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Lexaria Bioscience (Lexaria Bioscience) Beneish M-Score : -1.37 (As of May. 01, 2024)


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What is Lexaria Bioscience 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.

Warning Sign:

Beneish M-Score -1.37 higher than -1.78, which implies that the company might have manipulated its financial results.

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

LEXX' s Beneish M-Score Range Over the Past 10 Years
Min: -13.58   Med: -3.8   Max: 2.92
Current: -1.37

During the past 13 years, the highest Beneish M-Score of Lexaria Bioscience was 2.92. The lowest was -13.58. And the median was -3.80.


Lexaria Bioscience Beneish M-Score Historical Data

The historical data trend for Lexaria Bioscience'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.

Lexaria Bioscience Beneish M-Score Chart

Lexaria Bioscience Annual Data
Trend Oct13 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21 Aug22 Aug23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -4.39 -3.22 -1.88 -3.85 -4.48

Lexaria Bioscience Quarterly Data
May19 Aug19 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 Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -4.61 -5.44 -4.48 -1.56 -1.37

Competitive Comparison of Lexaria Bioscience's Beneish M-Score

For the Biotechnology subindustry, Lexaria Bioscience'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.


Lexaria Bioscience's Beneish M-Score Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Lexaria Bioscience's Beneish M-Score distribution charts can be found below:

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



Lexaria Bioscience 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 Lexaria Bioscience 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 * 2.221+0.528 * 0.797+0.404 * 0.8248+0.892 * 1.1733+0.115 * 0.8403
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5981+4.679 * -0.030227-0.327 * 0.6992
=-1.37

* 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 (Feb24) TTM:Last Year (Feb23) TTM:
Total Receivables was $0.36 Mil.
Revenue was 0.145 + 0.151 + -0.003 + 0.093 = $0.39 Mil.
Gross Profit was 0.145 + 0.146 + -0.003 + 0.08 = $0.37 Mil.
Total Current Assets was $5.42 Mil.
Total Assets was $6.35 Mil.
Property, Plant and Equipment(Net PPE) was $0.38 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.14 Mil.
Selling, General, & Admin. Expense(SGA) was $2.67 Mil.
Total Current Liabilities was $0.08 Mil.
Long-Term Debt & Capital Lease Obligation was $0.12 Mil.
Net Income was -0.65 + -1.179 + -1.239 + -2.372 = $-5.44 Mil.
Non Operating Income was 0.015 + -0.053 + 0 + 0 = $-0.04 Mil.
Cash Flow from Operations was -0.62 + -1.182 + -1.622 + -1.786 = $-5.21 Mil.
Total Receivables was $0.14 Mil.
Revenue was 0.02 + 0.098 + 0.111 + 0.1 = $0.33 Mil.
Gross Profit was 0.017 + 0.082 + 0.07 + 0.081 = $0.25 Mil.
Total Current Assets was $4.00 Mil.
Total Assets was $4.86 Mil.
Property, Plant and Equipment(Net PPE) was $0.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.10 Mil.
Selling, General, & Admin. Expense(SGA) was $3.80 Mil.
Total Current Liabilities was $0.22 Mil.
Long-Term Debt & Capital Lease Obligation was $0.00 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)
=(0.357 / 0.386) / (0.137 / 0.329)
=0.92487 / 0.416413
=2.221

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)
=(0.25 / 0.329) / (0.368 / 0.386)
=0.759878 / 0.953368
=0.797

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 - (5.417 + 0.376) / 6.352) / (1 - (4.004 + 0.333) / 4.855)
=0.088004 / 0.106694
=0.8248

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
=0.386 / 0.329
=1.1733

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))
=(0.099 / (0.099 + 0.333)) / (0.141 / (0.141 + 0.376))
=0.229167 / 0.272727
=0.8403

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)
=(2.668 / 0.386) / (3.802 / 0.329)
=6.911917 / 11.556231
=0.5981

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)
=((0.122 + 0.082) / 6.352) / ((0 + 0.223) / 4.855)
=0.032116 / 0.045932
=0.6992

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
=(-5.44 - -0.038 - -5.21) / 6.352
=-0.030227

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.

Lexaria Bioscience has a M-score of -1.37 signals that the company is likely to be a manipulator.


Lexaria Bioscience Beneish M-Score Related Terms

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Lexaria Bioscience (Lexaria Bioscience) Business Description

Traded in Other Exchanges
N/A
Address
740 McCurdy Road, Suite 100, Kelowna, BC, CAN, V1X 2P7
Lexaria Bioscience Corp's patented drug delivery technology, DehydraTECH improves the way active pharmaceutical ingredients enter the bloodstream by promoting more effective oral delivery. DehydraTECH has the ability to increase bio-absorption with cannabinoids and nicotine by 5-10x and, in some instances with cannabinoids by as much as 27x compared to standard industry formulations, reduce the time of onset from 1-2 hours to minutes, and mask unwanted tastes. DehydraTECH has also evidenced an ability to deliver some drugs more effectively across the blood brain barrier. The Company has four reportable segments: Intellectual Property Licensing, B2B Production, Research and Development and Corporate. It earns maximum revenue from Intellectual Property Licensing.
Executives
Catherine C. Turkel director 19900 MACARTHUR BLVD., SUITE 550, IRVINE CA 92612
Gregory Downey officer: Chief Financial Officer 100 - 740 MCCURDY ROAD, KELOWNA A1 V1X 2P7
Christopher Bunka director, 10 percent owner, officer: CEO 1924 BIRKDALE AVE, KELOWNA A1 V1P1R7
Vanessa Carle officer: Secretary 100 - 740 MCCURDY ROAD, KELOWNA A1 V1X 2P7
Reese Albert L Jr director
Brian W. Quigley director 100 740 MCCURDY ROAD, KELOWNA A1 23230
William Edward Mckechnie director 305 MARGARET AVENUE, KITCHENER A6 N2H 6S4
Allan Horst Spissinger officer: CFO 8131 198A STREET, LANGLEY A1 V2Y 1Y6
John Martin Docherty director, 10 percent owner 23 MIKELEN DRIVE, PORT PERRY A6 L9L 1V1
Baljinder Bhullar director, officer: CFO 604 - 700 WEST PENDER, VANCOUVER A1 V6C 1G8
Nicholas W Baxter director 220 SPRINGFIELD ROAD, ABERDEEN, ABERDEENSHIRE, SCOTLAND X0 AB15 6AU
Dustin Arthur Elford director 888 - 609 WEST HASTINGS STREET, VANCOUVER A1 V6B 4W4
Thomas James Ihrke officer: Sr. VP, Business Development 38 KRIER LANE, MOUNT PLEASANT SC 29464
David Demartini director, 10 percent owner 11714 SPRIGGS WAY, HOUSTON TX 77024
Leonard Macmillan director, officer: Vice President - Corp Develop SUITE 302, 125A - 1030 DENMAN STREET, VANCOUVER A1 V6G 2M6