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4Front Ventures (4Front Ventures) Beneish M-Score

: -4.15 (As of Today)
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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 -4.15 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for 4Front Ventures's Beneish M-Score or its related term are showing as below:

FFNTF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.15   Med: -2.42   Max: 0.57
Current: -4.15

During the past 13 years, the highest Beneish M-Score of 4Front Ventures was 0.57. The lowest was -4.15. And the median was -2.42.


4Front Ventures Beneish M-Score Historical Data

The historical data trend for 4Front Ventures'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.

4Front Ventures Annual Data
Trend Apr14 Apr15 Apr16 Apr17 Apr18 Apr19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.57 -2.13 -2.81 -2.42 -4.15

4Front Ventures Quarterly Data
Jan19 Apr19 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 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 -2.42 -2.59 -3.00 -4.54 -4.15

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, 4Front Ventures'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.


4Front Ventures Beneish M-Score Distribution

For the Drug Manufacturers industry and Healthcare sector, 4Front Ventures's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where 4Front Ventures's Beneish M-Score falls into.



4Front Ventures 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 4Front Ventures 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 * 0.945+0.528 * 1.2485+0.404 * 0.7247+0.892 * 0.9514+0.115 * 0.915
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0535+4.679 * -0.305898-0.327 * 1.3694
=-4.13

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $8.4 Mil.
Revenue was 20.979 + 23.002 + 30.696 + 30.376 = $105.1 Mil.
Gross Profit was 8.32 + 9.28 + 9.596 + 10.988 = $38.2 Mil.
Total Current Assets was $33.9 Mil.
Total Assets was $264.0 Mil.
Property, Plant and Equipment(Net PPE) was $155.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.6 Mil.
Selling, General, & Admin. Expense(SGA) was $58.1 Mil.
Total Current Liabilities was $104.0 Mil.
Long-Term Debt & Capital Lease Obligation was $182.5 Mil.
Net Income was -6.68 + -62.101 + -11.469 + -11.397 = $-91.6 Mil.
Non Operating Income was 10.823 + -19.863 + -0.68 + 0.652 = $-9.1 Mil.
Cash Flow from Operations was 2.235 + 0.125 + 2.688 + -6.884 = $-1.8 Mil.
Total Receivables was $9.4 Mil.
Revenue was 27.836 + 28.1 + 28.439 + 26.048 = $110.4 Mil.
Gross Profit was 7.277 + 17.061 + 12.316 + 13.454 = $50.1 Mil.
Total Current Assets was $53.3 Mil.
Total Assets was $344.7 Mil.
Property, Plant and Equipment(Net PPE) was $156.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $5.1 Mil.
Selling, General, & Admin. Expense(SGA) was $58.0 Mil.
Total Current Liabilities was $77.5 Mil.
Long-Term Debt & Capital Lease Obligation was $195.8 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)
=(8.407 / 105.053) / (9.351 / 110.423)
=0.080026 / 0.084683
=0.945

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)
=(50.108 / 110.423) / (38.184 / 105.053)
=0.453782 / 0.363474
=1.2485

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 - (33.912 + 155.06) / 263.954) / (1 - (53.267 + 156.343) / 344.732)
=0.284072 / 0.391962
=0.7247

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
=105.053 / 110.423
=0.9514

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))
=(5.114 / (5.114 + 156.343)) / (5.56 / (5.56 + 155.06))
=0.031674 / 0.034616
=0.915

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)
=(58.134 / 105.053) / (58.005 / 110.423)
=0.553378 / 0.525298
=1.0535

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)
=((182.489 + 104) / 263.954) / ((195.778 + 77.45) / 344.732)
=1.085375 / 0.792581
=1.3694

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
=(-91.647 - -9.068 - -1.836) / 263.954
=-0.305898

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.

4Front Ventures has a M-score of -4.13 suggests that the company is unlikely to be a manipulator.


4Front Ventures Beneish M-Score Related Terms

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4Front Ventures (4Front Ventures) Business Description

Traded in Other Exchanges
Address
5060 North 40th Street, Suite 120, Phoenix, AZ, USA, 85018
4Front Ventures Corp is a Canadian-based company. It is engaged in the cultivation, processing, extracting, manufacturing, and distribution of cannabis products. It operates in two segments: THC Cannabis and CBD Wellness. The THC Cannabis segment engages in the production and cultivation of THC cannabis, manufacturing and distribution of cannabis products to own dispensaries and third-party retail customers. The CBD Wellness segment encompasses the production and sale of CBD products to third-party customers.
Executives
Leonid Gontmakher director, officer: Chief Executive Officer 5060 N. 40TH STREET, SUITE 120, PHOENIX AZ 85018
Nicole Frederick officer: See Remarks C/O 4FRONT VENTURES CORP., 7010 E. CHAUNCEY LANE STE. 235, PHOENIX AZ 85054
Kristopher Krane director 5060 N. 40TH STREET, SUITE 120, PHOENIX AZ 85018
David Ryan Daily director 5060 N 40TH STREET STE 120, PHOENIX AZ 85018
Roman Tkachenko director 5060 N 40TH STREET STE 120, PHOENIX AZ 85018
Karl Chowscano other: Consultant 5060 N. 40TH STREET, SUITE 120, PHOENIX AZ 85018
Chetan Gulati director 28 REICHERT CIRCLE, WESTPORT CT 06880
Keith Edward Adams officer: Chief Financial Officer 108 S. WETHERLY DRIVE, UNIT 4, LOS ANGELES CA 90048
Robert E Hunt director C/O GROWLIFE, INC., 20301 VENTURA BLVD., SUITE 126, WOODLAND HILLS CA 91364
Amit Ramanlal Patel director 3305 PINE AVENUE, MANHATTAN BEACH CA 90266
Kathi P Lentzsch director 5060 N 40TH STREET STE 120, PHOENIX AZ 85018
Andrew Thut officer: Chief Investment Officer 5060 N. 40TH STREET, SUITE 120, PHOENIX AZ 85018
Joseph R Feltham officer: Chief Operating Officer 5060 N. 40TH STREET, STE 120, PHOENIX AZ 85018
Eric J. Rey director ARCADIA BIOSCIENCES, INC., 202 COUSTEAU PLACE, SUITE 105, DAVIS CA 95618
Nicolle Dorsey officer: Chief Financial Officer C/O REAL GOODS SOLAR, INC., 110 16TH STREET, 3RD FLOOR, DENVER CO 80202