SIMPLICITY ESPRTS&GAMING (WINR) Financials

WINR

FY2022 annual

Revenue $3.6M +128.9% YoY

Net Income -$17.5M -187.8% YoY

Free Cash Flow -$3.0M -87.7% YoY

Operating Cash Flow -$2.7M -65.6% YoY

Source SEC Filings (10-K/10-Q) Latest period Q3 FY2023, ended Feb 28, 2023 Reported Apr 20, 2023 Currency USD FYE May

Newest figures come from the 10-Q for Q3 FY2023, filed Apr 20, 2023. Each column of the statement tables below links to the filing it was taken from.

SIMPLICITY ESPRTS&GAMING (WINR) reported $3.6M in revenue for fiscal year 2022, up 128.9% from the prior fiscal year. This page shows its income statement, balance sheet, cash flow statement, and key financial ratios. View 5 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Rhea AI WINR FY2022 2026-08-30

Sales growth is not translating into operating earnings as overhead, financing costs, and obligations overwhelm gross profit.

Revenue reached $3.6M in FY2022, while operating margin remained near -310% across FY2020–FY2022; additional sales therefore did not bring the business materially closer to breakeven. Interest expense reached $4.5M in FY2022 as net loss widened to -$17.5M, showing financing costs compounded an already loss-making operating model.

Gross margin fell from 50.9% in FY2020 to 29.9% in FY2022 while SG&A more than doubled, leaving less gross profit available to absorb overhead. FY2022 free cash flow was -$3.0M versus operating cash flow of -$2.7M, so capital investment was not the main driver of cash use.

By FY2022, liabilities of $7.7M exceeded assets of $3.8M, leaving equity negative and placing more weight on obligations than owned capital. A 0.1x current ratio and liquidity measure of 0.5 months of reported outflow describe limited current-asset coverage relative to near-term obligations.

Financial Health Signals

Financial health score not available

SIMPLICITY ESPRTS&GAMING does not currently provide enough eligible data for a peer-relative financial health score, so none is published. The signals and metrics below are current.

Altman Z-Score Distress

-20.85

SIMPLICITY ESPRTS&GAMING scores -20.85, below the 1.81 distress threshold. The score is driven primarily by a large market capitalization ($3K) relative to total liabilities ($7.7M). This indicates elevated financial distress risk and warrants close attention to liquidity and debt levels.

Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.

Piotroski F-Score Weak

2/9

SIMPLICITY ESPRTS&GAMING passes 2 of 9 financial strength tests. 1 of 4 profitability signals pass, no leverage/liquidity signals pass (rising debt, declining liquidity, or share dilution), 1 of 2 efficiency signals pass.

Earnings Quality No Cash Backing

N/A

SIMPLICITY ESPRTS&GAMING reported a net loss of $17.5M while operations used $2.7M of cash. With neither figure positive, the ratio between the two carries no quality signal.

Interest Coverage At Risk

N/A

SIMPLICITY ESPRTS&GAMING reported an operating loss of $11.0M against $4.5M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations.

Key Financial Metrics

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Earnings & Revenue

Revenue

$145K

YoY-83.7%

QoQ-17.5%

SIMPLICITY ESPRTS&GAMING generated $145K in revenue in Q3 2023. This represents a decrease of 83.7% from the same quarter a year earlier. Against the prior quarter it is down 17.5%.

EBITDA

-$205K

YoY+76.1%

QoQ+80.5%

SIMPLICITY ESPRTS&GAMING's EBITDA was -$205K in Q3 2023, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 76.1% from the same quarter a year earlier. Against the prior quarter it is up 80.5%.

Net Income

-$775K

YoY+60.3%

SIMPLICITY ESPRTS&GAMING reported -$775K in net income in Q3 2023. This represents an increase of 60.3% from the same quarter a year earlier.

EPS (Diluted)

-$0.04

QoQ-107.5%

SIMPLICITY ESPRTS&GAMING earned -$0.04 per diluted share (EPS) in Q3 2023. Against the prior quarter it is down 107.5%.

Cash & Balance Sheet

Cash & Debt

$29K

YoY-91.1%

QoQ-54.6%

5Y CAGR-43.0%

SIMPLICITY ESPRTS&GAMING held $29K in cash against $5.5M in long-term debt as of Q3 2023.

