1933 Industries (1933 Industries) Beneish M-Score : -5.17 (As of Apr. 29, 2024)

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What is 1933 Industries 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 -5.17 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for 1933 Industries's Beneish M-Score or its related term are showing as below:

TGIFF' s Beneish M-Score Range Over the Past 10 Years
Min: -9.11 Med: -2.58 Max: 7.53
Current: -5.17

During the past 13 years, the highest Beneish M-Score of 1933 Industries was 7.53. The lowest was -9.11. And the median was -2.58.

1933 Industries Beneish M-Score Historical Data

The historical data trend for 1933 Industries'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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1933 Industries Beneish M-Score Chart

1933 Industries Annual Data

Trend

Dec14

Jul15

Jul16

Jul17

Jul18

Jul19

Jul20

Jul21

Jul22

Jul23

Beneish M-Score

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-2.94

-3.49

-2.75

-2.36

-9.11

1933 Industries Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Beneish M-Score	Get a 7-Day Free Trial															0.83	-5.52	-9.11	-3.21	-5.17

Competitive Comparison of 1933 Industries's Beneish M-Score

For the Drug Manufacturers - Specialty & Generic subindustry, 1933 Industries'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.

1933 Industries's Beneish M-Score Distribution in the Drug Manufacturers Industry

For the Drug Manufacturers industry and Healthcare sector, 1933 Industries's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where 1933 Industries's Beneish M-Score falls into.

1933 Industries 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 1933 Industries 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 * 1.0533

0.528 * 0.4487

0.404 * 0.0005

0.892 * 1.172

0.115 * 0.8426

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8572

4.679 * -0.426535

0.327 * 1.6413

-5.17

This Year (Jan24) TTM:

Last Year (Jan23) TTM:

Total Receivables was $1.80 Mil.
Revenue was 3.535 + 4.021 + 3.738 + 3.021 = $14.32 Mil.
Gross Profit was 1.047 + 1.254 + 0.317 + -1.184 = $1.43 Mil.
Total Current Assets was $4.70 Mil.
Total Assets was $13.12 Mil.
Property, Plant and Equipment(Net PPE) was $8.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.77 Mil.
Selling, General, & Admin. Expense(SGA) was $2.35 Mil.
Total Current Liabilities was $4.54 Mil.
Long-Term Debt & Capital Lease Obligation was $11.86 Mil.
Net Income was -0.552 + -0.265 + -6.641 + -2.317 = $-9.78 Mil.
Non Operating Income was -0.01 + 0.009 + -3.904 + 0 = $-3.91 Mil.
Cash Flow from Operations was 0.183 + 0.045 + 0.279 + -0.783 = $-0.28 Mil.

Total Receivables was $1.45 Mil.
Revenue was 3.201 + 3.627 + 2.016 + 3.37 = $12.21 Mil.
Gross Profit was 0.035 + 0.386 + -1.464 + 1.592 = $0.55 Mil.
Total Current Assets was $9.04 Mil.
Total Assets was $21.26 Mil.
Property, Plant and Equipment(Net PPE) was $8.75 Mil.
Depreciation, Depletion and Amortization(DDA) was $1.50 Mil.
Selling, General, & Admin. Expense(SGA) was $2.34 Mil.
Total Current Liabilities was $6.32 Mil.
Long-Term Debt & Capital Lease Obligation was $9.88 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)
	=	(1.795 / 14.315)	/	(1.454 / 12.214)
	=	0.125393	/	0.119044
	=	1.0533

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)
	=	(0.549 / 12.214)	/	(1.434 / 14.315)
	=	0.044948	/	0.100175
	=	0.4487

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 - (4.701 + 8.413) / 13.115)	/	(1 - (9.039 + 8.754) / 21.264)
	=	7.6E-5	/	0.163234
	=	0.0005

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
	=	14.315	/	12.214
	=	1.172

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))
	=	(1.498 / (1.498 + 8.754))	/	(1.765 / (1.765 + 8.413))
	=	0.146118	/	0.173413
	=	0.8426

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)
	=	(2.351 / 14.315)	/	(2.34 / 12.214)
	=	0.164233	/	0.191583
	=	0.8572

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)
	=	((11.862 + 4.542) / 13.115)	/	((9.883 + 6.322) / 21.264)
	=	1.250782	/	0.762086
	=	1.6413

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
	=	(-9.775 - -3.905	-	-0.276)	/	13.115
	=	-0.426535

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.

1933 Industries has a M-score of -5.17 suggests that the company is unlikely to be a manipulator.

1933 Industries Beneish M-Score Related Terms

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1933 Industries (1933 Industries) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » 1933 Industries Inc (OTCPK:TGIFF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TGIF:Canada

Address

1055 West Hastings Street, Suite 300, Vancouver, BC, CAN, V6E 2E9

Website

https://www.1933industries.com

1933 Industries Inc is a vertically integrated cannabis company. The company is focused on the cultivation and manufacturing of cannabis consumer-branded goods. The Company operates in three segments, referred to as AMA, Infused MFG, and Corporate. AMA is focused on the cultivation and sale of medical and adult-use cannabis products, and Infused MFG is focused on the manufacturing of hemp-derived CBD products. The majority of revenue is generated from the AMA segment. The operations of AMA and Infused MFG are located in the United States. All revenues are earned in the United States.