SLANG Worldwide (XCNQ:SLNG) Beneish M-Score : -5.23 (As of May. 30, 2024)

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What is SLANG Worldwide 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 -5.23 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

XCNQ:SLNG' s Beneish M-Score Range Over the Past 10 Years
Min: -5.48 Med: -4.07 Max: -1.83
Current: -5.23

During the past 7 years, the highest Beneish M-Score of SLANG Worldwide was -1.83. The lowest was -5.48. And the median was -4.07.

SLANG Worldwide Beneish M-Score Historical Data

The historical data trend for SLANG Worldwide'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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SLANG Worldwide Beneish M-Score Chart

SLANG Worldwide Annual Data

Trend

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.83

-2.91

-5.48

-5.23

SLANG Worldwide 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	Get a 7-Day Free Trial															-5.48	-5.62	-5.17	-5.38	-5.23

Competitive Comparison of SLANG Worldwide's Beneish M-Score

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

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

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

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

SLANG Worldwide 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 SLANG Worldwide 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 * 0.8772

0.528 * 0.8253

0.404 * 0.6607

0.892 * 0.9344

0.115 * 1.3612

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9286

4.679 * -0.475379

0.327 * 1.541

-5.23

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was C$2.32 Mil.
Revenue was 7.322 + 9.101 + 8.436 + 10.823 = C$35.68 Mil.
Gross Profit was 3.7 + 4.858 + 4.346 + 5.715 = C$18.62 Mil.
Total Current Assets was C$19.35 Mil.
Total Assets was C$33.20 Mil.
Property, Plant and Equipment(Net PPE) was C$5.86 Mil.
Depreciation, Depletion and Amortization(DDA) was C$2.94 Mil.
Selling, General, & Admin. Expense(SGA) was C$22.21 Mil.
Total Current Liabilities was C$28.34 Mil.
Long-Term Debt & Capital Lease Obligation was C$7.63 Mil.
Net Income was -9 + -5.106 + -2.928 + -2.331 = C$-19.37 Mil.
Non Operating Income was -1.014 + -0.682 + 0.241 + 0.495 = C$-0.96 Mil.
Cash Flow from Operations was -2.877 + 0.75 + -0.862 + 0.368 = C$-2.62 Mil.

Total Receivables was C$2.83 Mil.
Revenue was 11.777 + 8.17 + 9.868 + 8.374 = C$38.19 Mil.
Gross Profit was 4.694 + 3.604 + 4.493 + 3.655 = C$16.45 Mil.
Total Current Assets was C$19.76 Mil.
Total Assets was C$42.76 Mil.
Property, Plant and Equipment(Net PPE) was C$7.42 Mil.
Depreciation, Depletion and Amortization(DDA) was C$6.18 Mil.
Selling, General, & Admin. Expense(SGA) was C$25.60 Mil.
Total Current Liabilities was C$9.76 Mil.
Long-Term Debt & Capital Lease Obligation was C$20.30 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)
	=	(2.322 / 35.682)	/	(2.833 / 38.189)
	=	0.065075	/	0.074184
	=	0.8772

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)
	=	(16.446 / 38.189)	/	(18.619 / 35.682)
	=	0.430648	/	0.521804
	=	0.8253

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 - (19.352 + 5.858) / 33.203)	/	(1 - (19.759 + 7.418) / 42.755)
	=	0.240731	/	0.364355
	=	0.6607

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
	=	35.682	/	38.189
	=	0.9344

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))
	=	(6.177 / (6.177 + 7.418))	/	(2.935 / (2.935 + 5.858))
	=	0.454358	/	0.333788
	=	1.3612

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)
	=	(22.21 / 35.682)	/	(25.598 / 38.189)
	=	0.622443	/	0.670298
	=	0.9286

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)
	=	((7.633 + 28.337) / 33.203)	/	((20.302 + 9.756) / 42.755)
	=	1.083336	/	0.703029
	=	1.541

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
	=	(-19.365 - -0.96	-	-2.621)	/	33.203
	=	-0.475379

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.

SLANG Worldwide has a M-score of -5.23 suggests that the company is unlikely to be a manipulator.

SLANG Worldwide Beneish M-Score Related Terms

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SLANG Worldwide (XCNQ:SLNG) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Healthcare » Drug Manufacturers » SLANG Worldwide Inc (XCNQ:SLNG) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

SLGWF:USA

Address

50 Carroll Street, Toronto, ON, CAN, M4M 3G3

Website

https://www.slangww.com

SLANG Worldwide Inc is a cannabis-focused consumer packaged goods company. It is focused on acquiring and developing regional brands, as well as creating new brands to meet the needs of cannabis consumers. It operates in two reportable segments Core Markets, and Emerging Markets, and the majority of its revenue comes from the Core Market. Geographically it operates in Canada and the U.S. It derives the majority of its revenue from the U.S. Its brand portfolio involves, Firefly, O.pen, and Alchemy Naturals.

Executives

Christopher Lee Driessen

Director, Senior Officer