Dogness International Corp Stock Beneish M Score

DOGZ Stock  USD 44.39  4.45  11.14%   
This module uses fundamental data of Dogness International to approximate the value of its Beneish M Score. Dogness International 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 Dogness International Piotroski F Score and Dogness International Altman Z Score analysis.
  
At this time, Dogness International's Short and Long Term Debt is fairly stable compared to the past year. Short Term Debt is likely to rise to about 3.8 M in 2024, despite the fact that Net Debt is likely to grow to (1.4 M). At this time, Dogness International's Receivables Turnover is fairly stable compared to the past year. Graham Number is likely to rise to 11.09 in 2024, whereas PTB Ratio is likely to drop 2.27 in 2024.
At this time, it appears that Dogness International is a possible manipulator. The earnings manipulation may begin if Dogness International'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 Dogness International 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 Dogness International'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.
0.76
Beneish M Score - Possible Manipulator
Elasticity of Receivables

0.61

Focus
Asset Quality

9.12

Focus
Expense Coverage

0.41

Focus
Gross Margin Strengs

1.66

Focus
Accruals Factor

0.41

Focus
Depreciation Resistance

1.48

Focus
Net Sales Growth

1.57

Focus
Financial Leverage Condition

1.39

Focus

Dogness International 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 Dogness International'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.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables2.8 M2.9 M
Notably Down
Very volatile
Total Revenue23.3 M14.8 M
Way Up
Slightly volatile
Total Assets70.3 M99.2 M
Way Down
Slightly volatile
Total Current Assets19.3 M16.4 M
Fairly Up
Slightly volatile
Non Current Assets Total55.9 M82.8 M
Way Down
Slightly volatile
Property Plant Equipment95.7 M91.1 M
Sufficiently Up
Slightly volatile
Depreciation And Amortization2.8 MM
Way Down
Slightly volatile
Selling General Administrative5.1 M7.8 M
Way Down
Slightly volatile
Total Current Liabilities8.4 M8.5 M
Fairly Down
Slightly volatile
Short Term Debt3.8 M2.2 M
Way Up
Slightly volatile
Long Term Debt3.6 M1.8 M
Way Up
Slightly volatile
Long Term Investments1.5 M1.7 M
Fairly Down
Slightly volatile
Gross Profit Margin0.350.2103
Way Up
Slightly volatile

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

About Dogness International 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

2.77 Million

At this time, Dogness International's Depreciation And Amortization is fairly stable compared to the past year.

Dogness International 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 Dogness International. 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 Receivables2.5M2.9M2.8M2.9M2.9M2.8M
Total Revenue19.2M24.3M27.1M17.6M14.8M23.3M
Total Assets63.6M93.8M100.8M97.9M99.2M70.3M
Total Current Assets11.6M14.3M23.4M14.0M16.4M19.3M
Net Debt5.4M6.4M(8.5M)14.0M(1.5M)(1.4M)
Short Term Debt5.3M3.7M2.3M6.3M2.2M3.8M
Operating Income(7.2M)1.9M402.0K(9.5M)(7.5M)(7.2M)
Investments6.9M3.0M495.7K(1.5M)(1.7M)(1.8M)

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

About Dogness International Fundamental Analysis

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

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