Allied (Allied) Beneish M-Score : -7.13 (As of May. 22, 2024)

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What is Allied 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 -7.13 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ALID' s Beneish M-Score Range Over the Past 10 Years
Min: -33.13 Med: -7.2 Max: -3.4
Current: -7.13

During the past 6 years, the highest Beneish M-Score of Allied was -3.40. The lowest was -33.13. And the median was -7.20.

Allied Beneish M-Score Historical Data

The historical data trend for Allied'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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Allied Beneish M-Score Chart

Allied Annual Data

Trend

Mar18

Mar19

Aug20

Aug21

Aug22

Aug23

Beneish M-Score

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-33.13

-17.93

Allied Quarterly Data
	Mar19	Jun19	Nov19	Feb20	May20	Aug20	Nov20	Feb21	May21	Aug21	Nov21	Feb22	May22	Aug22	Nov22	Feb23	May23	Aug23	Nov23	Feb24
Beneish M-Score	Get a 7-Day Free Trial															-5.45	-3.40	-17.93	-7.32	-7.13

Competitive Comparison of Allied's Beneish M-Score

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

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

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

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

Allied 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 Allied 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 * 12.3746

0.528 * -0.0427

0.404 * 0.6254

0.892 * 0.1088

0.115 * 0.1862

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 7.6486

4.679 * -2.492576

0.327 * 3.2096

-7.13

This Year (Feb24) TTM:

Last Year (Feb23) TTM:

Total Receivables was $0.17 Mil.
Revenue was 0 + 0.019 + 0.002 + 0 = $0.02 Mil.
Gross Profit was 0 + 0.017 + -1.505 + 0 = $-1.49 Mil.
Total Current Assets was $0.77 Mil.
Total Assets was $2.29 Mil.
Property, Plant and Equipment(Net PPE) was $1.48 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.14 Mil.
Selling, General, & Admin. Expense(SGA) was $3.78 Mil.
Total Current Liabilities was $9.72 Mil.
Long-Term Debt & Capital Lease Obligation was $0.10 Mil.
Net Income was -0.866 + -0.837 + -5.136 + -2.166 = $-9.01 Mil.
Non Operating Income was 0.012 + 0.048 + -2.559 + 0.378 = $-2.12 Mil.
Cash Flow from Operations was -0.478 + -0.466 + 0.053 + -0.285 = $-1.18 Mil.

Total Receivables was $0.13 Mil.
Revenue was 0 + 0.07 + 0.116 + 0.007 = $0.19 Mil.
Gross Profit was 0 + 0.044 + 0.803 + -0.263 = $0.58 Mil.
Total Current Assets was $1.70 Mil.
Total Assets was $6.11 Mil.
Property, Plant and Equipment(Net PPE) was $4.22 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.07 Mil.
Selling, General, & Admin. Expense(SGA) was $4.54 Mil.
Total Current Liabilities was $8.02 Mil.
Long-Term Debt & Capital Lease Obligation was $0.14 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)
	=	(0.171 / 0.021)	/	(0.127 / 0.193)
	=	8.142857	/	0.658031
	=	12.3746

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)
	=	(0.584 / 0.193)	/	(-1.488 / 0.021)
	=	3.025907	/	-70.857143
	=	-0.0427

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 - (0.767 + 1.478) / 2.29)	/	(1 - (1.699 + 4.219) / 6.11)
	=	0.019651	/	0.031424
	=	0.6254

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
	=	0.021	/	0.193
	=	0.1088

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))
	=	(0.07 / (0.07 + 4.219))	/	(0.142 / (0.142 + 1.478))
	=	0.016321	/	0.087654
	=	0.1862

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)
	=	(3.78 / 0.021)	/	(4.542 / 0.193)
	=	180	/	23.533679
	=	7.6486

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)
	=	((0.096 + 9.72) / 2.29)	/	((0.137 + 8.023) / 6.11)
	=	4.286463	/	1.335516
	=	3.2096

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
	=	(-9.005 - -2.121	-	-1.176)	/	2.29
	=	-2.492576

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.

Allied has a M-score of -7.13 suggests that the company is unlikely to be a manipulator.

Allied Beneish M-Score Related Terms

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Allied (Allied) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » Allied Corp (OTCPK:ALID) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

1405 St. Paul Street, Suite 201, Kelowna, BC, CAN, V1Y 9N2

Website

https://www.allied.health

Allied Corp is an international cannabis company with a mission to help people suffering from Post-Traumatic Stress Disorder (PTSD) by researching, creating, and producing targeted cannabinoid health solutions. The company uses an evidence-informed scientific approach to make this mission possible through cutting-edge pharmaceutical research and development, plant-based production, and the development of therapeutic products. The company operates in two segments which include Allied and Allied Colombia. Its geographical segments consist of Colombia and Canada. The company's revenue is comprised ofsales ofcannabis products.

Executives

James George Robinson	director, 10 percent owner	10 EAST LEE STREET, SUITE 2705, BALTIMORE MD 21202
Anthony Zelen	director, 10 percent owner	1406 MINE HILL LANE, KELOWNA A1 V1P 1S5
Calum Hughes	director, 10 percent owner, officer: Chief Executive Officer	1847 CROSSGLEN COURT, KELOWNA A1 V1V 1S4
David Weinkauf	director, 10 percent owner, officer: Chief Business Development Off	192 SIERRA MORENA LANDING, SW CALGARY A0 T3H 4K4
Paul James Bullock	director, 10 percent owner, officer: Chief Operating Officer	1400 ST PAUL ST, SUITE 201, KELOWNA Z4 V1Y9N2