Avanos Medical Stock Beneish M Score

AVNS Stock  USD 14.67  0.10  0.68%   
This module uses fundamental data of Avanos Medical to approximate the value of its Beneish M Score. Avanos 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 Avanos Medical Piotroski F Score and Avanos Medical Altman Z Score analysis.
For more information on how to buy Avanos Stock please use our How to Invest in Avanos Medical guide.
  
At this time, Avanos Medical's Long Term Debt is comparatively stable compared to the past year. Short and Long Term Debt Total is likely to gain to about 254.2 M in 2025, whereas Short Term Debt is likely to drop slightly above 19.3 M in 2025. At this time, Avanos Medical's Capex To Revenue is comparatively stable compared to the past year. Cash Per Share is likely to gain to 2.42 in 2025, whereas Operating Cash Flow Per Share is likely to drop 2.08 in 2025.
At this time, Avanos Medical's M Score is unavailable. The earnings manipulation may begin if Avanos 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 Avanos 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 Avanos 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.
-3.94
Beneish M Score - Unavailable
Elasticity of Receivables

0.76

Focus
Asset Quality

1.08

Focus
Expense Coverage

0.69

Focus
Gross Margin Strengs

0.67

Focus
Accruals Factor

0.69

Focus
Depreciation Resistance

1.13

Focus
Net Sales Growth

1.28

Focus
Financial Leverage Condition

0.89

Focus

Avanos Medical 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 Avanos 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.
Current ValueLast YearChange From Last Year 10 Year Trend
Total Revenue883.6 M687.8 M
Significantly Up
Slightly volatile
Non Current Assets Total1.1 B760.8 M
Significantly Up
Slightly volatile
Depreciation And Amortization42.5 M45.5 M
Notably Down
Slightly volatile
Selling General Administrative284 M318.5 M
Fairly Down
Slightly volatile
Non Current Liabilities Total276.1 M159.8 M
Way Up
Very volatile
Gross Profit Margin0.370.5544
Way Down
Slightly volatile

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

About Avanos Medical 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.

Depreciation And Amortization

42.54 Million

At this time, Avanos Medical's Depreciation And Amortization is comparatively stable compared to the past year.

Avanos 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 Avanos 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.
202020212022202320242025 (projected)
Net Receivables163.8M167.9M118.2M142.8M132.8M130.4M
Total Revenue714.8M744.6M820M673.3M687.8M883.6M
Total Assets1.7B1.6B1.8B1.7B1.2B1.4B
Total Current Assets467.2M418.6M499.8M487M393.4M446.4M
Net Debt137.3M69M152.3M121.4M62.5M59.4M
Short Term Debt31M29.4M18.2M21.4M20.3M19.3M
Long Term Debt180M130M226.3M159.4M125.3M243.2M
Operating Income(46.1M)8.9M74M4.2M(396.2M)(376.4M)
Investments(4M)(21M)(135.4M)(64.3M)(27.5M)(26.1M)
Gross Profit Margin0.60.580.520.490.560.37

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

About Avanos Medical Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Avanos Medical's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Avanos Medical using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Avanos Medical 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.

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Additional Tools for Avanos Stock Analysis

When running Avanos Medical's price analysis, check to measure Avanos Medical'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 Avanos Medical is operating at the current time. Most of Avanos Medical's value examination focuses on studying past and present price action to predict the probability of Avanos Medical's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Avanos Medical's price. Additionally, you may evaluate how the addition of Avanos Medical to your portfolios can decrease your overall portfolio volatility.