Nova Minerals Limited Stock Beneish M Score
| NVAWW Stock | 2.18 0.12 5.22% |
Nova | Beneish M Score |
At this time, it appears that Nova Minerals Limited is an unlikely manipulator. The earnings manipulation may begin if Nova Minerals' 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 Nova Minerals 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 Nova Minerals' 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.
-4.35
Beneish M Score - Unlikely Manipulator
About Nova Minerals 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.
Capex To Depreciation |
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Nova Minerals 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 Nova Minerals. 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.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Gross Profit Margin | 0.56 | 0.11 | 0.93 | 0.77 | 0.64 | 0.59 |
About Nova Minerals Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Nova Minerals Limited's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Nova Minerals using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Nova Minerals Limited 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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When running Nova Minerals' price analysis, check to measure Nova Minerals' 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 Nova Minerals is operating at the current time. Most of Nova Minerals' value examination focuses on studying past and present price action to predict the probability of Nova Minerals' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Nova Minerals' price. Additionally, you may evaluate how the addition of Nova Minerals to your portfolios can decrease your overall portfolio volatility.