Lumen Technologies Stock Beneish M Score

0HVP Stock   6.82  0.29  4.08%   
This module uses fundamental data of Lumen Technologies to approximate the value of its Beneish M Score. Lumen Technologies 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 Trending Equities to better understand how to build diversified portfolios, which includes a position in Lumen Technologies. 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.
For more information on how to buy Lumen Stock please use our How to Invest in Lumen Technologies guide.
  
At this time, Lumen Technologies' Net Debt is comparatively stable compared to the past year. Short and Long Term Debt Total is likely to gain to about 29.9 B in 2024, whereas Short Term Debt is likely to drop slightly above 403.8 M in 2024.
At this time, Lumen Technologies' M Score is inapplicable. The earnings manipulation may begin if Lumen Technologies' 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 Lumen Technologies 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 Lumen Technologies' 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.
-4.05
Beneish M Score - Inapplicable
Elasticity of Receivables

1.16

Focus
Asset Quality

1.63

Focus
Expense Coverage

0.84

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.84

Focus
Depreciation Resistance

0.98

Focus
Net Sales Growth

1.03

Focus
Financial Leverage Condition

1.12

Focus

Lumen Technologies 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 Lumen Technologies' 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 Receivables1.6 B1.3 B
Fairly Up
Slightly volatile
Total Revenue15 B14.6 B
Fairly Up
Pretty Stable
Total Assets43.8 B34 B
Significantly Up
Pretty Stable
Total Current AssetsB4.6 B
Significantly Up
Slightly volatile
Non Current Assets Total40.1 B29.2 B
Significantly Up
Pretty Stable
Property Plant Equipment26.5 B23.6 B
Moderately Up
Slightly volatile
Depreciation And Amortization3.4 BB
Fairly Up
Slightly volatile
Selling General Administrative2.7 B3.2 B
Fairly Down
Slightly volatile
Total Current Liabilities5.8 B3.5 B
Way Up
Slightly volatile
Non Current Liabilities Total38 B30.1 B
Significantly Up
Slightly volatile
Short Term Debt403.8 M425 M
Notably Down
Pretty Stable
Long Term Debt33.5 B33.5 B
Slightly Down
Slightly volatile
Total Cash From Operating Activities4.3 B2.2 B
Way Up
Slightly volatile
Short Term Investments3.2 M3.6 M
Fairly Down
Slightly volatile

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

About Lumen Technologies 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

3.44 Billion

At this time, Lumen Technologies' Depreciation And Amortization is comparatively stable compared to the past year.

Lumen Technologies 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 Lumen Technologies. 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 Receivables2.3B2.0B1.5B1.5B1.3B1.6B
Total Revenue21.5B20.7B19.7B17.5B14.6B15.0B
Total Assets64.7B59.4B58.0B45.6B34.0B43.8B
Total Current Assets4.5B2.9B11.3B5.2B4.6B5.0B
Non Current Assets Total60.3B56.5B46.7B40.4B29.2B40.1B
Property Plant Equipment27.8B28.0B22.3B20.5B23.6B26.5B
Depreciation And Amortization5.2B5.1B4.4B3.2B3.0B3.4B
Selling General Administrative3.5B3.3B3.1B3.0B3.2B2.7B
Total Current Liabilities7.3B6.6B7.2B4.9B3.5B5.8B
Non Current Liabilities Total44.0B41.6B39.0B30.3B30.1B38.0B
Net Debt34.8B33.2B30.2B20.8B19.1B26.7B
Short Term Debt2.7B2.8B1.9B498M425M403.8M
Long Term Debt37.3B35.4B32.2B29.1B33.5B33.5B
Operating Income3.8B3.6B4.3B3.3B(9.6B)(9.1B)
Total Cash From Operating Activities6.7B6.5B6.5B4.7B2.2B4.3B

About Lumen Technologies Fundamental Analysis

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

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