Flexible Solutions International (Flexible Solutions International) Beneish M-Score : -2.75 (As of Apr. 28, 2024)

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What is Flexible Solutions International Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Flexible Solutions International's Beneish M-Score or its related term are showing as below:

FSI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12 Med: -2.65 Max: -0.93
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Flexible Solutions International was -0.93. The lowest was -3.12. And the median was -2.65.

Flexible Solutions International Beneish M-Score Historical Data

The historical data trend for Flexible Solutions International's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Flexible Solutions International Beneish M-Score Chart

Flexible Solutions International Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.23

-2.69

-2.60

-1.70

-2.75

Flexible Solutions International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.70	-2.08	-2.53	-3.43	-2.75

Competitive Comparison of Flexible Solutions International's Beneish M-Score

For the Specialty Chemicals subindustry, Flexible Solutions International's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Flexible Solutions International's Beneish M-Score Distribution in the Chemicals Industry

For the Chemicals industry and Basic Materials sector, Flexible Solutions International's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Flexible Solutions International's Beneish M-Score falls into.

Flexible Solutions International Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Flexible Solutions International for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.2458

0.528 * 1.1218

0.404 * 1.0378

0.892 * 0.8361

0.115 * 1.0241

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.2033

4.679 * -0.085829

0.327 * 0.9942

-2.75

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $9.84 Mil.
Revenue was 9.425 + 8.721 + 10.331 + 9.848 = $38.33 Mil.
Gross Profit was 2.741 + 1.472 + 3.039 + 3.085 = $10.34 Mil.
Total Current Assets was $30.23 Mil.
Total Assets was $55.47 Mil.
Property, Plant and Equipment(Net PPE) was $13.29 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.74 Mil.
Selling, General, & Admin. Expense(SGA) was $5.64 Mil.
Total Current Liabilities was $10.05 Mil.
Long-Term Debt & Capital Lease Obligation was $6.89 Mil.
Net Income was 1.8 + -0.718 + 0.81 + 0.884 = $2.78 Mil.
Non Operating Income was 0.133 + 0.104 + 0.243 + 0.067 = $0.55 Mil.
Cash Flow from Operations was -3.138 + 2.201 + 8.155 + -0.228 = $6.99 Mil.

Total Receivables was $9.45 Mil.
Revenue was 12.207 + 11.685 + 11.165 + 10.783 = $45.84 Mil.
Gross Profit was 3.013 + 3.183 + 3.862 + 3.812 = $13.87 Mil.
Total Current Assets was $31.00 Mil.
Total Assets was $51.59 Mil.
Property, Plant and Equipment(Net PPE) was $9.88 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.33 Mil.
Selling, General, & Admin. Expense(SGA) was $5.60 Mil.
Total Current Liabilities was $10.30 Mil.
Long-Term Debt & Capital Lease Obligation was $5.55 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(9.843 / 38.325)	/	(9.45 / 45.84)
	=	0.25683	/	0.206152
	=	1.2458

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(13.87 / 45.84)	/	(10.337 / 38.325)
	=	0.302574	/	0.26972
	=	1.1218

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (30.227 + 13.287) / 55.471)	/	(1 - (30.995 + 9.877) / 51.587)
	=	0.215554	/	0.207707
	=	1.0378

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	38.325	/	45.84
	=	0.8361

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(1.328 / (1.328 + 9.877))	/	(1.739 / (1.739 + 13.287))
	=	0.118519	/	0.115733
	=	1.0241

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(5.635 / 38.325)	/	(5.601 / 45.84)
	=	0.147032	/	0.122186
	=	1.2033

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((6.889 + 10.054) / 55.471)	/	((5.546 + 10.302) / 51.587)
	=	0.305439	/	0.307209
	=	0.9942

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(2.776 - 0.547	-	6.99)	/	55.471
	=	-0.085829

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Flexible Solutions International has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.

Flexible Solutions International Beneish M-Score Related Terms

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Flexible Solutions International (Flexible Solutions International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Chemicals » Flexible Solutions International Inc (AMEX:FSI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

6001 54 Avenue, Taber, AB, CAN, T1G 1X4

Website

https://www.flexiblesolutions.com

Flexible Solutions International Inc develops, manufactures, and markets specialty chemicals that slow the evaporation of water. Its business is organized into two segments Energy and Water Conservation Products, and Biodegradable Polymers. It primarily offers a liquid swimming pool blanket under the WATERSAVR brand, which saves energy and water by inhibiting evaporation from the pool surface, a chemical product called HEATSAVR, for use in swimming pools and spas to slow the water evaporation. The firm also manufactures and markets water-soluble chemicals utilizing thermal polyaspartate biopolymers. It generates most of its revenues from the export of its products to international markets.

Executives

O Brien Daniel B	director, 10 percent owner, officer: President/CEO	2614 QUEENSWOOD DR, VICTORIA B C, V8N 1X6 A1 V6C 3L6
Thomas Murray Fyles	director	3478 CARDIFF PLACE, VICTORIA A1 V8P 4Z1
Robert T Helina	director	P.O. BOX 670, (345) 323-7888, GEORGETOWN E9 KY1-1107
John H Bientjes	director	1-230 W 13TH ST, N VANCOUVER B C, V8N 1X5
Eric Glen Hodges	director	204 GOVERNMENT STREET, VICTORIA A1 V8V 2K9
Fred J Kupel	officer: Chief Financial Officer	3735 SE OGDEN STREET, PORTLAND OR 97202
O Brien Dr Robert N	director, 10 percent owner	2614 QUEENSWOOD DR, VICTORIA B C, V8N 1X6
Dale Friend	director