SOMNF (SomnoMed) Beneish M-Score : -2.84 (As of Mar. 23, 2025)

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What is SomnoMed 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 -2.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SOMNF' s Beneish M-Score Range Over the Past 10 Years
Min: -4.03 Med: -2.78 Max: -2.06
Current: -2.84

During the past 13 years, the highest Beneish M-Score of SomnoMed was -2.06. The lowest was -4.03. And the median was -2.78.

SomnoMed Beneish M-Score Historical Data

The historical data trend for SomnoMed'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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SomnoMed Beneish M-Score Chart

SomnoMed Annual Data

Trend

Jun15

Jun16

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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-3.49

-2.75

-2.86

-2.81

-2.84

SomnoMed Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.81	-	-2.84	-

Competitive Comparison of SomnoMed's Beneish M-Score

For the Medical Devices subindustry, SomnoMed'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.

SomnoMed's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, SomnoMed's Beneish M-Score distribution charts can be found below:

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

SomnoMed 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 SomnoMed 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 * 0.83

0.528 * 1.0323

0.404 * 0.9457

0.892 * 1.0844

0.115 * 0.84

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0433

4.679 * -0.087463

0.327 * 0.5481

-2.85

This Year (Jun24) TTM:

Last Year (Jun23) TTM:

Total Receivables was $5.26 Mil.
Revenue was $60.86 Mil.
Gross Profit was $36.61 Mil.
Total Current Assets was $23.33 Mil.
Total Assets was $46.35 Mil.
Property, Plant and Equipment(Net PPE) was $7.40 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.84 Mil.
Selling, General, & Admin. Expense(SGA) was $29.34 Mil.
Total Current Liabilities was $13.24 Mil.
Long-Term Debt & Capital Lease Obligation was $2.73 Mil.
Net Income was $-8.13 Mil.
Gross Profit was $0.13 Mil.
Cash Flow from Operations was $-4.21 Mil.

Total Receivables was $5.85 Mil.
Revenue was $56.12 Mil.
Gross Profit was $34.85 Mil.
Total Current Assets was $18.45 Mil.
Total Assets was $41.94 Mil.
Property, Plant and Equipment(Net PPE) was $8.54 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.43 Mil.
Selling, General, & Admin. Expense(SGA) was $25.93 Mil.
Total Current Liabilities was $12.32 Mil.
Long-Term Debt & Capital Lease Obligation was $14.05 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)
	=	(5.264 / 60.857)	/	(5.848 / 56.118)
	=	0.086498	/	0.104209
	=	0.83

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)
	=	(34.847 / 56.118)	/	(36.608 / 60.857)
	=	0.620959	/	0.601541
	=	1.0323

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 - (23.333 + 7.402) / 46.351)	/	(1 - (18.454 + 8.544) / 41.94)
	=	0.336908	/	0.356271
	=	0.9457

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
	=	60.857	/	56.118
	=	1.0844

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))
	=	(3.434 / (3.434 + 8.544))	/	(3.835 / (3.835 + 7.402))
	=	0.286692	/	0.341283
	=	0.84

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)
	=	(29.342 / 60.857)	/	(25.934 / 56.118)
	=	0.482147	/	0.462133
	=	1.0433

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)
	=	((2.734 + 13.243) / 46.351)	/	((14.054 + 12.322) / 41.94)
	=	0.344696	/	0.628898
	=	0.5481

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
	=	(-8.129 - 0.13	-	-4.205)	/	46.351
	=	-0.087463

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.

SomnoMed has a M-score of -2.85 suggests that the company is unlikely to be a manipulator.

SomnoMed Beneish M-Score Related Terms

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SomnoMed Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » SomnoMed Ltd (OTCPK:SOMNF) » Definitions » Beneish M-Score

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RJV:Germany SOM:Australia

Address

20 Clarke Street, Level 3, Crows Nest, Sydney, NSW, AUS, 2065

Website

https://www.somnomed.com/au

SomnoMed Ltd produces and sells oral treatment of sleep-related disorder devices. It manufactures and designs premium oral appliances for the treatment of sleep-disordered breathing relieving conditions. Its products include SomnoDent, Som Tabs, Som Morning Repositioner and others. Its geographical segments include North America, Europe, and Asia-Pacific. Business operations consist of the production and sale of products treating sleep-disordered breathing, which is the only reportable segment. Substantial revenue is realized from the European region.