GURUFOCUS.COM » STOCK LIST » Healthcare » Medical Devices & Instruments » Sonendo Inc (OTCPK:SONX) » Definitions » Beneish M-Score

Sonendo (Sonendo) Beneish M-Score : -3.35 (As of May. 05, 2024)


View and export this data going back to 2021. Start your Free Trial

What is Sonendo 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 -3.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SONX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.35   Med: -2.49   Max: -1.63
Current: -3.35

During the past 5 years, the highest Beneish M-Score of Sonendo was -1.63. The lowest was -3.35. And the median was -2.49.


Sonendo Beneish M-Score Historical Data

The historical data trend for Sonendo'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.

Sonendo Beneish M-Score Chart

Sonendo Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
- - - -1.63 -3.35

Sonendo Quarterly Data
Dec19 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
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 -1.63 -1.61 -2.12 -2.62 -3.35

Competitive Comparison of Sonendo's Beneish M-Score

For the Medical Devices subindustry, Sonendo'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.


Sonendo's Beneish M-Score Distribution in the Medical Devices & Instruments Industry

For the Medical Devices & Instruments industry and Healthcare sector, Sonendo's Beneish M-Score distribution charts can be found below:

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



Sonendo 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 Sonendo 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 * 0.8322+0.528 * 1.0293+0.404 * 1.4957+0.892 * 1.053+0.115 * 0.7698
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9884+4.679 * -0.16337-0.327 * 1.5837
=-3.35

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $5.08 Mil.
Revenue was 11.692 + 10.406 + 11.043 + 10.724 = $43.87 Mil.
Gross Profit was 3.832 + 2.446 + 1.098 + 3.346 = $10.72 Mil.
Total Current Assets was $65.27 Mil.
Total Assets was $78.16 Mil.
Property, Plant and Equipment(Net PPE) was $3.64 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.98 Mil.
Selling, General, & Admin. Expense(SGA) was $54.02 Mil.
Total Current Liabilities was $35.32 Mil.
Long-Term Debt & Capital Lease Obligation was $14.04 Mil.
Net Income was -10.878 + -16.98 + -17.69 + -15.371 = $-60.92 Mil.
Non Operating Income was -0.037 + -2.051 + 0 + 0 = $-2.09 Mil.
Cash Flow from Operations was -9.505 + -10.216 + -9.365 + -16.976 = $-46.06 Mil.
Total Receivables was $5.80 Mil.
Revenue was 12.23 + 9.846 + 10.547 + 9.033 = $41.66 Mil.
Gross Profit was 3.33 + 2.318 + 2.553 + 2.279 = $10.48 Mil.
Total Current Assets was $121.11 Mil.
Total Assets was $137.29 Mil.
Property, Plant and Equipment(Net PPE) was $5.32 Mil.
Depreciation, Depletion and Amortization(DDA) was $2.82 Mil.
Selling, General, & Admin. Expense(SGA) was $51.91 Mil.
Total Current Liabilities was $16.72 Mil.
Long-Term Debt & Capital Lease Obligation was $38.02 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)
=(5.081 / 43.865) / (5.798 / 41.656)
=0.115833 / 0.139188
=0.8322

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)
=(10.48 / 41.656) / (10.722 / 43.865)
=0.251584 / 0.244432
=1.0293

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 - (65.271 + 3.638) / 78.16) / (1 - (121.106 + 5.315) / 137.285)
=0.11836 / 0.079135
=1.4957

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
=43.865 / 41.656
=1.053

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))
=(2.816 / (2.816 + 5.315)) / (2.975 / (2.975 + 3.638))
=0.346329 / 0.449871
=0.7698

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)
=(54.022 / 43.865) / (51.906 / 41.656)
=1.231551 / 1.246063
=0.9884

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)
=((14.035 + 35.321) / 78.16) / ((38.024 + 16.716) / 137.285)
=0.631474 / 0.398733
=1.5837

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
=(-60.919 - -2.088 - -46.062) / 78.16
=-0.16337

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.

Sonendo has a M-score of -3.35 suggests that the company is unlikely to be a manipulator.


Sonendo Beneish M-Score Related Terms

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


Sonendo (Sonendo) Business Description

Traded in Other Exchanges
N/A
Address
26061 Merit Circle, Suite 102, Laguna Hills, CA, USA, 92653
Sonendo Inc is a commercial-stage medical technology company focused on saving teeth from tooth decay, the prevalent chronic disease globally. It has developed the GentleWave System, a technology platform designed to treat tooth decay by cleaning and disinfecting the microscopic spaces within teeth without the need to remove tooth structure. The Company operates in two business segments, Product and Software. Product segment includes sales of the Company's GentleWave System console and related accessories and instruments. Software segment includes sales of the Company's traditional software licenses for practice management software to enable an integrated digital office for endodontists.
Executives
Bjarne Bergheim director, officer: President and CEO C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Roy T Chen officer: Chief Talent Officer C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Michael Patrick Watts officer: Chief Financial Officer C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Olav Bergheim director, 10 percent owner ONE PALMER SQUARE, PRINCETON NJ 08542
Pudipeddi Vamsi Mohan Raj director 2820 ORCHARD PARKWAY, SAN JOSE CA 95134
Michael John Smith officer: Chief Commercial Officer C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Andrew J Kirkpatrick officer: Chief Operating Officer 1310 CHESAPEAKE TERRACE, SUNNYVALE CA 94089
General Atlantic, L.p. director, 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Bihl Anthony P Iii director 807 SMITH RIDGE ROAD, NEW CANAAN CT 06840
Mehrezad Khakpour officer: Chief Technology Officer C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Jacqueline Arnold Collins officer: VP, General Counsel C/O SONENDO, INC., 2601 MERIT CIRCLE, SUITE 102, LAGUNA HILLS CA 92653
Carolyn Beaver director 3595 JOHN HOPKINS COURT, SAN DIEGO CA 92121
General Atlantic (soi), L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY, LP, 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
General Atlantic Partners (bermuda) Eu, L.p. 10 percent owner C/O GENERAL ATLANTIC SERVICE COMPANY LP, 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055
Gap Coinvestments V, Llc 10 percent owner 55 EAST 52ND STREET, 33RD FLOOR, NEW YORK NY 10055