REA Group Beneish M-Score Historical Data
The historical data trend for REA Group'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.
REA Group Beneish M-Score Chart
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REA Group Annual Data
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Trend |
Jun15 |
Jun16 |
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Jun18 |
Jun19 |
Jun20 |
Jun21 |
Jun22 |
Jun23 |
Jun24 |
| Beneish M-Score |
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-3.04 |
-2.25 |
-2.38 |
-2.59 |
-1.94 |
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REA Group Semi-Annual Data
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Dec14 |
Jun15 |
Dec15 |
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Dec18 |
Jun19 |
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Dec22 |
Jun23 |
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Jun24 |
| Beneish M-Score |
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-2.38 |
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-2.59 |
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-1.94 |
Competitive Comparison of REA Group's Beneish M-Score
For the Internet Content & Information subindustry, REA Group'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.
REA Group's Beneish M-Score Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, REA Group's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where REA Group's Beneish M-Score falls into.
REA Group 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 REA Group 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 * 1.5498 | + | 0.528 * 1 | + | 0.404 * 0.9819 | + | 0.892 * 1.2208 | + | 0.115 * 0.8652 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9418 | + | 4.679 * -0.038192 | - | 0.327 * 0.9264 |
| = | -1.94 |
* 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.
| This Year (Jun24) TTM: | Last Year (Jun23) TTM: |
Total Receivables was A$293 Mil.
Revenue was A$1,700 Mil.
Gross Profit was A$1,700 Mil.
Total Current Assets was A$665 Mil.
Total Assets was A$2,655 Mil.
Property, Plant and Equipment(Net PPE) was A$81 Mil.
Depreciation, Depletion and Amortization(DDA) was A$114 Mil.
Selling, General, & Admin. Expense(SGA) was A$537 Mil.
Total Current Liabilities was A$433 Mil.
Long-Term Debt & Capital Lease Obligation was A$272 Mil.
Net Income was A$303 Mil.
Gross Profit was A$-185 Mil.
Cash Flow from Operations was A$589 Mil.
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Total Receivables was A$155 Mil.
Revenue was A$1,392 Mil.
Gross Profit was A$1,392 Mil.
Total Current Assets was A$613 Mil.
Total Assets was A$2,627 Mil.
Property, Plant and Equipment(Net PPE) was A$90 Mil.
Depreciation, Depletion and Amortization(DDA) was A$92 Mil.
Selling, General, & Admin. Expense(SGA) was A$467 Mil.
Total Current Liabilities was A$361 Mil.
Long-Term Debt & Capital Lease Obligation was A$393 Mil.
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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) |
| = | (292.5 / 1699.8) | / | (154.6 / 1392.4) |
| = | 0.172079 | / | 0.111031 |
| | = | 1.5498 |
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) |
| = | (1392.4 / 1392.4) | / | (1699.8 / 1699.8) |
| = | 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 - (664.5 + 81.4) / 2655) | / | (1 - (612.7 + 90.4) / 2626.6) |
| = | 0.719058 | / | 0.732316 |
| | = | 0.9819 |
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 |
| = | 1699.8 | / | 1392.4 |
| | = | 1.2208 |
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)) |
| = | (91.8 / (91.8 + 90.4)) | / | (113.5 / (113.5 + 81.4)) |
| = | 0.503842 | / | 0.58235 |
| | = | 0.8652 |
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) |
| = | (536.9 / 1699.8) | / | (467 / 1392.4) |
| = | 0.315861 | / | 0.335392 |
| | = | 0.9418 |
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) |
| = | ((272.4 + 433.2) / 2655) | / | ((392.7 + 360.8) / 2626.6) |
| = | 0.265763 | / | 0.286873 |
| | = | 0.9264 |
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 |
| = | (302.8 - -185.2 | - | 589.4) | / | 2655 |
| | = | -0.038192 |
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.
REA Group has a M-score of -1.94 suggests that the company is unlikely to be a manipulator.
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