Zegona Communications Plc Stock Beneish M Score

ZEG Stock   348.00  4.00  1.14%   
This module uses fundamental data of Zegona Communications to approximate the value of its Beneish M Score. Zegona Communications 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 Your Current Watchlist to better understand how to build diversified portfolios, which includes a position in Zegona Communications Plc. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
  
As of November 30, 2024, Short and Long Term Debt Total is expected to decline to about 90.6 K. The current year's Net Debt is expected to grow to about (4.4 M).
At this time, Zegona Communications' M Score is inapplicable. The earnings manipulation may begin if Zegona Communications' 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 Zegona Communications 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 Zegona Communications' 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.
-4.56
Beneish M Score - Inapplicable
Elasticity of Receivables

N/A

Focus
Asset Quality

0.91

Focus
Expense Coverage

N/A

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

N/A

Focus
Depreciation Resistance

1.0

Focus
Net Sales Growth

N/A

Focus
Financial Leverage Condition

0.51

Focus

Zegona Communications 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 Zegona Communications' 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 Receivables47.9 K50.4 K
Notably Down
Slightly volatile
Total Assets1.3 B1.2 B
Sufficiently Up
Very volatile
Total Current Assets1.3 B1.2 B
Sufficiently Up
Slightly volatile
Non Current Assets Total4.8 M5.1 M
Notably Down
Slightly volatile
Property Plant Equipment11.1 K11.7 K
Notably Down
Slightly volatile
Depreciation And Amortization13.3 K14 K
Notably Down
Slightly volatile
Selling General Administrative6.3 M4.7 M
Significantly Up
Pretty Stable
Total Current Liabilities11.4 M17.6 M
Way Down
Slightly volatile
Short Term Investments9.1 M8.6 M
Sufficiently Up
Slightly volatile
Long Term Investments226.2 M215.4 M
Sufficiently Up
Slightly volatile

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

About Zegona Communications 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

13,300

At present, Zegona Communications' Depreciation And Amortization is projected to decrease significantly based on the last few years of reporting.

Zegona Communications 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 Zegona Communications. 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 Receivables22K128K151K56K50.4K47.9K
Total Assets365.5M345.7M16.0M10.9M1.2B1.3B
Total Current Assets31.1M23.0M10.8M6.0M1.2B1.3B
Net Debt(15.5M)(4.3M)(10.5M)(5.9M)(4.6M)(4.4M)
Operating Income14.9M11.0M(34.0M)(3.3M)(13.4M)(12.7M)

About Zegona Communications Fundamental Analysis

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

Zegona Communications financial ratios help investors to determine whether Zegona Stock is cheap or expensive when compared to a particular measure, such as profits or enterprise value. In other words, they help investors to determine the cost of investment in Zegona with respect to the benefits of owning Zegona Communications security.