Reliance Global Group (Reliance Global Group) Beneish M-Score : -3.98 (As of Apr. 26, 2024)

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What is Reliance Global Group 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 -3.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

RELI' s Beneish M-Score Range Over the Past 10 Years
Min: -3.98 Med: -3.16 Max: 0.36
Current: -3.98

During the past 10 years, the highest Beneish M-Score of Reliance Global Group was 0.36. The lowest was -3.98. And the median was -3.16.

Reliance Global Group Beneish M-Score Historical Data

The historical data trend for Reliance Global Group'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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Reliance Global Group Beneish M-Score Chart

Reliance Global Group Annual Data

Trend

Aug13

Aug14

Aug15

Aug16

Aug17

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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0.36

-2.80

-3.51

-3.98

Reliance Global Group 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															-3.51	-5.42	-2.85	-5.49	-3.98

Competitive Comparison of Reliance Global Group's Beneish M-Score

For the Insurance Brokers subindustry, Reliance Global Group'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.

Reliance Global Group's Beneish M-Score Distribution in the Insurance Industry

For the Insurance industry and Financial Services sector, Reliance Global Group's Beneish M-Score distribution charts can be found below:

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

Reliance Global Group 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 Reliance Global Group 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 * 1.0924

0.528 * 0.5204

0.404 * 0.8725

0.892 * 1.1675

0.115 * 0.9152

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7436

4.679 * -0.302064

0.327 * 1.1561

-3.98

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $1.31 Mil.
Revenue was 3.321 + 3.276 + 3.196 + 3.939 = $13.73 Mil.
Gross Profit was 0.018 + 0.704 + 0.631 + 1.144 = $2.50 Mil.
Total Current Assets was $4.38 Mil.
Total Assets was $23.02 Mil.
Property, Plant and Equipment(Net PPE) was $0.88 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.61 Mil.
Selling, General, & Admin. Expense(SGA) was $4.46 Mil.
Total Current Liabilities was $3.19 Mil.
Long-Term Debt & Capital Lease Obligation was $12.41 Mil.
Net Income was -9.027 + -0.139 + -1.055 + -1.789 = $-12.01 Mil.
Non Operating Income was -8.193 + 1.715 + -1.609 + 3.877 = $-4.21 Mil.
Cash Flow from Operations was -0.831 + 1.99 + -0.942 + -1.065 = $-0.85 Mil.

Total Receivables was $1.02 Mil.
Revenue was 3.034 + 2.822 + 2.847 + 3.059 = $11.76 Mil.
Gross Profit was -0.572 + 0.497 + 0.547 + 0.641 = $1.11 Mil.
Total Current Assets was $3.27 Mil.
Total Assets was $38.43 Mil.
Property, Plant and Equipment(Net PPE) was $1.18 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.56 Mil.
Selling, General, & Admin. Expense(SGA) was $5.13 Mil.
Total Current Liabilities was $7.84 Mil.
Long-Term Debt & Capital Lease Obligation was $14.69 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)
	=	(1.306 / 13.732)	/	(1.024 / 11.762)
	=	0.095106	/	0.08706
	=	1.0924

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)
	=	(1.113 / 11.762)	/	(2.497 / 13.732)
	=	0.094627	/	0.181838
	=	0.5204

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 - (4.379 + 0.88) / 23.015)	/	(1 - (3.265 + 1.182) / 38.428)
	=	0.771497	/	0.884277
	=	0.8725

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
	=	13.732	/	11.762
	=	1.1675

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))
	=	(2.563 / (2.563 + 1.182))	/	(2.609 / (2.609 + 0.88))
	=	0.684379	/	0.747779
	=	0.9152

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)
	=	(4.456 / 13.732)	/	(5.133 / 11.762)
	=	0.324498	/	0.436405
	=	0.7436

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)
	=	((12.409 + 3.19) / 23.015)	/	((14.686 + 7.842) / 38.428)
	=	0.677775	/	0.586239
	=	1.1561

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
	=	(-12.01 - -4.21	-	-0.848)	/	23.015
	=	-0.302064

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.

Reliance Global Group has a M-score of -3.98 suggests that the company is unlikely to be a manipulator.

Reliance Global Group Beneish M-Score Related Terms

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Reliance Global Group (Reliance Global Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Insurance » Reliance Global Group Inc (NAS:RELI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

300 Boulevard of the Americas, Suite 105, Lakewood, NJ, USA, 08701

Website

https://www.relianceglobalgroup.com

Reliance Global Group Inc operates as a holding company with diversified interests in the insurance market, as well as other related sectors. The company focuses on growing by pursuing an acquisition strategy, initially and primarily focused on wholesale and retail insurance agencies. Its primary strategy is to identify specific risks to reward arbitrage opportunities and develop these on a national platform, thereby increasing revenues and returns, and then identify and acquire undervalued wholesale and retail insurance agencies with operations in growing or underserved segments, expand and optimize their operations, and achieve asset value appreciation while generating interim cash flows. It generates revenue in the form of commissions.

Executives

Yaakov Beyman	officer: Executive VP, Insurance	300 BLVD. OF THE AMERICAS, SUITE 105, LAKEWOOD NJ 08701
Ezra Beyman	officer: CEO	300 BLVD OF THE AMERICAS, SUITE 105, LAKEWOOD NJ 08701
Scott Korman	director	C/O NASHONE, INC., 175 ELM ROAD, ENGLEWOOD NJ 07361
William Y. Lebovics	officer: Chief Financial Officer	300 BLVD. OF THE AMERICAS, SUITE 105, LAKEWOOD NJ 08701
Joel Markovits	officer: Chief Accounting Officer	300 BLVD. OF THE AMERICAS, SUITE 105, LAKEWOOD NJ 08701
Reliance Global Holdings Llc	officer: CEO	300 BLVD. OF THE AMERICAS., SUITE 105, LAKEWOOD NJ 08701
Miriam Spitz	other: Director of Investor Services	18 SCENIC DRIVE, SUFFERN NY 10901
Alex Blumenfrucht	officer: CFO	517 REYNOLDS AVE, TOMS RIVER NJ 08755
Jack Namer	director, 10 percent owner, officer: Chief Executive Officer	1500 NW 65TH AVENUE PLANTATION FL 33313
Amy M. Nalewaik	10 percent owner	1500 NW 65TH AVENUE PLANTATION FL 33313