Sequential Brands Group (Sequential Brands Group) Beneish M-Score : 0.00 (As of Apr. 26, 2024)

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What is Sequential Brands 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.

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

During the past 13 years, the highest Beneish M-Score of Sequential Brands Group was 0.00. The lowest was 0.00. And the median was 0.00.

Sequential Brands Group Beneish M-Score Historical Data

The historical data trend for Sequential Brands 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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Sequential Brands Group Beneish M-Score Chart

Sequential Brands Group Annual Data

Trend

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Beneish M-Score

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-2.21

-2.36

Sequential Brands Group Quarterly Data
	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20
Beneish M-Score	Get a 7-Day Free Trial															-	-	-	-	-

Competitive Comparison of Sequential Brands Group's Beneish M-Score

For the Apparel Manufacturing subindustry, Sequential Brands 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.

Sequential Brands Group's Beneish M-Score Distribution in the Manufacturing - Apparel & Accessories Industry

For the Manufacturing - Apparel & Accessories industry and Consumer Cyclical sector, Sequential Brands Group's Beneish M-Score distribution charts can be found below:

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

Sequential Brands 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 Sequential Brands 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 * 1.2338

0.528 * 1

0.404 * 1.0393

0.892 * 0.8842

0.115 * 0.1971

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1

4.679 * -0.012074

0.327 * 1.1608

-2.55

This Year (Dec20) TTM:

Last Year (Dec19) TTM:

Total Receivables was $43.04 Mil.
Revenue was $89.81 Mil.
Gross Profit was $89.81 Mil.
Total Current Assets was $66.33 Mil.
Total Assets was $565.91 Mil.
Property, Plant and Equipment(Net PPE) was $4.54 Mil.
Depreciation, Depletion and Amortization(DDA) was $25.43 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $476.67 Mil.
Long-Term Debt & Capital Lease Obligation was $2.78 Mil.
Net Income was $-89.42 Mil.
Gross Profit was $-86.87 Mil.
Cash Flow from Operations was $4.29 Mil.

Total Receivables was $39.45 Mil.
Revenue was $101.58 Mil.
Gross Profit was $101.58 Mil.
Total Current Assets was $58.83 Mil.
Total Assets was $723.24 Mil.
Property, Plant and Equipment(Net PPE) was $55.67 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.18 Mil.
Selling, General, & Admin. Expense(SGA) was $0.00 Mil.
Total Current Liabilities was $40.44 Mil.
Long-Term Debt & Capital Lease Obligation was $487.42 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)
	=	(43.039 / 89.811)	/	(39.452 / 101.576)
	=	0.479217	/	0.388399
	=	1.2338

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)
	=	(101.576 / 101.576)	/	(89.811 / 89.811)
	=	1	/	1
	=	1

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 - (66.331 + 4.537) / 565.909)	/	(1 - (58.826 + 55.669) / 723.244)
	=	0.874771	/	0.841692
	=	1.0393

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
	=	89.811	/	101.576
	=	0.8842

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))
	=	(11.184 / (11.184 + 55.669))	/	(25.429 / (25.429 + 4.537))
	=	0.167292	/	0.848595
	=	0.1971

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)
	=	(0 / 89.811)	/	(0 / 101.576)
	=	0	/	0
	=	1

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)
	=	((2.776 + 476.666) / 565.909)	/	((487.418 + 40.442) / 723.244)
	=	0.847207	/	0.729851
	=	1.1608

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
	=	(-89.42 - -86.872	-	4.285)	/	565.909
	=	-0.012074

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.

Sequential Brands Group has a M-score of -2.55 suggests that the company is unlikely to be a manipulator.

Sequential Brands Group Beneish M-Score Related Terms

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Sequential Brands Group (Sequential Brands Group) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Manufacturing - Apparel & Accessories » Sequential Brands Group Inc (OTCPK:SQBGQ) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1407 Broadway, 38th Floor, New York, NY, USA, 10018

Website

https://www.sequentialbrandsgroup.com

Sequential Brands Group Inc own, manage and license a portfolio of consumer brands in the home, active and fashion categories. Its brands include Martha Stewart, Jessica Simpson, Emeril Lagasse, AND1, Revo, and Ellen Tracy. The company licenses brands to both wholesale and direct-to-retail licensees. It generates revenues from the United States through license agreements.

Executives

Martha Stewart	director, 10 percent owner, officer: Founder & Chief Creative Offcr	C/O MARTHA STEWART LIVING OMNIMEDIA INC, 20 WEST 43RD STREET, NEW YORK NY 10036
Silvia Mazzucchelli	director	2391 ACHILLES DRIVE LOS ANGELES CA 90046
Phil Frohlich	10 percent owner	1924 SOUTH IRICA SUITE 1120, TULSA OK 741046529
Prescott Group Capital Management, L.l.c.	10 percent owner	1924 SOUTH UTICA, SUITE 1120, TULSA OK 74104-6429
Chad Wagenheim	officer: President	215 SUNSET AVENUE WESTFIELD NJ 07090
Daniel Hanbridge	officer: SVP & Interim CFO	70 HOLLYWOOD AVENUE METUCHEN NJ 08840
David Conn	director, officer: Chief Executive Officer	215 WEST 40TH STREET, 6TH FLOOR NEW YORK NY 10018
Leonard Jr Stewart	director	C/O STEW LEONARDS 100 WESTPORT AVE. NORWALK CT 06851
Aaron P Hollander	director	C/O FIRST AVIATION SERVICES INC 15 RIVERSIDE AVE WESTPORT CT 06880
Gary A Johnson	director	MEMBERWORKS INC 680 WASHINGTON BLVD STAMFORD CT 06901
Karen Murray	director, officer: Chief Executive Officer	601 W 26TH STREET 9TH FL NEW YORK NY 10001
Andrew S. Cooper	officer: President	C/O PEGASUS CAPITAL ADVISORS, L.P. 99 RIVER ROAD COS COB CT 06807
Peter J Lops	officer: Chief Financial Officer	110 AVONDALE RD. RIDGEWOOD NJ 07450
William Sweedler	director, 10 percent owner	C/O ICONIX BRAND GROUP, INC. 1450 BROADWAY, 4TH FLOOR NEW YORK NY 10018
Matthew Eby	10 percent owner	TENGRAM CAPITAL PARTNERS, 15 RIVERSIDE AVENUE, WESTPORT CT 06880