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Majesco Entertainment Co (NAS:COOL)
Beneish M-Score
-0.05 (As of Today)

Warning Sign:

Beneish M-Score -0.05 higher than -2.22, which implies that it might have manipulated its financial results.

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.

COOL' s Beneish M-Score Range Over the Past 10 Years
Min: -2660.06   Max: 24.3
Current: -0.05

-2660.06
24.3

During the past 13 years, the highest Beneish M-Score of Majesco Entertainment Co was 24.30. The lowest was -2660.06. And the median was -2.29.


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 (Apr16) TTM:Last Year (Apr15) TTM:
Accounts Receivable was $0.42 Mil.
Revenue was 0.412 + 0.591 + 0.426 + 1.091 = $2.52 Mil.
Gross Profit was 0.287 + 0.533 + 0.392 + 0.724 = $1.94 Mil.
Total Current Assets was $8.02 Mil.
Total Assets was $8.06 Mil.
Property, Plant and Equipment(Net PPE) was $0.03 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.15 Mil.
Selling, General & Admin. Expense(SGA) was $5.07 Mil.
Total Current Liabilities was $1.92 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -1.101 + -0.647 + -0.79 + -0.265 = $-2.80 Mil.
Non Operating Income was -0.02 + 0 + 0.069 + 0.465 = $0.51 Mil.
Cash Flow from Operations was -0.611 + -0.398 + -0.758 + -1.738 = $-3.51 Mil.
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.



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)
=(0.415 / 2.52) / (0.454 / 14.37)
=0.16468254 / 0.0315936
=

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)
=(4.409 / 14.37) / (1.936 / 2.52)
=0.30681976 / 0.76825397
=

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 - (8.024 + 0.031) / 8.055) / (1 - (9.991 + 0.056) / 10.047)
=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
=2.52 / 14.37
=

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))
=(2.995 / (2.995 + 0.056)) / (0.145 / (0.145 + 0.031))
=0.98164536 / 0.82386364
=

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)
=(5.072 / 2.52) / (11.251 / 14.37)
=2.01269841 / 0.78295059
=

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 + 1.915) / 8.055) / ((0 + 4.406) / 10.047)
=0.23774053 / 0.43853887
=

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
=(-2.803 - 0.514 - -3.505) / 8.055
=0.0233

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 -0.3723-0.28290.2036-0.00690.05260.005-0.0692-0.2144-0.8899
M-score -1.43-1.670.73-2.27-2.55-2.401.84-1.82-3.68

Majesco Entertainment Co Quarterly Data

Jan14Apr14Jul14Oct14Jan15Apr15Jul15Oct15Jan16Apr16
DSRI 0.22081.33950.88074.70323.10741.43692.56012.6075.2125
GMI 1.67951.94231.8211.55080.79590.4510.43970.360.3994
AQI 10.007110.50535.31170-00000
SGI 0.51050.56970.59860.72710.34780.36610.32890.23970.1754
DEPI 1.010.9880.9610.90880.93270.94780.97771.31441.1915
SGAI 1.34951.35481.36221.23222.01241.8691.84482.02472.5707
LVGI 1.03661.1881.41231.10291.3041.15390.62650.51970.5421
TATA -0.0949-0.1618-0.4911-0.8899-0.6726-0.6088-0.26690.09210.0233
M-score -0.150.91-3.27-3.68-5.06-6.39-3.62-1.97-0.05
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