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Walt Disney Co (NYSE:DIS)
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.

Walt Disney Co has a M-score of signals that the company is a manipulator.

DIS' s 10-Year Beneish M-Score Range
Min: -2.86   Max: -1.04
Current: 0

-2.86
-1.04

During the past 13 years, the highest Beneish M-Score of Walt Disney Co was -1.04. The lowest was -2.86. And the median was -2.46.


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 Walt Disney 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 (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $8,013 Mil.
Revenue was 12309 + 11568 + 11578 + 10554 = $46,009 Mil.
Gross Profit was 2665 + 2159 + 3004 + 2195 = $10,023 Mil.
Total Current Assets was $15,763 Mil.
Total Assets was $83,166 Mil.
Property, Plant and Equipment(Net PPE) was $22,567 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,239 Mil.
Selling, General & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $15,696 Mil.
Long-Term Debt was $11,714 Mil.
Net Income was 1840 + 1394 + 1847 + 1513 = $6,594 Mil.
Non Operating Income was 245 + 184 + 232 + 195 = $856 Mil.
Cash Flow from Operations was 1212 + 2735 + 3413 + 2160 = $9,520 Mil.
Accounts Receivable was $7,315 Mil.
Revenue was 11341 + 10782 + 11088 + 9629 = $42,840 Mil.
Gross Profit was 2092 + 2024 + 2960 + 1687 = $8,763 Mil.
Total Current Assets was $14,322 Mil.
Total Assets was $80,642 Mil.
Property, Plant and Equipment(Net PPE) was $21,671 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,016 Mil.
Selling, General & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $14,498 Mil.
Long-Term Debt was $19,920 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)
=(8013 / 46009) / (7315 / 42840)
=0.17416158 / 0.17075163
=

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)
=(2159 / 42840) / (2665 / 46009)
=0.20455182 / 0.21784868
=

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 - (15763 + 22567) / 83166) / (1 - (14322 + 21671) / 80642)
=0.53911454 / 0.5536693
=

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
=46009 / 42840
=

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))
=(2016 / (2016 + 21671)) / (2239 / (2239 + 22567))
=0.08510998 / 0.09026042
=

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)
=(0 / 46009) / (0 / 42840)
=0 / 0
=

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)
=((11714 + 15696) / 83166) / ((19920 + 14498) / 80642)
=0.3295818 / 0.42679993
=

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
=(6594 - 856 - 9520) / 83166
=-0.0455

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.

Walt Disney 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.

Walt Disney Co Annual Data

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score

Walt Disney Co Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI
GMI
AQI
SGI
DEPI
SGAI
LVGI
TATA
M-score
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