Guild Esports (LSE:GILD) Beneish M-Score : -5.05 (As of May. 20, 2024)

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What is Guild Esports Beneish M-Score?

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

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -5.05 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Guild Esports's Beneish M-Score or its related term are showing as below:

LSE:GILD' s Beneish M-Score Range Over the Past 10 Years
Min: -5.05 Med: -2.97 Max: -0.89
Current: -5.05

During the past 4 years, the highest Beneish M-Score of Guild Esports was -0.89. The lowest was -5.05. And the median was -2.97.

Guild Esports Beneish M-Score Historical Data

The historical data trend for Guild Esports's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Guild Esports Beneish M-Score Chart

Guild Esports Annual Data

Trend

Sep20

Sep21

Sep22

Sep23

Beneish M-Score

-0.89

-5.05

Guild Esports Semi-Annual Data
	Mar20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23
Beneish M-Score	Get a 7-Day Free Trial			-	-	-0.89	-	-5.05

Competitive Comparison of Guild Esports's Beneish M-Score

For the Entertainment subindustry, Guild Esports's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Guild Esports's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Guild Esports's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Guild Esports's Beneish M-Score falls into.

Guild Esports Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Guild Esports for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.113

0.528 * 0.8611

0.404 * 1.6465

0.892 * 1.2407

0.115 * 0.5009

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4562

4.679 * -0.438559

0.327 * 1.4388

-5.05

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was £0.21 Mil.
Revenue was £5.53 Mil.
Gross Profit was £3.99 Mil.
Total Current Assets was £0.78 Mil.
Total Assets was £5.55 Mil.
Property, Plant and Equipment(Net PPE) was £4.50 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.84 Mil.
Selling, General, & Admin. Expense(SGA) was £3.92 Mil.
Total Current Liabilities was £2.65 Mil.
Long-Term Debt & Capital Lease Obligation was £2.78 Mil.
Net Income was £-4.50 Mil.
Gross Profit was £0.00 Mil.
Cash Flow from Operations was £-2.06 Mil.

Total Receivables was £1.52 Mil.
Revenue was £4.45 Mil.
Gross Profit was £2.77 Mil.
Total Current Assets was £6.78 Mil.
Total Assets was £12.15 Mil.
Property, Plant and Equipment(Net PPE) was £5.01 Mil.
Depreciation, Depletion and Amortization(DDA) was £0.43 Mil.
Selling, General, & Admin. Expense(SGA) was £6.92 Mil.
Total Current Liabilities was £5.07 Mil.
Long-Term Debt & Capital Lease Obligation was £3.20 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(0.213 / 5.525)	/	(1.519 / 4.453)
	=	0.038552	/	0.341118
	=	0.113

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)
	=	(2.767 / 4.453)	/	(3.987 / 5.525)
	=	0.621379	/	0.721629
	=	0.8611

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (0.779 + 4.498) / 5.55)	/	(1 - (6.779 + 5.009) / 12.151)
	=	0.049189	/	0.029874
	=	1.6465

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	5.525	/	4.453
	=	1.2407

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(0.43 / (0.43 + 5.009))	/	(0.843 / (0.843 + 4.498))
	=	0.079059	/	0.157836
	=	0.5009

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(3.918 / 5.525)	/	(6.922 / 4.453)
	=	0.70914	/	1.554458
	=	0.4562

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((2.781 + 2.654) / 5.55)	/	((3.204 + 5.066) / 12.151)
	=	0.979279	/	0.680602
	=	1.4388

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
	=	(-4.497 - 0	-	-2.063)	/	5.55
	=	-0.438559

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Guild Esports has a M-score of -5.05 suggests that the company is unlikely to be a manipulator.

Guild Esports Beneish M-Score Related Terms

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Guild Esports (LSE:GILD) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Guild Esports PLC (LSE:GILD) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

GULDF:USA GU0:Germany

Address

2 Chance Street, London, GBR, E1 6JT

Website

https://www.guildesports.com

Guild Esports PLC operates an esports business. The company focuses on creating a franchise by establishing its esports teams to compete in main esports tournaments and a player training and scouting infrastructure modelled on the talent academies pioneered by Premier League football teams. Revenue is generated through multi-year sponsorship deals with corporate and consumer brands.