This module uses fundamental data of Zhende Medical to approximate the value of its Beneish M Score. Zhende Medical 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. Check out Trending Equities to better understand how to build diversified portfolios, which includes a position in Zhende Medical Co. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Zhende
Beneish M Score
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At present, Zhende Medical's Short and Long Term Debt is projected to decrease significantly based on the last few years of reporting. The current year's Net Debt is expected to grow to about 112.4 M, whereas Long Term Debt is forecasted to decline to about 179.1 M.
At this time, Zhende Medical's M Score is inapplicable. The earnings manipulation may begin if Zhende Medical'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 Zhende Medical 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 Zhende Medical'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.
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 Zhende Medical'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.
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 Zhende Medical's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Zhende Medical in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Zhende Medical's degree of accounting gimmicks and manipulations.
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.
Reconciled Depreciation
293.38 Million
At present, Zhende Medical's Reconciled Depreciation is projected to increase significantly based on the last few years of reporting.
Zhende Medical 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 Zhende Medical. 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.
The Macroaxis Fundamental Analysis modules help investors analyze Zhende Medical Co's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Zhende Medical using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Zhende Medical 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.
Zhende Medical financial ratios help investors to determine whether Zhende Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Zhende with respect to the benefits of owning Zhende Medical security.