Scilex Holding Stock Beneish M Score

SCLX Stock   0.59  0.02  3.51%   
This module uses fundamental data of Scilex Holding to approximate the value of its Beneish M Score. Scilex Holding 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 Scilex Holding Piotroski F Score and Scilex Holding Altman Z Score analysis.
For more information on how to buy Scilex Stock please use our How to Invest in Scilex Holding guide.
  
At this time, Scilex Holding's Short Term Debt is fairly stable compared to the past year. Interest Debt Per Share is likely to rise to 0.98 in 2024, whereas Short and Long Term Debt Total is likely to drop slightly above 84.6 M in 2024. At this time, Scilex Holding's Capex To Depreciation is fairly stable compared to the past year. ROIC is likely to rise to 2.28 in 2024, whereas Price To Sales Ratio is likely to drop 5.40 in 2024.
At this time, it appears that Scilex Holding is an unlikely manipulator. The earnings manipulation may begin if Scilex Holding'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 Scilex Holding 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 Scilex Holding'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.
-6.8
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.87

Focus
Asset Quality

1.21

Focus
Expense Coverage

0.83

Focus
Gross Margin Strengs

1.29

Focus
Accruals Factor

0.83

Focus
Depreciation Resistance

0.98

Focus
Net Sales Growth

0.76

Focus
Financial Leverage Condition

0.65

Focus

Scilex Holding 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 Scilex Holding'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 Receivables22.9 M34.6 M
Way Down
Slightly volatile
Total Revenue35.4 M46.7 M
Way Down
Slightly volatile
Total Assets95.5 M101.3 M
Notably Down
Slightly volatile
Total Current Assets33.5 M46.8 M
Way Down
Slightly volatile
Non Current Assets Total45.1 M54.5 M
Significantly Down
Slightly volatile
Property Plant Equipment660.1 K694.8 K
Notably Down
Slightly volatile
Depreciation And Amortization4.6 M4.1 M
Significantly Up
Pretty Stable
Selling General Administrative75.4 M119.6 M
Way Down
Pretty Stable
Total Current Liabilities149.4 M250.4 M
Way Down
Slightly volatile
Non Current Liabilities Total22.7 M23.9 M
Notably Down
Slightly volatile
Short Term Debt115.4 M109.9 M
Sufficiently Up
Slightly volatile
Long Term Debt14.6 M15.3 M
Notably Down
Slightly volatile
Gross Profit Margin0.860.6645
Significantly Up
Slightly volatile

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

About Scilex Holding 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

4.56 Million

At this time, Scilex Holding's Depreciation And Amortization is fairly stable compared to the past year.

About Scilex Holding Fundamental Analysis

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

Also Currently Popular

Analyzing currently trending equities could be an opportunity to develop a better portfolio based on different market momentums that they can trigger. Utilizing the top trending stocks is also useful when creating a market-neutral strategy or pair trading technique involving a short or a long position in a currently trending equity.

Additional Tools for Scilex Stock Analysis

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