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Majesco Entertainment Co (NAS:COOL)
Beneish M-Score
-7.10 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Majesco Entertainment Co has a M-score of -7.10 suggests that the company is not a manipulator.

COOL' s 10-Year Beneish M-Score Range
Min: -15.56   Max: 24.21
Current: -7.1

-15.56
24.21

During the past 13 years, the highest Beneish M-Score of Majesco Entertainment Co was 24.21. The lowest was -15.56. And the median was -2.22.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Majesco Entertainment Co 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 * 1.4369+0.528 * 0.451+0.404 * 0+0.892 * 0.3661+0.115 * 0.9478
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.869+4.679 * -0.7609-0.327 * 1.1539
=-7.10

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Apr15) TTM:Last Year (Apr14) TTM:
Accounts Receivable was $0.45 Mil.
Revenue was 1.705 + 3.471 + 6.283 + 2.911 = $14.37 Mil.
Gross Profit was 0.797 + 1.357 + 1.114 + 1.141 = $4.41 Mil.
Total Current Assets was $9.99 Mil.
Total Assets was $10.05 Mil.
Property, Plant and Equipment(Net PPE) was $0.06 Mil.
Depreciation, Depletion and Amortization(DDA) was $3.00 Mil.
Selling, General & Admin. Expense(SGA) was $11.25 Mil.
Total Current Liabilities was $4.41 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.598 + -1.156 + -5.373 + -2.727 = $-10.85 Mil.
Non Operating Income was 1.289 + -0.128 + -1.745 + -0.335 = $-0.92 Mil.
Cash Flow from Operations was -1.4 + 2.282 + -3.394 + 0.222 = $-2.29 Mil.
Accounts Receivable was $0.86 Mil.
Revenue was 3.24 + 21.934 + 10.077 + 3.998 = $39.25 Mil.
Gross Profit was 0.061 + 3.389 + 0.746 + 1.235 = $5.43 Mil.
Total Current Assets was $16.26 Mil.
Total Assets was $20.48 Mil.
Property, Plant and Equipment(Net PPE) was $0.96 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.84 Mil.
Selling, General & Admin. Expense(SGA) was $16.44 Mil.
Total Current Liabilities was $7.78 Mil.
Long-Term Debt was $0.00 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(0.454 / 14.37) / (0.863 / 39.249)
=0.0315936 / 0.02198782
=1.4369

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)
=(1.357 / 39.249) / (0.797 / 14.37)
=0.13837295 / 0.30681976
=0.451

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (9.991 + 0.056) / 10.047) / (1 - (16.259 + 0.96) / 20.479)
=0 / 0.15918746
=0

4. SGI = Sales Growth Index

Ratio of sales 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
=14.37 / 39.249
=0.3661

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(12.838 / (12.838 + 0.96)) / (2.995 / (2.995 + 0.056))
=0.9304247 / 0.98164536
=0.9478

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(11.251 / 14.37) / (16.442 / 39.249)
=0.78295059 / 0.41891513
=1.869

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0 + 4.406) / 10.047) / ((0 + 7.783) / 20.479)
=0.43853887 / 0.38004785
=1.1539

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
=(-10.854 - -0.919 - -2.29) / 10.047
=-0.7609

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Majesco Entertainment Co has a M-score of -7.10 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Majesco Entertainment Co Annual Data

Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14
DSRI 0.13284.46750.28253.61020.51690.93760.21865.02570.3914.7032
GMI -12.3813-0.0780.87660.93841.490.9980.66961.10341.27781.5508
AQI 0.03811.02278.41130.08850.82620.78971.73662.98917.94780
SGI 0.49361.11670.76431.25351.47840.80091.65621.05580.35730.7271
DEPI 0.99581.02371.09930.93230.94961.04321.09470.89541.06010.9088
SGAI 3.65060.56550.93260.9180.86240.89210.91931.13571.64831.2322
LVGI 1.28471.04560.85080.91560.82421.04950.87210.77991.15431.1029
TATA 0.4421-0.5307-0.11680.3097-0.00690.05260.005-0.0692-0.2144-0.8899
M-score -9.66-2.17-0.901.23-2.27-2.55-2.401.84-1.82-3.68

Majesco Entertainment Co Quarterly Data

Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15
DSRI 0.56860.2743.23740.3910.22081.33950.88074.70323.10741.4369
GMI 1.10671.24791.28841.27781.67951.94231.8211.55080.79590.451
AQI 4.58955.08275.31587.947810.007110.50535.31170-00
SGI 0.62640.48770.48720.35730.51050.56970.59860.72710.34780.3661
DEPI 0.99111.01291.01811.06011.010.9880.9610.90880.93270.9478
SGAI 1.4831.48891.36021.64831.34951.35481.36221.23222.01241.869
LVGI 0.83480.90320.92091.15431.03661.1881.41231.10291.3041.1539
TATA -0.2771-0.1445-0.098-0.2135-0.0949-0.1618-0.4911-0.8899-0.6726-0.7609
M-score -3.03-2.550.52-1.81-0.150.91-3.27-3.68-5.06-7.10
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