def call_fraud(self, other_args: List[str]):
"""Process fraud command."""
parser = argparse.ArgumentParser(
add_help=False,
formatter_class=argparse.RawTextHelpFormatter,
prog="fraud",
description=
("M-score:\n------------------------------------------------\n"
"The Beneish model is a statistical model that uses financial ratios calculated with"
" accounting data of a specific company in order to check if it is likely (high"
" probability) that the reported earnings of the company have been manipulated."
" A score of -5 to -2.22 indicated a low chance of fraud, a score of -2.22 to -1.78"
" indicates a moderate change of fraud, and a score above -1.78 indicated a high"
" chance of fraud.[Source: Wikipedia]\n\nDSRI:\nDays Sales in Receivables Index"
" gauges whether receivables and revenue are out of balance, a large number is"
" expected to be associated with a higher likelihood that revenues and earnings are"
" overstated.\n\nGMI:\nGross Margin Index shows if gross margins are deteriorating."
" Research suggests that firms with worsening gross margin are more likely to engage"
" in earnings management, therefore there should be a positive correlation between"
" GMI and probability of earnings management.\n\nAQI:\nAsset Quality Index measures"
" the proportion of assets where potential benefit is less certain. A positive"
" relation between AQI and earnings manipulation is expected.\n\nSGI:\nSales Growth"
" Index shows the amount of growth companies are having. Higher growth companies are"
" more likely to commit fraud so there should be a positive relation between SGI and"
" earnings management.\n\nDEPI:\nDepreciation Index is the ratio for the rate of"
" depreciation. A DEPI greater than 1 shows that the depreciation rate has slowed and"
" is positively correlated with earnings management.\n\nSGAI:\nSales General and"
" Administrative Expenses Index measures the change in SG&A over sales. There should"
" be a positive relationship between SGAI and earnings management.\n\nLVGI:\nLeverage"
" Index represents change in leverage. A LVGI greater than one indicates a lower"
" change of fraud.\n\nTATA: \nTotal Accruals to Total Assets is a proxy for the"
" extent that cash underlies earnings. A higher number is associated with a higher"
" likelihood of manipulation.\n\n\n"
"Z-score:\n------------------------------------------------\n"
"The Zmijewski Score is a bankruptcy model used to predict a firm's bankruptcy in two"
" years. The ratio uses in the Zmijewski score were determined by probit analysis ("
"think of probit as probability unit). In this case, scores less than .5 represent a"
" higher probability of default. One of the criticisms that Zmijewski made was that"
" other bankruptcy scoring models oversampled distressed firms and favored situations"
" with more complete data.[Source: YCharts]"
"McKee-score:\n------------------------------------------------\n"
"The McKee Score is a bankruptcy model used to predict a firm's bankruptcy in one year"
"It looks at a companie's size, profitability, and liquidity to determine the probability."
"This model is 80% accurate in predicting bankruptcy."),
)
parser.add_argument(
"-e",
"--explanation",
action="store_true",
dest="exp",
default=False,
help="Shows an explanation for the metrics",
)
ns_parser = parse_known_args_and_warn(parser, other_args,
EXPORT_ONLY_RAW_DATA_ALLOWED)
if ns_parser:
av_view.display_fraud(self.ticker, ns_parser.exp)
def test_display_fraud(mocker, df):
mocker.patch(
"gamestonk_terminal.stocks.fundamental_analysis.av_view.av_model.get_fraud_ratios",
return_value=(df),
)
av_view.display_fraud(ticker="TSLA")