Shares Outstanding

22M

QoQ0.0%

5Y CAGR+26.1%

SIMPLICITY ESPRTS&GAMING had 22M shares outstanding in Q3 2023. It is unchanged from the prior quarter.

Free Cash Flow

Not reported for Q3 2023.

Dividends Per Share

Not reported for Q3 2023.

Margins & Returns

Gross Margin

68.1%

YoY+28.5pp

QoQ+10.0pp

SIMPLICITY ESPRTS&GAMING's gross margin was 68.1% in Q3 2023, indicating the percentage of revenue retained after direct costs. This is up 28.5 percentage points from the same quarter a year earlier. Against the prior quarter it is up 10.0 percentage points.

Operating Margin

Not shown for Q3 2023: the reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.

Net Margin

Not shown for Q3 2023: the reported ratio is below -100.0% of revenue, so it does not read as a share of revenue.

Return on Equity

Not reported for Q3 2023.

Capital Allocation

None of these metrics is reported for Q3 2023.

WINR Income Statement

Figures in USD, abbreviated K (thousand), M (million), B (billion), T (trillion). Negative values carry a minus sign and red type. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

WINR quarterly income statement

Metric	TTM	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Revenue	$1.6M	$3.6M+128.9%	$1.6M+80.2%	$861K+2167.2%	$38K	N/A
Cost of Revenue	$1.1M	$2.5M+145.7%	$1.0M+140.1%	$423K	N/A	N/A
Gross Profit	$502K	$1.1M+97.2%	$538K+22.5%	$439K+1055.1%	$38K	N/A
SG&A Expenses	$1.3M	$2.0M+45.2%	$1.4M+42.5%	$983K-77.4%	$4.4M+720.5%	$531K
Operating Income	-$11.8M	-$11.0M-129.9%	-$4.8M-75.6%	-$2.7M+36.7%	-$4.3M-713.3%	-$531K
EBITDA	N/A	-$10.7M-150.2%	-$4.3M-73.4%	-$2.5M+41.7%	-$4.2M	N/A
Interest Expense	N/A	$4.5M+222.8%	$1.4M+4210.2%	$32K+39.6%	$23K	N/A
Net Income	N/A	-$17.5M-187.8%	-$6.1M-128.7%	-$2.7M+25.2%	-$3.6M-40131.0%	-$9K
EPS (Basic)	N/A	-$11.03-124.6%	-$4.91	N/A	N/A	N/A

Metric	Q3'2310-Q	Q2'2310-Q	Q1'2310-Q	Q4'2210-Q	Q3'2210-Q	Q2'2210-Q	Q1'2210-Q	Q4'2110-K
Revenue	$145K-83.7%	$175K-79.2%	$344K-62.0%	$915K+46.2%	$889K+107.4%	$844K+184.5%	$905K+351.1%	$626K+288.7%
Cost of Revenue	$46K-91.4%	$73K-84.9%	$94K-84.4%	$863K+33.5%	$537K+188.1%	$485K+326.6%	$607K+797.5%	$647K
Gross Profit	$98K-72.0%	$102K-71.6%	$250K-16.1%	$52K+357.8%	$352K+45.3%	$358K+96.1%	$298K+123.9%	-$20K
SG&A Expenses	$153K-71.1%	$260K-39.8%	$273K-38.4%	$626K+26.3%	$531K+18.0%	$432K+103.2%	$444K+83.5%	$495K+182.0%
Operating Income	-$205K+79.8%	-$1.0M0.0%	-$3.5M-82.4%	-$7.1M-548.0%	-$1.0M+58.5%	-$1.0M-33.8%	-$1.9M-291.2%	-$1.1M+21.6%
EBITDA	-$205K+76.1%	-$1.0M-17.2%	-$3.4M-98.0%	-$7.2M	-$859K+62.3%	-$894K	-$1.7M-343.5%	N/A
Interest Expense	$82K-91.8%	N/A	$847K+28.4%	$1.7M+277.9%	$1.0M+82.9%	$1.1M+368.3%	$660K+328.0%	$452K+3533.1%
Net Income	-$775K+60.3%	N/A	-$4.2M+1.3%	-$9.3M-512.9%	-$2.0M+33.2%	-$2.1M-111.8%	-$4.2M-542.7%	-$1.5M-7.5%
EPS (Basic)	-$0.04+96.7%	$0.93+166.9%	-$1.75+39.4%	-$5.70	-$1.21	-$1.39	-$2.89	N/A
EPS (Diluted)	-$0.04	$0.53+138.1%	N/A	N/A	-$1.21	-$1.39	N/A	N/A
Diluted Shares (Avg)	19M	11M+588.7%	N/A	N/A	2M	2M	N/A	N/A

Not reported in any period shown, so not listed: R&D Expenses, Income Tax.

