Flow Beverage Corp Stock Beneish M Score

FLOW Stock   0.14  0.01  6.67%   
This module uses fundamental data of Flow Beverage to approximate the value of its Beneish M Score. Flow Beverage 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 Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Flow Beverage Corp. 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.
  
At this time, Flow Beverage's Total Debt To Capitalization is very stable compared to the past year. As of the 11th of December 2024, Debt Ratio is likely to grow to 0.47, while Long Term Debt is likely to drop about 17.4 M. At this time, Flow Beverage's Days Of Inventory On Hand is very stable compared to the past year. As of the 11th of December 2024, Sales General And Administrative To Revenue is likely to grow to 1.26, while Price To Sales Ratio is likely to drop 0.28.
At this time, Flow Beverage's M Score is inapplicable. The earnings manipulation may begin if Flow Beverage'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 Flow Beverage 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 Flow Beverage'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.
-3.23
Beneish M Score - Inapplicable
Elasticity of Receivables

1.36

Focus
Asset Quality

1.3

Focus
Expense Coverage

1.69

Focus
Gross Margin Strengs

0.78

Focus
Accruals Factor

1.69

Focus
Depreciation Resistance

1.55

Focus
Net Sales Growth

0.62

Focus
Financial Leverage Condition

0.96

Focus

Flow Beverage 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 Flow Beverage'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
Net Receivables8.2 M9.7 M
Fairly Down
Slightly volatile
Total Revenue33.4 M53.7 M
Way Down
Slightly volatile
Total Assets56.7 M63.2 M
Moderately Down
Slightly volatile
Total Current Assets37.5 M55.9 M
Way Down
Slightly volatile
Property Plant Equipment35.5 M19.5 M
Way Up
Slightly volatile
Depreciation And Amortization7.2 M6.8 M
Sufficiently Up
Slightly volatile
Selling General Administrative53.7 M51.1 M
Sufficiently Up
Slightly volatile
Total Current Liabilities27.6 M38 M
Way Down
Slightly volatile
Short Term Debt4.4 M4.6 M
Notably Down
Slightly volatile
Long Term Debt17.4 M31.6 M
Way Down
Pretty Stable
Gross Profit Margin0.140.18
Significantly Down
Slightly volatile

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

About Flow Beverage 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

7.16 Million

At this time, Flow Beverage's Depreciation And Amortization is very stable compared to the past year.

Flow Beverage 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 Flow Beverage. 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.
201920202021202220232024 (projected)
Net Receivables3.0M8.7M11.9M8.4M9.7M8.2M
Total Revenue23.0M42.7M47.1M46.7M53.7M33.4M
Total Assets89.9M132.9M82.3M54.9M63.2M56.7M
Total Current Assets35.6M72.6M60.0M48.6M55.9M37.5M
Net Debt43.7M(4.4M)16.9M22.8M26.2M27.5M
Long Term Debt22.3M4.6M8.2M27.5M31.6M17.4M
Operating Income(94.6K)(50.1M)(40.4M)(38.4M)(34.5M)(32.8M)

About Flow Beverage Fundamental Analysis

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

Pair Trading with Flow Beverage

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Flow Beverage position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Flow Beverage will appreciate offsetting losses from the drop in the long position's value.
The ability to find closely correlated positions to Flow Beverage could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Flow Beverage when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Flow Beverage - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Flow Beverage Corp to buy it.
The correlation of Flow Beverage is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Flow Beverage moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Flow Beverage Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Flow Beverage can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Other Information on Investing in Flow Stock

Flow Beverage financial ratios help investors to determine whether Flow 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 Flow with respect to the benefits of owning Flow Beverage security.