The Fresh Factory B.C. (TSXV:FRSH) Beneish M-Score : -3.77 (As of Jun. 20, 2024)

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What is The Fresh Factory B.C. 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 -3.77 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for The Fresh Factory B.C.'s Beneish M-Score or its related term are showing as below:

TSXV:FRSH' s Beneish M-Score Range Over the Past 10 Years
Min: -3.77 Med: -2.61 Max: 1.68
Current: -3.77

During the past 3 years, the highest Beneish M-Score of The Fresh Factory B.C. was 1.68. The lowest was -3.77. And the median was -2.61.

The Fresh Factory B.C. Beneish M-Score Historical Data

The historical data trend for The Fresh Factory B.C.'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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The Fresh Factory B.C. Beneish M-Score Chart

The Fresh Factory B.C. Annual Data

Trend

Dec21

Dec22

Dec23

Beneish M-Score

-3.40

The Fresh Factory B.C. Quarterly Data
	Sep20	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial								1.68	-0.86	-2.61	-3.40	-3.77

Competitive Comparison of The Fresh Factory B.C.'s Beneish M-Score

For the Packaged Foods subindustry, The Fresh Factory B.C.'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.

The Fresh Factory B.C.'s Beneish M-Score Distribution in the Consumer Packaged Goods Industry

For the Consumer Packaged Goods industry and Consumer Defensive sector, The Fresh Factory B.C.'s Beneish M-Score distribution charts can be found below:

* The bar in red indicates where The Fresh Factory B.C.'s Beneish M-Score falls into.

The Fresh Factory B.C. 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 The Fresh Factory B.C. 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 * 0.8393

0.528 * 0.1235

0.404 * 0.7787

0.892 * 1.2421

0.115 * 0.7977

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.7888

4.679 * -0.165588

0.327 * 1.1367

-3.77

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was C$2.82 Mil.
Revenue was 11.228 + 8.622 + 7.741 + 7.697 = C$35.29 Mil.
Gross Profit was 2.179 + -0.855 + 1.17 + 1.206 = C$3.70 Mil.
Total Current Assets was C$8.01 Mil.
Total Assets was C$15.76 Mil.
Property, Plant and Equipment(Net PPE) was C$7.72 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1.69 Mil.
Selling, General, & Admin. Expense(SGA) was C$7.55 Mil.
Total Current Liabilities was C$5.86 Mil.
Long-Term Debt & Capital Lease Obligation was C$2.31 Mil.
Net Income was -0.145 + -1.036 + -0.639 + -1.155 = C$-2.98 Mil.
Non Operating Income was 0 + 0.432 + 0.464 + 0 = C$0.90 Mil.
Cash Flow from Operations was 1.086 + -0.258 + -0.055 + -2.035 = C$-1.26 Mil.

Total Receivables was C$2.71 Mil.
Revenue was 7.378 + 7.851 + 7.135 + 6.045 = C$28.41 Mil.
Gross Profit was 0.23 + -1.084 + 0.412 + 0.81 = C$0.37 Mil.
Total Current Assets was C$8.12 Mil.
Total Assets was C$16.35 Mil.
Property, Plant and Equipment(Net PPE) was C$8.20 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1.37 Mil.
Selling, General, & Admin. Expense(SGA) was C$7.71 Mil.
Total Current Liabilities was C$5.22 Mil.
Long-Term Debt & Capital Lease Obligation was C$2.24 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)
	=	(2.821 / 35.288)	/	(2.706 / 28.409)
	=	0.079942	/	0.095252
	=	0.8393

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)
	=	(0.368 / 28.409)	/	(3.7 / 35.288)
	=	0.012954	/	0.104852
	=	0.1235

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 - (8.009 + 7.72) / 15.756)	/	(1 - (8.118 + 8.2) / 16.354)
	=	0.001714	/	0.002201
	=	0.7787

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
	=	35.288	/	28.409
	=	1.2421

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))
	=	(1.368 / (1.368 + 8.2))	/	(1.686 / (1.686 + 7.72))
	=	0.142977	/	0.179247
	=	0.7977

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)
	=	(7.551 / 35.288)	/	(7.707 / 28.409)
	=	0.213982	/	0.271287
	=	0.7888

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)
	=	((2.312 + 5.862) / 15.756)	/	((2.244 + 5.22) / 16.354)
	=	0.518786	/	0.456402
	=	1.1367

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
	=	(-2.975 - 0.896	-	-1.262)	/	15.756
	=	-0.165588

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 Fresh Factory B.C. has a M-score of -3.77 suggests that the company is unlikely to be a manipulator.

The Fresh Factory B.C. Beneish M-Score Related Terms

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The Fresh Factory B.C. (TSXV:FRSH) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Defensive » Consumer Packaged Goods » The Fresh Factory B.C. Ltd (TSXV:FRSH) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

238 Tubeway Drive, Carol Stream, IL, USA, 60188

Website

https://www.thefreshfactory.co

The Fresh Factory B.C. Ltd is a vertically integrated company focused on accelerating the growth of plant-based and clean-label food and beverage brands. It owns or partners with emerging brands in the plant-based food and beverage space to develop, formulate, manufacture, distribute and sell products made from fresh produce and recognizable ingredients.