ARN Media (ARN Media) Beneish M-Score : -2.25 (As of Apr. 28, 2024)

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What is ARN Media 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 -2.25 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ARNMF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22 Med: -2.7 Max: -1.17
Current: -2.25

During the past 13 years, the highest Beneish M-Score of ARN Media was -1.17. The lowest was -3.22. And the median was -2.70.

ARN Media Beneish M-Score Historical Data

The historical data trend for ARN Media'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.

* Premium members only.

ARN Media Beneish M-Score Chart

ARN Media Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.22

-2.74

-3.01

-1.84

-2.25

ARN Media Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-3.01	-	-1.84	-	-2.25

Competitive Comparison of ARN Media's Beneish M-Score

For the Broadcasting subindustry, ARN Media'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.

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

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

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

ARN Media 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 ARN Media 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 * 1.1393

0.528 * 1

0.404 * 0.915

0.892 * 0.9615

0.115 * 1.4302

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9314

4.679 * 0.041282

0.327 * 1.2647

-2.25

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $48.5 Mil.
Revenue was $223.8 Mil.
Gross Profit was $223.8 Mil.
Total Current Assets was $68.5 Mil.
Total Assets was $425.9 Mil.
Property, Plant and Equipment(Net PPE) was $84.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.1 Mil.
Selling, General, & Admin. Expense(SGA) was $166.7 Mil.
Total Current Liabilities was $37.1 Mil.
Long-Term Debt & Capital Lease Obligation was $104.8 Mil.
Net Income was $-6.5 Mil.
Gross Profit was $-37.9 Mil.
Cash Flow from Operations was $13.8 Mil.

Total Receivables was $44.3 Mil.
Revenue was $232.7 Mil.
Gross Profit was $232.7 Mil.
Total Current Assets was $79.2 Mil.
Total Assets was $455.1 Mil.
Property, Plant and Equipment(Net PPE) was $57.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.6 Mil.
Selling, General, & Admin. Expense(SGA) was $186.2 Mil.
Total Current Liabilities was $43.0 Mil.
Long-Term Debt & Capital Lease Obligation was $76.9 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)
	=	(48.529 / 223.756)	/	(44.301 / 232.719)
	=	0.216884	/	0.190363
	=	1.1393

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)
	=	(232.719 / 232.719)	/	(223.756 / 223.756)
	=	1	/	1
	=	1

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 - (68.541 + 84.551) / 425.922)	/	(1 - (79.192 + 57.318) / 455.109)
	=	0.640563	/	0.70005
	=	0.915

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
	=	223.756	/	232.719
	=	0.9615

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))
	=	(13.63 / (13.63 + 57.318))	/	(13.12 / (13.12 + 84.551))
	=	0.192113	/	0.134329
	=	1.4302

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)
	=	(166.729 / 223.756)	/	(186.177 / 232.719)
	=	0.745138	/	0.800008
	=	0.9314

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)
	=	((104.843 + 37.099) / 425.922)	/	((76.889 + 43.034) / 455.109)
	=	0.333258	/	0.263504
	=	1.2647

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
	=	(-6.539 - -37.942	-	13.82)	/	425.922
	=	0.041282

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.

ARN Media has a M-score of -2.25 suggests that the company is unlikely to be a manipulator.

ARN Media Beneish M-Score Related Terms

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ARN Media (ARN Media) Business Description

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A1N:Australia

Address

3 Byfield Street, Macquarie Park, Sydney, NSW, AUS, 2113

Website

https://www.arn.com.au

ARN Media Ltd is one of Australia's leading Broadcast and On-demand audio companies. It is Defining Audio through even more Connections That Count, ARN has ownership of approx 58 radio stations across 33 markets plus 46 DAB+ stations nationwide in addition to the digital entertainment platform, iHeartRadio.