GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Simplicity Esports and Gaming Co (OTCPK:WINR) » Definitions » Beneish M-Score

Simplicity Esports and Gaming Co (Simplicity Esports and Gaming Co) Beneish M-Score : 0.00 (As of Apr. 30, 2024)


View and export this data going back to 2017. Start your Free Trial

What is Simplicity Esports and Gaming Co 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.

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

During the past 6 years, the highest Beneish M-Score of Simplicity Esports and Gaming Co was 0.00. The lowest was 0.00. And the median was 0.00.


Simplicity Esports and Gaming Co Beneish M-Score Historical Data

The historical data trend for Simplicity Esports and Gaming Co'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.

Simplicity Esports and Gaming Co Beneish M-Score Chart

Simplicity Esports and Gaming Co Annual Data
Trend May17 May18 May19 May20 May21 May22
Beneish M-Score
Get a 7-Day Free Trial - - 16.82 -3.89 -11.79

Simplicity Esports and Gaming Co Quarterly Data
May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22 Aug22 Nov22 Feb23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.31 -11.79 -36.99 -104.87 -114.01

Competitive Comparison of Simplicity Esports and Gaming Co's Beneish M-Score

For the Electronic Gaming & Multimedia subindustry, Simplicity Esports and Gaming Co'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.


Simplicity Esports and Gaming Co's Beneish M-Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Simplicity Esports and Gaming Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Simplicity Esports and Gaming Co's Beneish M-Score falls into.



Simplicity Esports and Gaming Co 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 Simplicity Esports and Gaming Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 7.489+0.528 * 0.9521+0.404 * 0.1274+0.892 * 0.4838+0.115 * 0.2168
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2781+4.679 * -21.035461-0.327 * 56.3333
=-114.01

* 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 (Feb23) TTM:Last Year (Feb22) TTM:
Total Receivables was $0.22 Mil.
Revenue was 0.145 + 0.175 + 0.344 + 0.915 = $1.58 Mil.
Gross Profit was 0.098 + 0.102 + 0.25 + 0.052 = $0.50 Mil.
Total Current Assets was $0.25 Mil.
Total Assets was $0.28 Mil.
Property, Plant and Equipment(Net PPE) was $0.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.20 Mil.
Selling, General, & Admin. Expense(SGA) was $3.64 Mil.
Total Current Liabilities was $9.45 Mil.
Long-Term Debt & Capital Lease Obligation was $0.08 Mil.
Net Income was -0.775 + 5.552 + -4.157 + -9.252 = $-8.63 Mil.
Non Operating Income was -0.098 + 6.852 + -2.571 + -5.998 = $-1.82 Mil.
Cash Flow from Operations was -0.166 + -0.343 + -0.174 + -0.202 = $-0.89 Mil.
Total Receivables was $0.06 Mil.
Revenue was 0.889 + 0.844 + 0.905 + 0.626 = $3.26 Mil.
Gross Profit was 0.352 + 0.358 + 0.298 + -0.02 = $0.99 Mil.
Total Current Assets was $1.23 Mil.
Total Assets was $10.72 Mil.
Property, Plant and Equipment(Net PPE) was $2.34 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.63 Mil.
Selling, General, & Admin. Expense(SGA) was $5.89 Mil.
Total Current Liabilities was $3.77 Mil.
Long-Term Debt & Capital Lease Obligation was $2.66 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)
=(0.221 / 1.579) / (0.061 / 3.264)
=0.139962 / 0.018689
=7.489

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)
=(0.988 / 3.264) / (0.502 / 1.579)
=0.302696 / 0.317923
=0.9521

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 - (0.254 + 0.004) / 0.282) / (1 - (1.226 + 2.335) / 10.724)
=0.085106 / 0.667941
=0.1274

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
=1.579 / 3.264
=0.4838

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))
=(0.63 / (0.63 + 2.335)) / (0.196 / (0.196 + 0.004))
=0.212479 / 0.98
=0.2168

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)
=(3.643 / 1.579) / (5.892 / 3.264)
=2.307156 / 1.805147
=1.2781

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)
=((0.083 + 9.448) / 0.282) / ((2.66 + 3.774) / 10.724)
=33.797872 / 0.599963
=56.3333

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
=(-8.632 - -1.815 - -0.885) / 0.282
=-21.035461

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.

Simplicity Esports and Gaming Co has a M-score of -114.01 suggests that the company is unlikely to be a manipulator.


Simplicity Esports and Gaming Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Simplicity Esports and Gaming Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Simplicity Esports and Gaming Co (Simplicity Esports and Gaming Co) Business Description

Traded in Other Exchanges
N/A
Address
7000 W. Palmetto Park Road, Suite 505, Boca Raton, FL, USA, 33433
Simplicity Esports and Gaming Co is a North American esports organization managing esports teams domestically and internationally. The company through its subsidiaries owns and manages professional esports teams competing in games such as Overwatch, Apex Legends, PUBG, and more. The company owns Corporate and Franchised Gaming Centers. The company reports in Four segments namely Franchise royalties and fees, which is the key revenue generator; Company-owned stores; Esports revenue; and Franchise deposit revenue.
Executives
Beatrice Tarka director 800 WEST EL CAMINO REAL, SUITE 275, MOUNTAIN VIEW CA 94040
Roman Nehemiah Franklin director, officer: President 1345 AVENUE OF THE AMERICAS, 2ND FLOOR, NEW YORK NY 10105
Herrmann William H Jr director PO BOX 6, BRYN ATHYN PA 19009
Jed Philip Kaplan director, officer: CEO and Interim CFO C/O SIMPLICITY ESPORTS AND GAMING CO., 7000 W PALMETTO PARK ROAD SUITE 210, BOCA RATON FL 33433
Edward L Jaroski director 5847 SAN FELIPE, SUITE 4100, HOUSTON TX 77057
Nancy L. Hennessey officer: Chief Financial Officer 7000, W. PALMETTO PARK RD, SUITE 505, BOCA RATON FL 33433
Laila Cavalcanti Loss director 7000W PALMETTO PARK RD, SUITE 505, BOCA RATON FL 33433
Lau Knicks officer: Chief Financial Officer 1980 FESTIVAL PLAZA DR., SUITE 750, LAS VEGAS NV 89135
Polar Asset Management Partners Inc. 10 percent owner 16 YORK STREET SUITE 2900, TORONTO A6 M5J 0E6
K2 Principal Fund, L.p. 10 percent owner 2 BLOOR STREET WEST, SUITE 801, TORONTO A6 M4W 3E2
K2 Genpar 2017 Inc. 10 percent owner 2 BLOOR STREET WEST, SUITE 801, TORONTO A6 M4W 3E2
Steven Michael Grossman officer: President of Subsidiary C/O SIMPLICITY ESPORTS AND GAMING CO., 7000 W PALMETTO PARK ROAD SUITE 210, BOCA RATON FL 33433
Donald R Caldwell director 5 RADNOR CORP CENTER STE 555, RADNOR PA 19087
Max Wayne Hooper director 1345 AVE OF THE AMERICAS 2ND FL, NEW YORK NY 10105
Frank Leavy director 1345 AVENUE OF THE AMERICAS, 2ND FLOOR, NEW YORK NY 10105

Simplicity Esports and Gaming Co (Simplicity Esports and Gaming Co) Headlines

From GuruFocus