Cognition Therapeutics Stock Beneish M Score

CGTX Stock  USD 0.45  0.01  2.17%   
This module uses fundamental data of Cognition Therapeutics to approximate the value of its Beneish M Score. Cognition Therapeutics 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 Cognition Therapeutics Piotroski F Score and Cognition Therapeutics Altman Z Score analysis.
For more information on how to buy Cognition Stock please use our How to Invest in Cognition Therapeutics guide.
  
At this time, Cognition Therapeutics' Debt To Equity is fairly stable compared to the past year. Long Term Debt To Capitalization is likely to rise to 0.02 in 2025, whereas Short and Long Term Debt Total is likely to drop slightly above 1.1 M in 2025. At this time, Cognition Therapeutics' Graham Net Net is fairly stable compared to the past year. Operating Cycle is likely to rise to 7,395 in 2025, despite the fact that Free Cash Flow Yield is likely to grow to (0.32).
At this time, it appears that Cognition Therapeutics is an unlikely manipulator. The earnings manipulation may begin if Cognition Therapeutics' 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 Cognition Therapeutics 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 Cognition Therapeutics' 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.
-9.44
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

N/A

Focus
Asset Quality

1.06

Focus
Expense Coverage

N/A

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

N/A

Focus
Depreciation Resistance

0.95

Focus
Net Sales Growth

N/A

Focus
Financial Leverage Condition

1.63

Focus

Cognition Therapeutics 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 Cognition Therapeutics' 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
Net ReceivablesM1.2 M
Way Up
Slightly volatile
Total Assets35 M40.4 M
Fairly Down
Slightly volatile
Total Current Assets34.1 M39.4 M
Fairly Down
Slightly volatile
Non Current Assets Total962.3 K1.1 M
Fairly Down
Slightly volatile
Property Plant Equipment177.6 K209.7 K
Fairly Down
Slightly volatile
Depreciation And Amortization215.5 K226.8 K
Notably Down
Slightly volatile
Selling General Administrative9.8 M15.6 M
Way Down
Slightly volatile
Total Current Liabilities7.2 M11.7 M
Way Down
Slightly volatile
Non Current Liabilities Total444.6 K468 K
Notably Down
Slightly volatile
Short Term Debt487.6 K825.7 K
Way Down
Slightly volatile
Long Term Debt10.9 M14.8 M
Way Down
Slightly volatile

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

About Cognition Therapeutics 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

215,460

At this time, Cognition Therapeutics' Depreciation And Amortization is fairly stable compared to the past year.

Cognition Therapeutics 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 Cognition Therapeutics. 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 Receivables1.2M2.3M3.7M1.3M1.2M2.0M
Total Assets7.1M59.1M50.4M35.2M40.4M35.0M
Total Current Assets6.9M59.0M47.6M34.2M39.4M34.1M
Non Current Assets Total211K145K2.8M941K1.1M962.3K
Depreciation And Amortization98K93K235K252K226.8K215.5K
Selling General Administrative4.5M10.0M13.2M13.5M15.6M9.8M
Total Current Liabilities3.3M7.9M7.8M10.2M11.7M7.2M
Non Current Liabilities Total72.1M4.2M2.4M520K468K444.6K
Net Debt7.7M(54.7M)(40.1M)(28.7M)(25.8M)(27.1M)
Operating Income(17.4M)(28.6M)(43.6M)(50.7M)(45.7M)(47.9M)
Total Cash From Operating Activities(3.4M)(3.6M)(18.5M)(16.0M)(14.4M)(13.7M)
Investments(10K)(27K)(171K)(127K)(114.3K)(120.0K)

About Cognition Therapeutics Fundamental Analysis

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

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