Sosandar (LSE:SOS) Beneish M-Score : -1.89 (As of Dec. 11, 2024)

View and export this data going back to 2017. Start your Free Trial

What is Sosandar 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 -1.89 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LSE:SOS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.37 Med: -1.42 Max: 0.08
Current: -1.89

During the past 8 years, the highest Beneish M-Score of Sosandar was 0.08. The lowest was -3.37. And the median was -1.42.

Sosandar Beneish M-Score Historical Data

The historical data trend for Sosandar'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.

* Premium members only.

Sosandar Beneish M-Score Chart

Sosandar Annual Data

Trend

Oct15

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

Get a 7-Day Free Trial

-1.30

-3.37

-0.57

-1.53

-1.89

Sosandar Semi-Annual Data
	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Beneish M-Score	Get a 7-Day Free Trial									-	-1.53	-	-1.89	-

Competitive Comparison of Sosandar's Beneish M-Score

For the Internet Retail subindustry, Sosandar'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.

Sosandar's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Sosandar's Beneish M-Score distribution charts can be found below:

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

Sosandar 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 Sosandar 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 * 1.0069

0.528 * 0.9751

0.404 * 1.6374

0.892 * 1.0901

0.115 * 0.7431

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.115

4.679 * 0.047227

0.327 * 0.7256

-1.89

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was £2.26 Mil.
Revenue was £46.28 Mil.
Gross Profit was £26.65 Mil.
Total Current Assets was £22.00 Mil.
Total Assets was £23.91 Mil.
Property, Plant and Equipment(Net PPE) was £0.91 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.32 Mil.
Selling, General, & Admin. Expense(SGA) was £26.98 Mil.
Total Current Liabilities was £5.27 Mil.
Long-Term Debt & Capital Lease Obligation was £0.43 Mil.
Net Income was £-0.42 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-1.55 Mil.

Total Receivables was £2.06 Mil.
Revenue was £42.45 Mil.
Gross Profit was £23.84 Mil.
Total Current Assets was £25.67 Mil.
Total Assets was £27.35 Mil.
Property, Plant and Equipment(Net PPE) was £0.99 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.24 Mil.
Selling, General, & Admin. Expense(SGA) was £22.20 Mil.
Total Current Liabilities was £8.50 Mil.
Long-Term Debt & Capital Lease Obligation was £0.48 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)
	=	(2.26 / 46.277)	/	(2.059 / 42.451)
	=	0.048836	/	0.048503
	=	1.0069

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)
	=	(23.837 / 42.451)	/	(26.65 / 46.277)
	=	0.561518	/	0.57588
	=	0.9751

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 - (22.001 + 0.909) / 23.906)	/	(1 - (25.667 + 0.991) / 27.354)
	=	0.041663	/	0.025444
	=	1.6374

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
	=	46.277	/	42.451
	=	1.0901

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))
	=	(0.235 / (0.235 + 0.991))	/	(0.316 / (0.316 + 0.909))
	=	0.19168	/	0.257959
	=	0.7431

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)
	=	(26.984 / 46.277)	/	(22.2 / 42.451)
	=	0.583097	/	0.522956
	=	1.115

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)
	=	((0.428 + 5.27) / 23.906)	/	((0.482 + 8.503) / 27.354)
	=	0.23835	/	0.328471
	=	0.7256

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
	=	(-0.423 - 0	-	-1.552)	/	23.906
	=	0.047227

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.

Sosandar has a M-score of -1.89 suggests that the company is unlikely to be a manipulator.

Sosandar Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Sosandar's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Sosandar Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Sosandar PLC (LSE:SOS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

40 Water Lane, Wilmslow, Cheshire, GBR, SK9 5AP

Website

https://www.sosandar-ir.com

Sosandar PLC is involved in the online sale of women's wear products through its platform. It is engaged in the sale of womenswear fashion, footwear, and accessories through its website, and selected third-party partners. The product portfolio of the company includes clothing, footwear, gifts, accessories, and gift cards, among others. Geographically, the company derives its key revenue from the United Kingdom.