GURUFOCUS.COM » STOCK LIST » USA » NAS » SHF Holdings Inc (NAS:SHFS) » Definitions » Beneish M-Score
Switch to:

SHF Holdings (NAS:SHFS) Beneish M-Score

: 0.00 (As of Today)
View and export this data going back to 2022. Start your Free Trial

Note: Financial institutions were excluded from the sample in Beneish paper when calculating Beneish M-Score. Thus, the prediction might not fit banks and insurance companies.

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 SHF Holdings's Beneish M-Score or its related term are showing as below:

During the past 3 years, the highest Beneish M-Score of SHF Holdings was 0.00. The lowest was 0.00. And the median was 0.00.


SHF Holdings 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 SHF Holdings 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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* 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 (Sep23) TTM:Last Year (Sep22) TTM:
Total Receivables was $6.02 Mil.
Revenue was 3.115 + 4.229 + 3.779 + -38.838 = $-27.72 Mil.
Gross Profit was 3.115 + 4.229 + 3.779 + -38.838 = $-27.72 Mil.
Total Current Assets was $14.99 Mil.
Total Assets was $72.38 Mil.
Property, Plant and Equipment(Net PPE) was $1.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.27 Mil.
Selling, General, & Admin. Expense(SGA) was $19.26 Mil.
Total Current Liabilities was $19.90 Mil.
Long-Term Debt & Capital Lease Obligation was $12.67 Mil.
Net Income was -0.748 + -17.605 + -1.413 + -37.022 = $-56.79 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.00 Mil.
Cash Flow from Operations was 0.72 + -0.719 + -0.226 + -0.27 = $-0.50 Mil.
Total Receivables was $44.22 Mil.
Revenue was 2.61 + 1.853 + 1.671 + 1.708 = $7.84 Mil.
Gross Profit was 2.61 + 1.853 + 1.671 + 1.708 = $7.84 Mil.
Total Current Assets was $51.50 Mil.
Total Assets was $98.88 Mil.
Property, Plant and Equipment(Net PPE) was $0.02 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.00 Mil.
Selling, General, & Admin. Expense(SGA) was $3.49 Mil.
Total Current Liabilities was $64.80 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
=(6.02 / -27.715) / (44.222 / 7.842)
= / 5.639123
=

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)
=(7.842 / 7.842) / (-27.715 / -27.715)
=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 - (14.987 + 1.025) / 72.378) / (1 - (51.5 + 0.017) / 98.877)
=0.778773 / 0.478979
=

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
=-27.715 / 7.842
=

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))
=(0.004 / (0.004 + 0.017)) / (1.272 / (1.272 + 1.025))
=0.190476 / 0.553766
=

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)
=(19.255 / -27.715) / (3.494 / 7.842)
= / 0.44555
=

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)
=((12.667 + 19.897) / 72.378) / ((0 + 64.798) / 98.877)
=0.449916 / 0.655339
=

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
=(-56.788 - 0 - -0.495) / 72.378
=-0.777764

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.


SHF Holdings Beneish M-Score Related Terms

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


SHF Holdings (NAS:SHFS) Business Description

Traded in Other Exchanges
N/A
Address
1526 Cole Boulevard, Suite 250, Golden, CO, USA, 80410
SHF Holdings Inc is a financial services provider to cannabis-related businesses. It offers reliable access to banking solutions for cannabis, hemp, CBD, and ancillary operators, making communities safer, driving growth in local economies, and fostering long-term partnerships. The group, through its financial institution clients, implements accountability, transparency, monitoring, reporting and risk mitigation measures while meeting Bank Secrecy Act obligations in line with FinCEN guidance on cannabis-related businesses. Its services include Program Management Support, Customer Lead Generation, Ongoing Program Auditing, and Compliance Monitoring among others.
Executives
Doug Fagan director 1526 COLE BLVD, SUITE 250, GOLDEN CO 80401
Sundie Seefried officer: Chief Executive Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Dan Roda officer: EVP / Chief Operating Officer 1526 COLE BLVD, SUITE 250, GOLDEN CO 80401
Jonathon Niehaus director 5269 W. 62ND AVENUE, ARVADA CO 80003
Jonathan Summers director 909 BANNOCK STREET, DENVER CO 80204
Donald Emmi officer: Chief Legal Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Richard Carleton director 5269 W. 62ND AVENUE, ARVADA CO 80003
John Darwin director 909 BANNOCK STREET, DENVER CO 80204
Jennifer Meyers director 5269 W. 62ND AVENUE, ARVADA CO 80003
Jim Dennedy officer: Chief Financial Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Partner Colorado Credit Union 10 percent owner 6221 SHERIDAN BLVD, ARVADA CO 80003
Karl Racine director 5269 W. 62ND AVENUE, ARVADA CO 80003
Tyler Beuerlein officer: Chief Business Develop Officer 5269 W. 62ND AVENUE, ARVADA CO 80003
Midtown East Management Nl Llc 10 percent owner ONE ROCKEFELLER PLAZA, 32ND FLOOR, NEW YORK NY 10020
Atalaya Special Purpose Investment Fund Ii Lp 10 percent owner C/O ATALAYA CAPITAL MANAGEMENT LP, ONE ROCKEFELLER PLAZA, 32ND FLOOR, NEW YORK NY 10020