WINR Balance Sheet

WINR quarterly balance sheet

Metric	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Total Assets	$3.8M-62.5%	$10.2M+18.8%	$8.6M+10.8%	$7.8M-85.5%	$53.4M
Current Assets	$507K-39.2%	$834K+169.7%	$309K-79.9%	$1.5M+233.9%	$461K
Cash & Equivalents	$103K-75.0%	$414K+158.6%	$160K-89.6%	$1.5M+236.2%	$458K
Short-Term Investments	$0	$0	$0	$0	$0
Inventory	$115K-44.3%	$207K+1211.0%	$16K	N/A	N/A
Accounts Receivable	$61K-62.2%	$160K+25.4%	$128K	N/A	N/A
Long-Term Investments	$0	$0	$0	$0	$0
Goodwill	$1.5M-71.6%	$5.2M+0.5%	$5.2M+15.7%	$4.5M	N/A
Total Liabilities	$7.7M+36.6%	$5.6M+52.8%	$3.7M+94.9%	$1.9M-96.1%	$48.4M
Current Liabilities	$4.8M+13.6%	$4.2M+42.5%	$3.0M+63.5%	$1.8M+641.3%	$245K
Non-Current Liabilities	$2.9M+106.9%	$1.4M+96.1%	$705K+923.3%	$69K-99.9%	$48.1M
Long-Term Debt	$5.9M+164.9%	$2.2M0.0%	$2.2M+102.2%	$1.1M	N/A
Total Equity	-$3.8M-185.3%	$4.4M-10.5%	$4.9M-15.9%	$5.9M+17.4%	$5.0M
Retained Earnings	-$29.8M-142.7%	-$12.3M-98.4%	-$6.2M-73.3%	-$3.6M-37395.3%	-$10K

Metric	Q3'2310-Q	Q2'2310-Q	Q1'2310-Q	Q4'2210-Q	Q3'2210-Q	Q2'2210-Q	Q1'2210-Q	Q4'2110-K
Total Assets	$282K-97.4%	$400K-96.3%	$1.1M-89.4%	$3.8M-62.5%	$10.7M+4.4%	$10.8M+3.6%	$10.5M+14.6%	$10.2M+18.8%
Current Assets	$254K-79.3%	$329K-77.4%	$535K-53.5%	$507K-39.2%	$1.2M+32.1%	$1.5M+56.1%	$1.2M+70.5%	$834K+169.7%
Cash & Equivalents	$29K-91.1%	$64K-92.3%	$98K-85.5%	$103K-75.0%	$328K-42.7%	$832K+53.2%	$674K+35.1%	$414K+158.6%
Short-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Inventory	N/A	N/A	$39K-86.7%	$115K-44.3%	$312K+77.4%	$365K+151.1%	$297K+838.1%	$207K+1211.0%
Accounts Receivable	$29K-52.2%	$16K-84.5%	$5K-96.5%	$61K-62.2%	$61K-38.1%	$105K-20.4%	$139K+13.9%	$160K+25.4%
Long-Term Investments	$0	$0	$0	$0	$0	$0	$0	$0
Goodwill	N/A	N/A	N/A	$1.5M-71.6%	$5.2M0.0%	$5.2M0.0%	$5.2M0.0%	$5.2M+0.5%
Total Liabilities	$9.7M+46.8%	$12.0M+147.8%	$8.4M+76.6%	$7.7M+36.6%	$6.6M+29.8%	$4.8M-2.0%	$4.8M+41.5%	$5.6M+52.8%
Current Liabilities	$9.4M+150.4%	$10.4M+312.1%	$6.1M+95.0%	$4.8M+13.6%	$3.8M0.0%	$2.5M-29.8%	$3.1M+14.9%	$4.2M+42.5%
Non-Current Liabilities	$121K-95.8%	$1.4M-38.5%	$2.1M+27.2%	$2.9M+106.9%	$2.8M+114.6%	$2.3M+72.3%	$1.7M+149.7%	$1.4M+96.1%
Long-Term Debt	$5.5M+72.4%	$5.7M+182.9%	$5.6M+2290.6%	$5.9M+164.9%	$3.2M+135.0%	$2.0M-4.5%	$235K	$2.2M0.0%
Total Equity	-$9.4M-333.5%	-$11.6M-298.1%	-$7.3M-230.7%	-$3.8M-185.3%	$4.0M-19.5%	$5.9M+11.2%	$5.6M+0.3%	$4.4M-10.5%
Retained Earnings	-$29.2M-41.9%	-$28.4M-52.7%	-$34.0M-106.0%	-$29.8M-142.7%	-$20.6M-90.9%	-$18.6M-137.2%	-$16.5M-140.9%	-$12.3M-98.4%

