Brilliant Earth Group Stock Beneish M Score

BRLT Stock  USD 1.86  0.01  0.54%   
This module uses fundamental data of Brilliant Earth to approximate the value of its Beneish M Score. Brilliant Earth 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 Brilliant Earth Piotroski F Score and Brilliant Earth Altman Z Score analysis.
  
At this time, Brilliant Earth's Short Term Debt is comparatively stable compared to the past year. Debt To Assets is likely to gain to 0.46 in 2024, whereas Long Term Debt is likely to drop slightly above 53.4 M in 2024. At this time, Brilliant Earth's Inventory Turnover is comparatively stable compared to the past year. Payables Turnover is likely to gain to 44.08 in 2024, despite the fact that EV To Sales is likely to grow to (0.02).
At this time, Brilliant Earth's M Score is unavailable. The earnings manipulation may begin if Brilliant Earth'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 Brilliant Earth 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 Brilliant Earth'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.
-3.55
Beneish M Score - Unavailable
Elasticity of Receivables

1.12

Focus
Asset Quality

-0.44

Focus
Expense Coverage

0.76

Focus
Gross Margin Strengs

0.68

Focus
Accruals Factor

0.76

Focus
Depreciation Resistance

1.71

Focus
Net Sales Growth

0.85

Focus
Financial Leverage Condition

0.71

Focus

Brilliant Earth 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 Brilliant Earth'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 Revenue378.3 M446.4 M
Fairly Down
Slightly volatile
Total Assets196.9 M273.6 M
Way Down
Slightly volatile
Total Current Assets165.8 M204.9 M
Significantly Down
Slightly volatile
Non Current Assets Total72.2 M68.7 M
Sufficiently Up
Slightly volatile
Property Plant Equipment53.6 M51 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization2.5 M4.2 M
Way Down
Slightly volatile
Selling General Administrative86.2 M133.2 M
Way Down
Slightly volatile
Total Current Liabilities69.3 M76.9 M
Moderately Down
Slightly volatile
Non Current Liabilities Total77.4 M99.2 M
Significantly Down
Slightly volatile
Short Term Debt16.5 M14 M
Fairly Up
Slightly volatile
Long Term Debt53.4 M55.6 M
Sufficiently Down
Slightly volatile
Total Cash From Operating Activities25.1 M26.2 M
Sufficiently Down
Slightly volatile
Gross Profit Margin0.390.5757
Way Down
Slightly volatile

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

About Brilliant Earth 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

2.5 Million

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

About Brilliant Earth Fundamental Analysis

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

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