medium · Financial Accounting financial-statement-analysis-ratios
In the Beneish M-Score model, what does an Asset Quality Index (AQI) significantly greater than 1.0 indicate?
- The firm has increased its proportion of 'soft' assets, potentially hiding expenses.
- The firm's physical assets are becoming more productive.
- The firm is becoming less leveraged over time.
- The firm has improved the collectibility of its receivables.
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