WINR Cash Flow Statement

WINR quarterly cash flow statement

Metric	TTM	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Operating Cash Flow	-$886K	-$2.7M-65.6%	-$1.6M-6.2%	-$1.5M-9.2%	-$1.4M-196.8%	-$470K
Depreciation & Amortization	N/A	$340K-35.3%	$525K+95.2%	$269K+195.7%	$91K	N/A
Stock-Based Compensation	N/A	$418K-75.3%	$1.7M+104.1%	$828K	N/A	N/A
Capital Expenditures	N/A	$361K+18426.7%	$2K-98.8%	$163K+33.4%	$123K	N/A
Free Cash Flow	N/A	-$3.0M-87.7%	-$1.6M+4.0%	-$1.7M-11.1%	-$1.5M	N/A
Investing Cash Flow	$103K	-$515K-239.0%	-$152K-10.7%	-$137K+29.9%	-$196K+99.6%	-$52.4M
Financing Cash Flow	$484K	$2.9M+42.5%	$2.0M+621.3%	$281K-89.5%	$2.7M-95.0%	$53.3M

Metric	Q3'2310-Q	Q2'2310-Q	Q1'2310-Q	Q4'2210-Q	Q3'2210-Q	Q2'2210-Q	Q1'2210-Q	Q4'2110-K
Operating Cash Flow	-$166K+55.2%	-$343K+70.5%	-$174K+81.5%	-$202K+74.7%	-$371K+22.0%	-$1.2M-969.1%	-$944K-304.3%	-$800K-124.0%
Depreciation & Amortization	$132-99.9%	$2K-99.0%	$18K-88.6%	$94K-41.9%	$154K-2.3%	$155K	$159K+70.9%	$162K
Stock-Based Compensation	$87K-88.8%	$230K-72.8%	$90K-89.5%	N/A	$778K-61.9%	$846K+131.0%	$851K+466.8%	N/A
Capital Expenditures	N/A	N/A	N/A	$8K+19.4%	$339K+4748.9%	-$8K	$21K	-$7K
Free Cash Flow	N/A	N/A	N/A	-$210K+73.9%	-$711K-47.1%	-$1.2M	-$965K	-$807K-126.0%
Investing Cash Flow	$35K+110.4%	$155K+1919.3%	$76K+460.2%	-$162K-13.6%	-$339K-4748.9%	$8K	-$21K	-$143K-18527.8%
Financing Cash Flow	$96K-53.4%	$155K-88.2%	$93K-92.4%	$140K-82.1%	$206K-57.7%	$1.3M+627.7%	$1.2M+114.1%	$785K+179.6%

Not reported in any period shown, so not listed: Dividends Paid, Share Buybacks.

WINR Financial Ratios

Margins and returns are percentages; the remaining ratios are unitless multiples. Each change compares the year with the year before it, and each quarter with the same quarter a year earlier.

