officer: President/COO	112 TRADD ST, CHARLESTON SC 29401
Ricardo Byrd	director	C/O AAMC, 5100 TAMARIND REEF, CHRISTIANSTED VI 00820
De Jongh John P Jr.	director	C/O ALTISOURCE ASSET MANAGEMENT, 5100 TAMARIND REEF, CHRISTIANSTED VI 00820
Stephen Ramiro Krallman	officer: CFO and Principal Acct Officer	3217 PLAZA DE RAFAEL, LAS VEGAS NV 89102
Kevin Francis Sullivan	officer: Gen Counsel/Chief Compliance	30 BATTLEBROOK LN, PRINCETON NJ 08540
Thomas K Mccarthy	officer: Interim CEO	800 JUNO OCEAN WALK UNIT 104A, JUNO BEACH FL 33408
Paris Graham Singer	officer: General Counsel and Secretary	5100 TAMARIND REEF, CHRISTIANSTED VI 00820
Christopher D. Moltke-hansen	officer: Chief Financial Officer	C/O AAMC, 5100 TAMARIND REEF, CHRISTIANSTED VI 00820
Indroneel Chatterjee	director, officer: Co-Chief Executive Officer	40, AVENUE MONTEREY, LUXEMBOURG CITY N4 L-2163
John A. Engerman	director	C/O AAMC, 5100 TAMARIND REEF, CHRISTIANSTED VI 00820
William C Erbey	10 percent owner	PO BOX 25437, CHRISTIANSTED VI 00824
Dale Kurland	director	C/O ALTISOURCE ASSET MANAGEMENT CORP, 402 STRAND STREET, FREDERIKSTED, ST. CROIX VI 00840