| VUX Stock | | | CAD 0.19 0.02 9.52% |
This module uses fundamental data of Vital Energy to approximate the value of its Beneish M Score. Vital Energy 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
World Market Map to better understand how to build diversified portfolios, which includes a position in Vital Energy. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as
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At this time, Vital Energy's
Debt Equity Ratio is fairly stable compared to the past year.
Debt Ratio is likely to climb to 0.32 in 2024, whereas
Long Term Debt To Capitalization is likely to drop 0.01 in 2024. At this time, Vital Energy's
POCF Ratio is fairly stable compared to the past year.
Interest Coverage is likely to climb to 17.93 in 2024, whereas
Free Cash Flow Yield is likely to drop
(0.35) in 2024.
At this time, Vital Energy's M Score is inapplicable. The earnings manipulation may begin if Vital Energy'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 Vital Energy 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 Vital Energy'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.
-2.75
Beneish M Score - Inapplicable
| Elasticity of Receivables | |
| Financial Leverage Condition | |
Vital Energy 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 Vital Energy'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.
Vital Energy 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 Vital Energy's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Vital Energy in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Vital Energy's degree of accounting gimmicks and manipulations.
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About Vital Energy 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.
Vital Energy 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 Vital Energy. 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.
About Vital Energy Fundamental Analysis
The Macroaxis Fundamental Analysis modules help investors analyze Vital Energy's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Vital Energy using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at
the intrinsic value of Vital Energy 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.
Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked. Macroaxis thematic optimization helps investors identify companies most likely to benefit from changes or shifts in various micro-economic or local macro-level trends. Originating optimal thematic portfolios involves aligning investors' personal views, ideas, and beliefs with their actual investments.
Additional Tools for Vital Stock Analysis
When running Vital Energy's price analysis, check to
measure Vital Energy'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 Vital Energy is operating at the current time. Most of Vital Energy's value examination focuses on studying past and present price action to
predict the probability of Vital Energy's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Vital Energy's price. Additionally, you may evaluate how the addition of Vital Energy to your portfolios can decrease your overall portfolio volatility.