WINR quarterly financial ratios

Metric	FY2210-K	FY2110-K	FY2010-K	FY1910-K	FY1810-K
Gross Margin	29.8%-4.8pp	34.6%-16.3pp	50.9%-49.1pp	100.0%	N/A
Operating Margin	-310.5%	-309.1%	-317.2%	-11357.3%	N/A
Net Margin	-493.9%	-392.9%	-309.5%	-9383.5%	N/A
Return on Equity	N/A	-138.0%-84.0pp	-54.0%+6.8pp	-60.8%-60.6pp	-0.2%
Return on Assets	-458.5%-398.8pp	-59.7%-28.7pp	-31.0%+14.9pp	-46.0%-46.0pp	0.0%
Current Ratio	0.11-0.1x	0.20+0.1x	0.10-0.7x	0.85-1.0x	1.88
Debt-to-Equity	N/A	0.50+0.1x	0.45+0.3x	0.19-9.5x	9.67
Asset Turnover	0.93+0.8x	0.15+0.1x	0.10+0.1x	0.00	N/A
FCF Margin	-85.6%	-104.4%	-195.8%	-3994.7%	N/A

Metric	Q3'2310-Q	Q2'2310-Q	Q1'2310-Q	Q4'2210-Q	Q3'2210-Q	Q2'2210-Q	Q1'2210-Q	Q4'2110-K
Gross Margin	68.1%+28.5pp	58.1%+15.6pp	72.5%+39.6pp	5.7%+9.0pp	39.6%-16.9pp	42.5%-19.1pp	32.9%-33.4pp	-3.2%
Operating Margin	-141.7%	-598.5%	-1006.0%	-772.3%	-113.9%	-124.4%	-209.8%	-174.2%
Net Margin	-536.2%	N/A	-1208.1%	-1010.6%	-220.0%	-252.3%	-465.4%	-241.0%
Return on Equity	N/A	N/A	N/A	N/A	-48.4%+10.0pp	-36.3%-17.3pp	-75.4%-63.7pp	-34.2%-5.7pp
Return on Assets	-275.0%-256.8pp	N/A	-373.8%-333.6pp	-241.8%-227.0pp	-18.2%+10.3pp	-19.7%-10.1pp	-40.3%-33.1pp	-14.8%+1.5pp
Current Ratio	0.03-0.3x	0.03-0.5x	0.09-0.3x	0.11-0.1x	0.32+0.1x	0.58+0.3x	0.37+0.1x	0.20+0.1x
Debt-to-Equity	N/A	N/A	N/A	N/A	0.80+0.5x	0.34-0.1x	0.04-0.6x	0.50+0.1x
Asset Turnover	0.51+0.4x	0.44+0.4x	0.31+0.2x	0.24+0.2x	0.080.0x	0.080.0x	0.09+0.1x	0.060.0x
FCF Margin	N/A	N/A	N/A	-23.0%	-80.0%	-138.6%	-106.6%	-128.8%

Reported as filed but not readable as a share of revenue in the periods where the ratio runs further from zero than a revenue base allows; no change figure is given where either compared period is one of those: Operating Margin, Net Margin, FCF Margin.

Note: Shareholder equity is negative (-$3.8M), which causes debt-to-equity and return on equity ratios to appear negative or not meaningful. This can occur from accumulated losses or large share buyback programs.

Note: The current ratio is below 1.0 (0.11), indicating current liabilities exceed current assets, which may suggest potential short-term liquidity concerns.

Similar Companies

Newest fiscal year on record for each company. The health score is the peer-relative Financial Health Score for that year; a dash means no score is published for it.

Company	Fiscal year	Revenue	Net income	Net margin	Market cap	Health score
SIMPLICITY ESPRTS&GAMING WINR	FY2022	$3.6M	-$17.5M	N/A	$3K	—
VIRTUAL INTERACTIVE TECH VRVR	FY2023	$130K	N/A	N/A	$4K	—
MOBILE GLOBAL ESPORTS INC MGAM	FY2025	$4K	-$2.3M	N/A	$862K	—

Where SIMPLICITY ESPRTS&GAMING Ranks

Frequently Asked Questions

What is SIMPLICITY ESPRTS&GAMING's annual revenue?

SIMPLICITY ESPRTS&GAMING (WINR) reported $3.6M in total revenue for fiscal year 2022. This represents a 128.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is SIMPLICITY ESPRTS&GAMING's revenue growing?

SIMPLICITY ESPRTS&GAMING (WINR) revenue grew by 128.9% year-over-year, from $1.6M to $3.6M in fiscal year 2022.

Is SIMPLICITY ESPRTS&GAMING profitable?

