Decibel Cannabis Stock Beneish M Score

DB Stock  CAD 0.07  0.01  7.14%   
This module uses fundamental data of Decibel Cannabis to approximate the value of its Beneish M Score. Decibel Cannabis M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Investing Opportunities to better understand how to build diversified portfolios, which includes a position in Decibel Cannabis. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
At this time, Decibel Cannabis' Net Debt is fairly stable compared to the past year. Short and Long Term Debt Total is likely to climb to about 58.4 M in 2024, whereas Long Term Debt is likely to drop slightly above 29.2 M in 2024. At this time, Decibel Cannabis' POCF Ratio is fairly stable compared to the past year. Interest Coverage is likely to climb to 0.51 in 2024, whereas Book Value Per Share is likely to drop 0.11 in 2024.
At this time, Decibel Cannabis' M Score is inapplicable. The earnings manipulation may begin if Decibel Cannabis' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Decibel Cannabis executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Decibel Cannabis' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-1.76
Beneish M Score - Inapplicable
Elasticity of Receivables

1.0

Focus
Asset Quality

3.15

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.86

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

0.66

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.0

Focus

Decibel Cannabis Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Decibel Cannabis' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables20.2 M19.2 M
Sufficiently Up
Slightly volatile
Total Assets170.1 M162 M
Sufficiently Up
Slightly volatile
Total Current Assets84.3 M80.2 M
Sufficiently Up
Slightly volatile
Property Plant Equipment48.3 M71.9 M
Way Down
Slightly volatile
Selling General Administrative32.5 M31 M
Sufficiently Up
Slightly volatile
Total Current Liabilities65.1 M62 M
Sufficiently Up
Slightly volatile
Short Term Debt11.5 M11 M
Sufficiently Up
Slightly volatile
Long Term Debt29.2 M40.3 M
Way Down
Slightly volatile
Short Term Investments142.4 K149.9 K
Notably Down
Slightly volatile
Gross Profit Margin0.310.361
Fairly Down
Slightly volatile

Decibel Cannabis Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Decibel Cannabis' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Decibel Cannabis in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Decibel Cannabis' degree of accounting gimmicks and manipulations.

About Decibel Cannabis Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

4.43 Million

At this time, Decibel Cannabis' Depreciation And Amortization is fairly stable compared to the past year.

Decibel Cannabis Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Decibel Cannabis. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables707K3.9M12.9M16.7M19.2M20.2M
Total Revenue6.2M29.9M52.5M79.3M114.0M119.7M
Total Assets88.5M88.7M125.9M140.9M162.0M170.1M
Total Current Assets19.5M19.9M56.6M69.8M80.2M84.3M
Net Debt28.9M39.4M48.0M45.4M52.2M54.9M
Short Term Debt2.4M2.2M22.2M9.6M11.0M11.5M
Long Term Debt32.7M37.1M24.1M35.0M40.3M29.2M
Operating Income(3.6M)(5.4M)6.0M(714K)2.3M2.4M

About Decibel Cannabis Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Decibel Cannabis's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Decibel Cannabis using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Decibel Cannabis based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Thematic Opportunities

Explore Investment Opportunities

Build portfolios using Macroaxis predefined set of investing ideas. Many of Macroaxis investing ideas can easily outperform a given market. Ideas can also be optimized per your risk profile before portfolio origination is invoked. Macroaxis thematic optimization helps investors identify companies most likely to benefit from changes or shifts in various micro-economic or local macro-level trends. Originating optimal thematic portfolios involves aligning investors' personal views, ideas, and beliefs with their actual investments.
Explore Investing Ideas  

Additional Tools for Decibel Stock Analysis

When running Decibel Cannabis' price analysis, check to measure Decibel Cannabis' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Decibel Cannabis is operating at the current time. Most of Decibel Cannabis' value examination focuses on studying past and present price action to predict the probability of Decibel Cannabis' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Decibel Cannabis' price. Additionally, you may evaluate how the addition of Decibel Cannabis to your portfolios can decrease your overall portfolio volatility.