Varex Imaging Corp Stock Beneish M Score

VREX Stock  USD 16.68  0.15  0.91%   
This module uses fundamental data of Varex Imaging to approximate the value of its Beneish M Score. Varex Imaging 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 Varex Imaging Piotroski F Score and Varex Imaging Altman Z Score analysis.
  
At this time, Varex Imaging's Short Term Debt is fairly stable compared to the past year. Short and Long Term Debt Total is likely to rise to about 493.5 M in 2024, whereas Net Debt is likely to drop slightly above 271 M in 2024.
At this time, it appears that Varex Imaging Corp is an unlikely manipulator. The earnings manipulation may begin if Varex Imaging'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 Varex Imaging 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 Varex Imaging'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.
-2.38
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.0

Focus
Asset Quality

1.16

Focus
Expense Coverage

0.91

Focus
Gross Margin Strengs

1.04

Focus
Accruals Factor

0.91

Focus
Depreciation Resistance

0.83

Focus
Net Sales Growth

1.01

Focus
Financial Leverage Condition

0.98

Focus

Varex Imaging 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 Varex Imaging'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 Receivables160.1 M157.7 M
Fairly Up
Slightly volatile
Total Revenue823.1 M811 M
Fairly Up
Slightly volatile
Total Assets1.1 B1.2 B
Fairly Down
Slightly volatile
Total Current Assets533.5 M649.9 M
Significantly Down
Slightly volatile
Non Current Assets Total531.2 M567.1 M
Notably Down
Slightly volatile
Property Plant Equipment148.4 M189.2 M
Significantly Down
Slightly volatile
Depreciation And Amortization30.4 M31.1 M
Fairly Down
Slightly volatile
Selling General Administrative126.8 M137.8 M
Significantly Down
Slightly volatile
Total Current Liabilities156.4 M195.9 M
Significantly Down
Slightly volatile
Non Current Liabilities Total376.3 M471.9 M
Significantly Down
Slightly volatile
Short Term Debt52.8 M50.3 M
Sufficiently Up
Slightly volatile
Long Term Debt457.6 M397.1 M
Fairly Up
Slightly volatile
Total Cash From Operating Activities58.6 M47.3 M
Fairly Up
Slightly volatile
Long Term Investments37.6 M26.8 M
Significantly Up
Slightly volatile
Gross Profit Margin0.330.3168
Sufficiently Up
Slightly volatile

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

About Varex Imaging 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

30.37 Million

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

Varex Imaging 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 Varex Imaging. 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 Receivables141M123.8M155.3M173.3M157.7M160.1M
Total Revenue738.3M818.1M859.4M893.4M811M823.1M
Total Assets1.1B1.1B1.2B1.2B1.2B1.1B
Total Current Assets522M554.2M609.9M658.3M649.9M533.5M
Net Debt383.9M314.8M347M316.9M301.7M271.0M
Short Term Debt8.8M9.2M6.3M5.3M50.3M52.8M
Long Term Debt452.8M431.7M412.3M441.1M397.1M457.6M
Operating Income(30.9M)33.4M50.7M77.1M32.1M58.7M
Investments(93.2M)(26.9M)(1.4M)(44.9M)(27.5M)(28.9M)

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

About Varex Imaging Fundamental Analysis

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

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Additional Tools for Varex Stock Analysis

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