SOL Global Investments (STU:9SB) Beneish M-Score : 0.00 (As of Dec. 15, 2024)

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What is SOL Global Investments Beneish M-Score?

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 SOL Global Investments's Beneish M-Score or its related term are showing as below:

During the past 12 years, the highest Beneish M-Score of SOL Global Investments was 24.82. The lowest was -0.41. And the median was 8.85.

SOL Global Investments 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 SOL Global Investments 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 *

0.528 *

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 (Aug24) TTM:

Last Year (Aug23) TTM:

Total Receivables was €2.62 Mil.
Revenue was -2.368 + -15.454 + -0.435 + -15.982 = €-34.24 Mil.
Gross Profit was -2.368 + -15.454 + -0.435 + -15.982 = €-34.24 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €54.73 Mil.
Property, Plant and Equipment(Net PPE) was €0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.29 Mil.
Selling, General, & Admin. Expense(SGA) was €0.17 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €19.28 Mil.
Net Income was -1.987 + -2.091 + -1 + -10.11 = €-15.19 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0.00 Mil.
Cash Flow from Operations was 2.27 + 2.479 + -0.755 + -3.019 = €0.98 Mil.

Total Receivables was €2.68 Mil.
Revenue was -4.571 + 1.494 + -8.844 + -34.357 = €-46.28 Mil.
Gross Profit was -4.571 + 1.494 + -8.844 + -34.357 = €-46.28 Mil.
Total Current Assets was €0.00 Mil.
Total Assets was €90.41 Mil.
Property, Plant and Equipment(Net PPE) was €1.42 Mil.
Depreciation, Depletion and Amortization(DDA) was €0.44 Mil.
Selling, General, & Admin. Expense(SGA) was €4.47 Mil.
Total Current Liabilities was €0.00 Mil.
Long-Term Debt & Capital Lease Obligation was €18.90 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)
	=	(2.621 / -34.239)	/	(2.675 / -46.278)
	=		/
	=

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)
	=	(-46.278 / -46.278)	/	(-34.239 / -34.239)
	=		/
	=

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 - (0 + 0) / 54.732)	/	(1 - (0 + 1.419) / 90.405)
	=	1	/	0.984304
	=

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
	=	-34.239	/	-46.278
	=

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))
	=	(0.435 / (0.435 + 1.419))	/	(0.289 / (0.289 + 0))
	=	0.234628	/	1
	=

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)
	=	(0.173 / -34.239)	/	(4.468 / -46.278)
	=		/
	=

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)
	=	((19.284 + 0) / 54.732)	/	((18.899 + 0) / 90.405)
	=	0.352335	/	0.209048
	=

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
	=	(-15.188 - 0	-	0.975)	/	54.732
	=	-0.295312

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.

SOL Global Investments Beneish M-Score Related Terms

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SOL Global Investments Business Description

Industry

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Traded in Other Exchanges

SOLCF:USA 9SB:Germany SOL:Canada

Address

100 King Street West, Suite 5600, Toronto, ON, CAN, M5X 1C9

Website

https://www.solglobal.com

SOL Global Investments Corp is a cannabis company with a focus on legal U.S. states. Its strategic investments and partnerships across cultivation, distribution and retail complement the company's R&D program with the University of Miami. It is also involved in Retail, Agriculture, Quick Service Restaurants & Hospitality, Media Technology & Gaming, Energy and New Age Wellness.