Real Luck Group (TSXV:LUCK) Beneish M-Score : 128.16 (As of May. 25, 2024)

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What is Real Luck Group 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.

Warning Sign:

Beneish M-Score 128.16 higher than -1.78, which implies that the company might have manipulated its financial results.

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

TSXV:LUCK' s Beneish M-Score Range Over the Past 10 Years
Min: -4.2 Med: 3.71 Max: 128.16
Current: 128.16

During the past 4 years, the highest Beneish M-Score of Real Luck Group was 128.16. The lowest was -4.20. And the median was 3.71.

Real Luck Group Beneish M-Score Historical Data

The historical data trend for Real Luck Group'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.

* Premium members only.

Real Luck Group Beneish M-Score Chart

Real Luck Group Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

67.93

3.71

Real Luck Group Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial										-3.40	-1.01	3.71	106.68	128.16

Competitive Comparison of Real Luck Group's Beneish M-Score

For the Gambling subindustry, Real Luck Group'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.

Real Luck Group's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Real Luck Group's Beneish M-Score distribution charts can be found below:

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

Real Luck Group 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 Real Luck Group 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

0.528 * 303.8628

0.404 * 13.4549

0.892 * 19.98

0.115 * 0.4481

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.0801

4.679 * -5.046768

0.327 * 82.9287

128.16

This Year (Sep23) TTM:

Last Year (Jun22) TTM:

Total Receivables was C$0.00 Mil.
Revenue was 0.246 + 0.625 + 0.09 + 0.038 = C$1.00 Mil.
Gross Profit was -0.039 + 0.129 + 0.003 + -0.117 = C$-0.02 Mil.
Total Current Assets was C$0.70 Mil.
Total Assets was C$0.73 Mil.
Property, Plant and Equipment(Net PPE) was C$0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.06 Mil.
Selling, General, & Admin. Expense(SGA) was C$11.11 Mil.
Total Current Liabilities was C$3.27 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.00 Mil.
Net Income was -1.715 + -4.165 + -3.119 + -1.967 = C$-10.97 Mil.
Non Operating Income was -0.238 + 0.147 + 0.251 + -0.128 = C$0.03 Mil.
Cash Flow from Operations was 0 + -3.071 + -2.521 + -1.737 = C$-7.33 Mil.

Total Receivables was C$0.10 Mil.
Revenue was 0.014 + 0.019 + 0.01 + 0.007 = C$0.05 Mil.
Gross Profit was -0.049 + -0.188 + -0.068 + -0.06 = C$-0.37 Mil.
Total Current Assets was C$11.16 Mil.
Total Assets was C$11.29 Mil.
Property, Plant and Equipment(Net PPE) was C$0.10 Mil.
Depreciation, Depletion and Amortization(DDA) was C$0.08 Mil.
Selling, General, & Admin. Expense(SGA) was C$6.94 Mil.
Total Current Liabilities was C$0.60 Mil.
Long-Term Debt & Capital Lease Obligation was C$0.01 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)
	=	(0 / 0.999)	/	(0.102 / 0.05)
	=	0	/	2.04
	=	0

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)
	=	(-0.365 / 0.05)	/	(-0.024 / 0.999)
	=	-7.3	/	-0.024024
	=	303.8628

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 - (0.701 + 0) / 0.727)	/	(1 - (11.156 + 0.101) / 11.287)
	=	0.035763	/	0.002658
	=	13.4549

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
	=	0.999	/	0.05
	=	19.98

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))
	=	(0.082 / (0.082 + 0.101))	/	(0.061 / (0.061 + 0))
	=	0.448087	/	1
	=	0.4481

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)
	=	(11.109 / 0.999)	/	(6.941 / 0.05)
	=	11.12012	/	138.82
	=	0.0801

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)
	=	((0 + 3.269) / 0.727)	/	((0.012 + 0.6) / 11.287)
	=	4.496561	/	0.054222
	=	82.9287

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
	=	(-10.966 - 0.032	-	-7.329)	/	0.727
	=	-5.046768

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.

Real Luck Group has a M-score of 128.16 signals that the company is likely to be a manipulator.

Real Luck Group Beneish M-Score Related Terms

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Real Luck Group (TSXV:LUCK) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Real Luck Group Ltd (TSXV:LUCK) » Definitions » Beneish M-Score

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LUKEF:USA

Address

350 7th Avenue SW, Suite 3400, Calgary, AB, CAN, T2P 3N9

Website

https://www.realluckgroup.com

Real Luck Group Ltd is a betting company that offers legal, real-money betting, live streams, and statistics on all esports and sports on desktop and mobile devices. The company has a Business-to-Consumer (B2C) platform, and by leveraging shared technology, data, and resources, the company offers an extensive range of betting options for esports tournaments and an in-house customized user interface and user experience, built on a technology stack that supports multiple odds and streaming sources, allows the company to deliver deep esports betting coverage.

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