Light & Wonder (ASX:LNW) Beneish M-Score : -2.43 (As of Dec. 12, 2024)

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What is Light & Wonder 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 -2.43 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

ASX:LNW' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41 Med: -2.73 Max: 1.06
Current: -2.43

During the past 13 years, the highest Beneish M-Score of Light & Wonder was 1.06. The lowest was -3.41. And the median was -2.73.

Light & Wonder Beneish M-Score Historical Data

The historical data trend for Light & Wonder'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.

Light & Wonder Beneish M-Score Chart

Light & Wonder Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.71

-3.41

-2.68

1.06

-2.64

Light & Wonder Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.42	-2.64	-2.61	-2.61	-2.43

Competitive Comparison of Light & Wonder's Beneish M-Score

For the Gambling subindustry, Light & Wonder'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.

Light & Wonder's Beneish M-Score Distribution in the Travel & Leisure Industry

For the Travel & Leisure industry and Consumer Cyclical sector, Light & Wonder's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Light & Wonder's Beneish M-Score falls into.

Light & Wonder 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 Light & Wonder 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 * 1.032

0.528 * 0.9949

0.404 * 1.0774

0.892 * 1.1185

0.115 * 1.1327

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9881

4.679 * -0.036702

0.327 * 1.0658

-2.49

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was A$857 Mil.
Revenue was 1206.709 + 1231.908 + 1152.9 + 1151.874 = A$4,743 Mil.
Gross Profit was 843.367 + 876.492 + 818.925 + 802.278 = A$3,341 Mil.
Total Current Assets was A$1,889 Mil.
Total Assets was A$8,265 Mil.
Property, Plant and Equipment(Net PPE) was A$484 Mil.
Depreciation, Depletion and Amortization(DDA) was A$524 Mil.
Selling, General, & Admin. Expense(SGA) was A$1,301 Mil.
Total Current Liabilities was A$1,004 Mil.
Long-Term Debt & Capital Lease Obligation was A$5,735 Mil.
Net Income was 94.528 + 123.492 + 125.05 + 100.098 = A$443 Mil.
Non Operating Income was -60.557 + -39.156 + 6.1 + -56.772 = A$-150 Mil.
Cash Flow from Operations was 174.286 + 212.346 + 260.775 + 249.498 = A$897 Mil.

Total Receivables was A$742 Mil.
Revenue was 1137.436 + 1089.19 + 1003.66 + 1010.724 = A$4,241 Mil.
Gross Profit was 798.228 + 764.37 + 701.064 + 708.396 = A$2,972 Mil.
Total Current Assets was A$2,676 Mil.
Total Assets was A$9,160 Mil.
Property, Plant and Equipment(Net PPE) was A$423 Mil.
Depreciation, Depletion and Amortization(DDA) was A$605 Mil.
Selling, General, & Admin. Expense(SGA) was A$1,177 Mil.
Total Current Liabilities was A$963 Mil.
Long-Term Debt & Capital Lease Obligation was A$6,045 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)
	=	(856.66 / 4743.391)	/	(742.212 / 4241.01)
	=	0.180601	/	0.175008
	=	1.032

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)
	=	(2972.058 / 4241.01)	/	(3341.062 / 4743.391)
	=	0.70079	/	0.704362
	=	0.9949

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 - (1889.083 + 484.456) / 8265.292)	/	(1 - (2676.32 + 423.232) / 9160.172)
	=	0.712831	/	0.661627
	=	1.0774

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
	=	4743.391	/	4241.01
	=	1.1185

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))
	=	(604.904 / (604.904 + 423.232))	/	(523.586 / (523.586 + 484.456))
	=	0.58835	/	0.519409
	=	1.1327

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)
	=	(1300.956 / 4743.391)	/	(1177.234 / 4241.01)
	=	0.274267	/	0.277583
	=	0.9881

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)
	=	((5735.191 + 1004.36) / 8265.292)	/	((6045.06 + 963.164) / 9160.172)
	=	0.815404	/	0.765076
	=	1.0658

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
	=	(443.168 - -150.385	-	896.905)	/	8265.292
	=	-0.036702

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.

Light & Wonder has a M-score of -2.49 suggests that the company is unlikely to be a manipulator.

Light & Wonder Beneish M-Score Related Terms

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Light & Wonder Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Light & Wonder Inc (ASX:LNW) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

LNW:USA TJW:Germany

Address

6601 Bermuda Road, Las Vegas, NV, USA, 89119

Website

https://www.lnw.com

Light & Wonder is principally an electronic gaming machine manufacturer, selling machines to pubs, clubs, and casinos. The firm is licensed in most jurisdictions allowing gambling globally. Light & Wonder is one of the three largest players in the space along with International Game Technology and Aristocrat Leisure. SciPlay, about one fourth of revenue, develops and distributes casual mobile games, principally in the social casino niche. The more nascent iGaming business sits between these two businesses, providing digital content and capabilities to real-money gaming providers.