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The Lovesac Co (The Lovesac Co) Beneish M-Score : -2.62 (As of May. 12, 2024)


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What is The Lovesac Co 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 -2.62 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LOVE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43   Med: -1.97   Max: -0.86
Current: -2.62

During the past 9 years, the highest Beneish M-Score of The Lovesac Co was -0.86. The lowest was -3.43. And the median was -1.97.


The Lovesac Co Beneish M-Score Historical Data

The historical data trend for The Lovesac Co'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.

The Lovesac Co Beneish M-Score Chart

The Lovesac Co Annual Data
Trend Jan16 Jan17 Jan18 Jan19 Jan20 Jan21 Jan22 Jan23 Jan24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -1.97 -3.43 -0.86 -1.24 -2.62

The Lovesac Co Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.24 -0.07 -2.08 -2.22 -2.62

Competitive Comparison of The Lovesac Co's Beneish M-Score

For the Furnishings, Fixtures & Appliances subindustry, The Lovesac Co'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.


The Lovesac Co's Beneish M-Score Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, The Lovesac Co's Beneish M-Score distribution charts can be found below:

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



The Lovesac Co 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 The Lovesac Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.3753+0.528 * 0.9215+0.404 * 1.0677+0.892 * 1.0754+0.115 * 1.0335
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1264+4.679 * -0.109046-0.327 * 1.0389
=-2.62

* 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.

This Year (Jan24) TTM:Last Year (Jan23) TTM:
Total Receivables was $13.5 Mil.
Revenue was 250.507 + 154.036 + 154.529 + 141.193 = $700.3 Mil.
Gross Profit was 149.636 + 88.442 + 92.39 + 70.575 = $401.0 Mil.
Total Current Assets was $214.4 Mil.
Total Assets was $482.2 Mil.
Property, Plant and Equipment(Net PPE) was $226.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.6 Mil.
Selling, General, & Admin. Expense(SGA) was $358.4 Mil.
Total Current Liabilities was $106.4 Mil.
Long-Term Debt & Capital Lease Obligation was $157.9 Mil.
Net Income was 30.952 + -2.341 + -0.635 + -4.115 = $23.9 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 56.318 + -7.221 + 21.053 + 6.291 = $76.4 Mil.
Total Receivables was $9.1 Mil.
Revenue was 238.481 + 134.784 + 148.534 + 129.38 = $651.2 Mil.
Gross Profit was 133.674 + 64.904 + 79.099 + 65.974 = $343.7 Mil.
Total Current Assets was $187.7 Mil.
Total Assets was $408.6 Mil.
Property, Plant and Equipment(Net PPE) was $188.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $10.8 Mil.
Selling, General, & Admin. Expense(SGA) was $295.8 Mil.
Total Current Liabilities was $82.0 Mil.
Long-Term Debt & Capital Lease Obligation was $133.5 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)
=(13.463 / 700.265) / (9.103 / 651.179)
=0.019226 / 0.013979
=1.3753

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)
=(343.651 / 651.179) / (401.043 / 700.265)
=0.527737 / 0.572702
=0.9215

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 - (214.448 + 226.663) / 482.18) / (1 - (187.715 + 188.315) / 408.626)
=0.085174 / 0.07977
=1.0677

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
=700.265 / 651.179
=1.0754

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))
=(10.842 / (10.842 + 188.315)) / (12.603 / (12.603 + 226.663))
=0.054439 / 0.052674
=1.0335

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)
=(358.364 / 700.265) / (295.843 / 651.179)
=0.511755 / 0.454319
=1.1264

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)
=((157.876 + 106.356) / 482.18) / ((133.491 + 82.041) / 408.626)
=0.547995 / 0.527455
=1.0389

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
=(23.861 - 0 - 76.441) / 482.18
=-0.109046

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.

The Lovesac Co has a M-score of -2.62 suggests that the company is unlikely to be a manipulator.


The Lovesac Co Beneish M-Score Related Terms

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The Lovesac Co (The Lovesac Co) Business Description

Traded in Other Exchanges
N/A
Address
Two Landmark Square, Suite 300, Stamford, CT, USA, 06901
The Lovesac Co designs, manufactures and sells alternative furniture which is comprised of modular couches called sactionals and premium foam beanbag chairs called sacs. It also offers other accessories such as sactional-specific drink holders, Footsac blankets, decorative pillows, fitted seat tables and ottoman. Its products are sold across the United States through its website or company-owned retail stores which are used in homes and offices. Majority of the firm's revenue gets derives from the sale of Sactionals.
Executives
Andrew R Heyer director, 10 percent owner 501 MADISON AVENUE, FLOOR 5, NEW YORK NY 10019
Shawn David Nelson director, officer: Chief Executive Officer 2 LANDMARK SQUARE, SUITE 300, STAMFORD CT 06820
Satori Capital, Llc 10 percent owner 2501 N. HARWOOD ST., 20TH FLOOR, DALLAS TX 75201
Keith R. Siegner officer: EVP and CFO TWO LANDMARK SQUARE, SUITE 300, STAMFORD CT 06901
Vineet Mehra director 330 HUDSON STREET, 13TH FLOOR, NEW YORK NY 10013
Sharon M Leite director 100 PIER 1 PLACE, FT. WORTH TX 76102
Shirley Romig director TWO LANDMARK SQUARE, SUITE 300, STAMFORD CT 06901
Albert Jack Krause director, officer: President and COO 2 LANDMARK SQUARE, SUITE 300, STAMFORD CT 06820
Walter Field Mclallen director 1225 17TH AVE SOUTH, NASHVILLE TN 37212
Mary Fox director TWO LANDMARK SQUARE, SUITE 300, STAMFORD CT 06901
Mistral Equity Partners, Lp 10 percent owner 650 FIFTH AVENUE, 31ST FLOOR, New York NY 10019
Mistral Sac Holdings, Llc 10 percent owner 650 FIFTH AVENUE, FLOOR 10, NEW YORK NY 10019
Jared Rubin director 4300 E. FIFTH AVE., COLUMBUS OH 43219
Sac Acquisition Llc 10 percent owner 700 CANAL STREET, 4TH FLOOR, STAMFORD CT 06902
Donna Dellomo officer: Executive VP and CFO 35 SAWGRASS DRIVE, SUITE 2, BELLPORT NY 11713