Green Thumb Industries (XCNQ:GTII) Beneish M-Score

: -2.76 (As of Today)

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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 -2.76 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XCNQ:GTII' s Beneish M-Score Range Over the Past 10 Years
Min: -2.76 Med: -1.92 Max: 0.75
Current: -2.76

During the past 13 years, the highest Beneish M-Score of Green Thumb Industries was 0.75. The lowest was -2.76. And the median was -1.92.

Green Thumb Industries Beneish M-Score Historical Data

The historical data trend for Green Thumb 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.

* Premium members only.

Green Thumb Industries Annual Data

Trend

Feb14

Feb15

Feb16

Feb17

Feb18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

0.75

-1.48

-2.39

-1.92

-2.76

Green Thumb Industries Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-1.92	-2.52	-2.13	-2.42	-2.76

Competitive Comparison

For the Drug Manufacturers - Specialty & Generic subindustry, Green Thumb 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.

Green Thumb Industries Beneish M-Score Distribution

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

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

Green Thumb 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 Green Thumb 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 * 1.0355

0.528 * 0.9918

0.404 * 0.9315

0.892 * 1.0659

0.115 * 1.0419

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1178

4.679 * -0.069957

0.327 * 0.9927

-2.76

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$58 Mil.
Revenue was 373.275 + 372.641 + 335.323 + 340.072 = C$1,421 Mil.
Gross Profit was 191.43 + 181.053 + 166.447 + 170.656 = C$710 Mil.
Total Current Assets was C$460 Mil.
Total Assets was C$3,341 Mil.
Property, Plant and Equipment(Net PPE) was C$1,242 Mil.
Depreciation, Depletion and Amortization(DDA) was C$201 Mil.
Selling, General, & Admin. Expense(SGA) was C$461 Mil.
Total Current Liabilities was C$169 Mil.
Long-Term Debt & Capital Lease Obligation was C$745 Mil.
Net Income was 4.315 + 14.224 + 17.803 + 12.505 = C$49 Mil.
Non Operating Income was -21.774 + -0.854 + -0.359 + 1.264 = C$-22 Mil.
Cash Flow from Operations was 95.382 + 82.328 + 24.336 + 102.227 = C$304 Mil.

Total Receivables was C$52 Mil.
Revenue was 352.218 + 348.407 + 325.62 + 307.132 = C$1,333 Mil.
Gross Profit was 168.434 + 175.061 + 161.072 + 155.642 = C$660 Mil.
Total Current Assets was C$477 Mil.
Total Assets was C$3,306 Mil.
Property, Plant and Equipment(Net PPE) was C$1,087 Mil.
Depreciation, Depletion and Amortization(DDA) was C$184 Mil.
Selling, General, & Admin. Expense(SGA) was C$387 Mil.
Total Current Liabilities was C$199 Mil.
Long-Term Debt & Capital Lease Obligation was C$712 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)
	=	(57.655 / 1421.311)	/	(52.232 / 1333.377)
	=	0.040565	/	0.039173
	=	1.0355

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)
	=	(660.209 / 1333.377)	/	(709.586 / 1421.311)
	=	0.495141	/	0.499248
	=	0.9918

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 - (459.849 + 1241.617) / 3340.66)	/	(1 - (477.31 + 1087.112) / 3305.948)
	=	0.49068	/	0.526786
	=	0.9315

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
	=	1421.311	/	1333.377
	=	1.0659

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))
	=	(184.455 / (184.455 + 1087.112))	/	(200.836 / (200.836 + 1241.617))
	=	0.145061	/	0.139232
	=	1.0419

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)
	=	(460.673 / 1421.311)	/	(386.62 / 1333.377)
	=	0.324118	/	0.289956
	=	1.1178

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)
	=	((744.576 + 169.109) / 3340.66)	/	((711.734 + 199.117) / 3305.948)
	=	0.273504	/	0.275519
	=	0.9927

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
	=	(48.847 - -21.723	-	304.273)	/	3340.66
	=	-0.069957

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.

Green Thumb Industries has a M-score of -2.76 suggests that the company is unlikely to be a manipulator.

Green Thumb Industries Beneish M-Score Related Terms

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Green Thumb Industries (XCNQ:GTII) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Green Thumb Industries Inc (XCNQ:GTII) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GTBIF:USA R9U2:Germany

Address

325 West Huron Street, Suite 700, Chicago, IL, USA, 60654

Website

https://www.gtigrows.com

Green Thumb Industries is headquartered in Chicago, Illinois, and produces and sells medicinal and recreational cannabis through wholesale and retail channels in the United States. It has a presence in 15 states and operates roughly 87 cannabis stores under the brand Rise. GTI is focusing its expansion on limited license states with large populations, and it does not currently export into the global medical market due to U.S. federal prohibition. It offers multiple products under a portfolio of cannabis consumer packaged goods brands, including &Shine, Beboe, Dogwalkers, Doctor Solomon's, Good Green, incredibles and RYTHM.