No, SIMPLICITY ESPRTS&GAMING (WINR) reported a net income of -$17.5M in fiscal year 2022.

What is SIMPLICITY ESPRTS&GAMING's EBITDA?

SIMPLICITY ESPRTS&GAMING (WINR) had EBITDA of -$10.7M in fiscal year 2022, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does SIMPLICITY ESPRTS&GAMING have?

As of fiscal year 2022, SIMPLICITY ESPRTS&GAMING (WINR) had $103K in cash and equivalents against $5.9M in long-term debt.

What is SIMPLICITY ESPRTS&GAMING's gross margin?

SIMPLICITY ESPRTS&GAMING (WINR) had a gross margin of 29.8% in fiscal year 2022, indicating the percentage of revenue retained after direct costs of goods sold.

What is SIMPLICITY ESPRTS&GAMING's free cash flow?

SIMPLICITY ESPRTS&GAMING (WINR) recorded an outflow of $3.0M in free cash flow during fiscal year 2022. This represents a -87.7% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is SIMPLICITY ESPRTS&GAMING's operating cash flow?

SIMPLICITY ESPRTS&GAMING (WINR) recorded an outflow of $2.7M in operating cash flow during fiscal year 2022, representing cash used by core business activities.

What are SIMPLICITY ESPRTS&GAMING's total assets?

SIMPLICITY ESPRTS&GAMING (WINR) had $3.8M in total assets as of fiscal year 2022, including both current and long-term assets.

What are SIMPLICITY ESPRTS&GAMING's capital expenditures?

SIMPLICITY ESPRTS&GAMING (WINR) invested $361K in capital expenditures during fiscal year 2022, funding long-term assets and infrastructure.

How many shares does SIMPLICITY ESPRTS&GAMING have outstanding?

SIMPLICITY ESPRTS&GAMING (WINR) had 3M shares outstanding as of fiscal year 2022.

What is SIMPLICITY ESPRTS&GAMING's current ratio?

SIMPLICITY ESPRTS&GAMING (WINR) had a current ratio of 0.11 as of fiscal year 2022, which is below 1.0, which may suggest potential liquidity concerns.

What is SIMPLICITY ESPRTS&GAMING's return on assets (ROA)?

SIMPLICITY ESPRTS&GAMING (WINR) had a return on assets of -458.5% for fiscal year 2022, measuring how efficiently the company uses its assets to generate profit.

How does SIMPLICITY ESPRTS&GAMING's liquidity compare with its operating cash outflow?

At the end of fiscal year 2022, SIMPLICITY ESPRTS&GAMING (WINR) held $103K in cash, cash equivalents and investments, and reported an operating cash outflow of $2.7M over that year. Dividing the one by the other, the reported balance equals about 0 months of the outflow reported that year. This is arithmetic over figures already filed, not a projection: it assumes nothing about future spending, financing or operations.

Why is SIMPLICITY ESPRTS&GAMING's debt-to-equity ratio negative or not reported?

SIMPLICITY ESPRTS&GAMING (WINR) has negative shareholder equity of -$3.8M as of fiscal year 2022, so no debt-to-equity ratio is reported: dividing debt by equity that is not positive produces a number that cannot be read as leverage. This can occur when accumulated losses exceed invested capital, or after large share buyback programs. Other solvency metrics like the current ratio or interest coverage may be more informative.

What is SIMPLICITY ESPRTS&GAMING's Altman Z-Score?

SIMPLICITY ESPRTS&GAMING (WINR) has an Altman Z-Score of -20.85, placing it in the Distress Zone (elevated bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is SIMPLICITY ESPRTS&GAMING's Piotroski F-Score?

SIMPLICITY ESPRTS&GAMING (WINR) has a Piotroski F-Score of 2 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are SIMPLICITY ESPRTS&GAMING's earnings high quality?

SIMPLICITY ESPRTS&GAMING (WINR) reported a net loss of $17.5M while operations used $2.7M of cash. With neither figure positive, the ratio between the two carries no quality signal. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can SIMPLICITY ESPRTS&GAMING cover its interest payments?

SIMPLICITY ESPRTS&GAMING (WINR) reported an operating loss of $11.0M against $4.5M in interest expense. There is no operating profit to cover interest, so interest must be met from cash reserves or from financing rather than from operations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.