Dianthus Therapeutics Stock Beneish M Score

DNTH Stock   23.60  0.24  1.03%   
This module uses fundamental data of Dianthus Therapeutics to approximate the value of its Beneish M Score. Dianthus Therapeutics 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 Dianthus Therapeutics Piotroski F Score and Dianthus Therapeutics Altman Z Score analysis.
For more detail on how to invest in Dianthus Stock please use our How to Invest in Dianthus Therapeutics guide.
  
The Dianthus Therapeutics' current Net Debt To EBITDA is estimated to increase to 2.87, while Net Debt is forecasted to increase to (125.2 M). As of now, Dianthus Therapeutics' EV To Free Cash Flow is increasing as compared to previous years. The Dianthus Therapeutics' current Net Debt To EBITDA is estimated to increase to 2.87, while PTB Ratio is projected to decrease to 0.30.
At this time, it appears that Dianthus Therapeutics is an unlikely manipulator. The earnings manipulation may begin if Dianthus Therapeutics' 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 Dianthus Therapeutics 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 Dianthus Therapeutics' 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.
-2.88
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.68

Focus
Asset Quality

1.32

Focus
Expense Coverage

0.59

Focus
Gross Margin Strengs

1.05

Focus
Accruals Factor

0.59

Focus
Depreciation Resistance

1.08

Focus
Net Sales Growth

1.39

Focus
Financial Leverage Condition

1.52

Focus

Dianthus Therapeutics 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 Dianthus Therapeutics' 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 Receivables454.1 K478 K
Notably Down
Slightly volatile
Total Revenue3.9 M2.8 M
Significantly Up
Slightly volatile
Total Assets112.5 M179.4 M
Way Down
Slightly volatile
Total Current Assets107.1 M177.5 M
Way Down
Slightly volatile
Non Current Assets Total1.9 MM
Notably Down
Slightly volatile
Property Plant Equipment1.2 M1.1 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization337.2 K355 K
Notably Down
Slightly volatile
Selling General Administrative14.9 M18.2 M
Significantly Down
Slightly volatile
Total Current LiabilitiesM9.6 M
Notably Down
Slightly volatile
Non Current Liabilities Total858.8 K904 K
Notably Down
Slightly volatile
Short Term Debt651.2 K834 K
Significantly Down
Slightly volatile
Short Term Investments53.6 M41.4 M
Significantly Up
Slightly volatile

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

About Dianthus Therapeutics 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

337,250

As of now, Dianthus Therapeutics' Depreciation And Amortization is increasing as compared to previous years.

Dianthus Therapeutics ESG Sustainability

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, Dianthus Therapeutics' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Dianthus Therapeutics' managers, analysts, and investors.
Environmental
Governance
Social

About Dianthus Therapeutics Fundamental Analysis

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

Currently Active Assets on Macroaxis

When determining whether Dianthus Therapeutics offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Dianthus Therapeutics' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Dianthus Therapeutics Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Dianthus Therapeutics Stock:
Check out Dianthus Therapeutics Piotroski F Score and Dianthus Therapeutics Altman Z Score analysis.
For more detail on how to invest in Dianthus Stock please use our How to Invest in Dianthus Therapeutics guide.
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Is Biotechnology space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Dianthus Therapeutics. If investors know Dianthus will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Dianthus Therapeutics listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
7.22
Revenue Per Share
0.19
Quarterly Revenue Growth
1.351
Return On Assets
(0.19)
Return On Equity
(0.26)
The market value of Dianthus Therapeutics is measured differently than its book value, which is the value of Dianthus that is recorded on the company's balance sheet. Investors also form their own opinion of Dianthus Therapeutics' value that differs from its market value or its book value, called intrinsic value, which is Dianthus Therapeutics' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Dianthus Therapeutics' market value can be influenced by many factors that don't directly affect Dianthus Therapeutics' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Dianthus Therapeutics' value and its price as these two are different measures arrived at by different means. Investors typically determine if Dianthus Therapeutics is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Dianthus Therapeutics' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.