This module uses fundamental data of InfuSystems Holdings to approximate the value of its Beneish M Score. InfuSystems Holdings 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 InfuSystems Holdings Piotroski F Score and InfuSystems Holdings Altman Z Score analysis.
At this time, InfuSystems Holdings' Net Debt To EBITDA is comparatively stable compared to the past year. Debt To Equity is likely to gain to 0.58 in 2024, whereas Short Term Debt is likely to drop slightly above 1.4 M in 2024. At this time, InfuSystems Holdings' ROIC is comparatively stable compared to the past year. Inventory Turnover is likely to gain to 12.75 in 2024, whereas Capex To Depreciation is likely to drop 0.08 in 2024.
At this time, it appears that InfuSystems Holdings is an unlikely manipulator. The earnings manipulation may begin if InfuSystems Holdings' 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 InfuSystems Holdings 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 InfuSystems Holdings' 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.
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 InfuSystems Holdings' 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.
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 InfuSystems Holdings' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards InfuSystems Holdings in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find InfuSystems Holdings' degree of accounting gimmicks and manipulations.
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
7.56 Million
At this time, InfuSystems Holdings' Depreciation And Amortization is comparatively stable compared to the past year.
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 InfuSystems Holdings. 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.
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, InfuSystems Holdings' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to InfuSystems Holdings' managers, analysts, and investors.
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About InfuSystems Holdings Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze InfuSystems Holdings's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of InfuSystems Holdings using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of InfuSystems Holdings 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.
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When running InfuSystems Holdings' price analysis, check to measure InfuSystems Holdings' 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 InfuSystems Holdings is operating at the current time. Most of InfuSystems Holdings' value examination focuses on studying past and present price action to predict the probability of InfuSystems Holdings' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move InfuSystems Holdings' price. Additionally, you may evaluate how the addition of InfuSystems Holdings to your portfolios can decrease your overall portfolio volatility.