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Majesco Entertainment Co (NAS:COOL)
Beneish M-Score
-3.88 (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 -3.88 suggests that the company is not a manipulator.

COOL' s 10-Year Beneish M-Score Range
Min: -9.59   Max: 1.84
Current: -3.88

-9.59
1.84

During the past 13 years, the highest Beneish M-Score of Majesco Entertainment Co was 1.84. The lowest was -9.59. 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 * 4.7032+0.528 * 1.5508+0.404 * 0+0.892 * 0.7271+0.115 * 0.9088
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2322+4.679 * -0.933-0.327 * 1.1029
=-3.88

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

This Year (Oct14) TTM:Last Year (Oct13) TTM:
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.
Net Income was -5.373 + -2.727 + -3.585 + -4.512 = $-16.20 Mil.
Non Operating Income was -1.745 + -0.335 + -0.166 + 0.247 = $-2.00 Mil.
Cash Flow from Operations was -3.394 + 0.222 + -1.36 + 1.023 = $-3.51 Mil.
Accounts Receivable was $0.47 Mil.
Revenue was 10.077 + 3.998 + 9.72 + 23.472 = $47.27 Mil.
Gross Profit was 0.746 + 1.235 + 3.035 + 7.152 = $12.17 Mil.
Total Current Assets was $33.26 Mil.
Total Assets was $37.65 Mil.
Property, Plant and Equipment(Net PPE) was $0.82 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.84 Mil.
Selling, General & Admin. Expense(SGA) was $17.81 Mil.
Total Current Liabilities was $17.60 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)
=(1.597 / 34.368) / (0.467 / 47.267)
=0.04646764 / 0.00988004
=4.7032

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)
=(1.141 / 47.267) / (1.114 / 34.368)
=0.25743119 / 0.16599744
=1.5508

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 - (11.258 + 0.198) / 11.456) / (1 - (33.263 + 0.817) / 37.649)
=0 / 0.09479667
=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
=34.368 / 47.267
=0.7271

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))
=(6.841 / (6.841 + 0.817)) / (11.44 / (11.44 + 0.198))
=0.89331418 / 0.98298677
=0.9088

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)
=(15.953 / 34.368) / (17.806 / 47.267)
=0.4641818 / 0.37671102
=1.2322

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 + 5.905) / 11.456) / ((0 + 17.596) / 37.649)
=0.51545042 / 0.46736965
=1.1029

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
=(-16.197 - -1.999 - -3.509) / 11.456
=-0.933

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 -3.88 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

Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14Oct14
DSRI 0.92045.02570.56860.2743.23740.3910.22081.33950.88074.7032
GMI 1.11071.10341.10671.24791.28841.27781.67951.94231.8211.5508
AQI 0.58842.98914.58955.08275.31587.947810.007110.50535.31170
SGI 1.05931.05580.62640.48770.48720.35730.51050.56970.59860.7271
DEPI 0.89720.89540.99111.01291.01811.06011.010.9880.9610.9088
SGAI 1.16591.13581.4831.48891.36021.64831.34951.35481.36221.2322
LVGI 1.04780.77990.83480.90320.92091.15431.03661.1881.41231.1029
TATA -0.1121-0.0692-0.2771-0.1445-0.098-0.2135-0.1144-0.1859-0.5184-0.933
M-score -3.191.84-3.03-2.550.52-1.81-0.240.79-3.40-3.88
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