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Majesco Entertainment Co (NAS:COOL)
Beneish M-Score
0.00 (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 signals that the company is a manipulator.

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 -2.27.


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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

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

This Year (Oct15) TTM:Last Year (Oct14) TTM:
Accounts Receivable was $0.28 Mil.
Revenue was 0.426 + 1.091 + 1.705 + 3.471 = $6.69 Mil.
Gross Profit was 0.392 + 0.724 + 0.797 + 1.357 = $3.27 Mil.
Total Current Assets was $17.62 Mil.
Total Assets was $17.66 Mil.
Property, Plant and Equipment(Net PPE) was $0.05 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.49 Mil.
Selling, General & Admin. Expense(SGA) was $6.96 Mil.
Total Current Liabilities was $2.00 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -0.79 + -0.265 + -1.598 + -1.156 = $-3.81 Mil.
Non Operating Income was 0.069 + 0.465 + 1.289 + -0.128 = $1.70 Mil.
Cash Flow from Operations was -0.758 + -1.738 + -1.4 + 2.282 = $-1.61 Mil.
Accounts Receivable was $1.60 Mil.
Revenue was 6.283 + 2.911 + 3.24 + 21.934 = $34.37 Mil.
Gross Profit was 1.114 + 1.141 + 0.061 + 3.389 = $5.71 Mil.
Total Current Assets was $11.26 Mil.
Total Assets was $11.46 Mil.
Property, Plant and Equipment(Net PPE) was $0.20 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.44 Mil.
Selling, General & Admin. Expense(SGA) was $15.95 Mil.
Total Current Liabilities was $5.91 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)
=(0.283 / 6.693) / (1.597 / 34.368)
=0.04228298 / 0.04646764
=

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)
=(0.724 / 34.368) / (0.392 / 6.693)
=0.16599744 / 0.48857015
=

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 - (17.616 + 0.045) / 17.661) / (1 - (11.258 + 0.198) / 11.456)
=0 / 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
=6.693 / 34.368
=

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))
=(11.44 / (11.44 + 0.198)) / (0.493 / (0.493 + 0.045))
=0.98298677 / 0.91635688
=

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)
=(6.961 / 6.693) / (15.953 / 34.368)
=1.04004183 / 0.4641818
=

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 + 2.004) / 17.661) / ((0 + 5.905) / 11.456)
=0.11347036 / 0.51545042
=

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
=(-3.809 - 1.695 - -1.614) / 17.661
=-0.2203

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 signals that the company is likely to 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

Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13Oct14Oct15
DSRI 4.46750.28253.61020.51690.93760.21865.02570.3914.7032
GMI -0.0780.87660.93841.490.9980.66961.10341.27781.5508
AQI 1.02278.41130.08850.82620.78971.73662.98917.94780
SGI 1.11670.76431.25351.47840.80091.65621.05580.35730.7271
DEPI 1.02371.09930.93230.94961.04321.09470.89541.06010.9088
SGAI 0.56550.93260.9180.86240.89210.91931.13571.64831.2322
LVGI 1.04560.85080.91560.82421.04950.87210.77991.15431.1029
TATA -0.5307-0.11680.3097-0.00690.05260.005-0.0692-0.2144-0.8899
M-score -2.17-0.901.23-2.27-2.55-2.401.84-1.82-3.68

Majesco Entertainment Co Quarterly Data

Jul13Oct13Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15
DSRI 3.23740.3910.22081.33950.88074.70323.10741.43692.5601
GMI 1.28841.27781.67951.94231.8211.55080.79590.4510.4397
AQI 5.31587.947810.007110.50535.31170-000
SGI 0.48720.35730.51050.56970.59860.72710.34780.36610.3289
DEPI 1.01811.06011.010.9880.9610.90880.93270.94780.9777
SGAI 1.36021.64831.34951.35481.36221.23222.01241.8691.8448
LVGI 0.92091.15431.03661.1881.41231.10291.3041.15390.6265
TATA -0.098-0.2135-0.0949-0.1618-0.4911-0.8899-0.6726-0.7609-0.4303
M-score 0.52-1.81-0.150.91-3.27-3.68-5.06-7.10-4.38
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