Warner Bros. Discovery (BSP:W1BD34) Beneish M-Score : -3.02 (As of Dec. 13, 2024)

View and export this data going back to 2019. Start your Free Trial

What is Warner Bros. Discovery 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 -3.02 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Warner Bros. Discovery's Beneish M-Score or its related term are showing as below:

BSP:W1BD34' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.54 Max: -0.41
Current: -3.02

During the past 13 years, the highest Beneish M-Score of Warner Bros. Discovery was -0.41. The lowest was -3.07. And the median was -2.54.

Warner Bros. Discovery Beneish M-Score Historical Data

The historical data trend for Warner Bros. Discovery'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.

Warner Bros. Discovery Beneish M-Score Chart

Warner Bros. Discovery Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.63

-2.67

-2.80

-0.66

-2.83

Warner Bros. Discovery 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															-2.65	-2.83	-3.01	-3.07	-3.02

Competitive Comparison of Warner Bros. Discovery's Beneish M-Score

For the Entertainment subindustry, Warner Bros. Discovery'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.

Warner Bros. Discovery's Beneish M-Score Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Warner Bros. Discovery's Beneish M-Score falls into.

Warner Bros. Discovery 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 Warner Bros. Discovery 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 * 1.0187

0.528 * 0.9523

0.404 * 0.9707

0.892 * 0.965

0.115 * 1.0477

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0414

4.679 * -0.072153

0.327 * 1.0591

-2.89

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was R$30,646 Mil.
Revenue was 53290.249 + 52315.189 + 49588.848 + 50389.543 = R$205,584 Mil.
Gross Profit was 24598.908 + 18899.825 + 19421.22 + 21500.322 = R$84,420 Mil.
Total Current Assets was R$69,250 Mil.
Total Assets was R$588,851 Mil.
Property, Plant and Equipment(Net PPE) was R$34,102 Mil.
Depreciation, Depletion and Amortization(DDA) was R$113,022 Mil.
Selling, General, & Admin. Expense(SGA) was R$49,607 Mil.
Total Current Liabilities was R$86,916 Mil.
Long-Term Debt & Capital Lease Obligation was R$205,818 Mil.
Net Income was 747.603 + -53785.595 + -4810.487 + -1959.92 = R$-59,808 Mil.
Non Operating Income was -155.058 + -47850.112 + -717.091 + -347.886 = R$-49,070 Mil.
Cash Flow from Operations was 4690.517 + 6614.131 + 2913.183 + 17531.484 = R$31,749 Mil.

Total Receivables was R$31,173 Mil.
Revenue was 49283.287 + 50274.625 + 55732.02 + 57741.363 = R$213,031 Mil.
Gross Profit was 23063.729 + 18065.471 + 20912.529 + 21264.852 = R$83,307 Mil.
Total Current Assets was R$63,368 Mil.
Total Assets was R$611,159 Mil.
Property, Plant and Equipment(Net PPE) was R$28,694 Mil.
Depreciation, Depletion and Amortization(DDA) was R$118,323 Mil.
Selling, General, & Admin. Expense(SGA) was R$49,359 Mil.
Total Current Liabilities was R$72,046 Mil.
Long-Term Debt & Capital Lease Obligation was R$214,824 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)
	=	(30646.185 / 205583.829)	/	(31173.074 / 213031.295)
	=	0.149069	/	0.146331
	=	1.0187

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)
	=	(83306.581 / 213031.295)	/	(84420.275 / 205583.829)
	=	0.391053	/	0.410637
	=	0.9523

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 - (69250.189 + 34101.772) / 588850.887)	/	(1 - (63368.46 + 28693.847) / 611159.186)
	=	0.824485	/	0.849364
	=	0.9707

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
	=	205583.829	/	213031.295
	=	0.965

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))
	=	(118323.493 / (118323.493 + 28693.847))	/	(113022.22 / (113022.22 + 34101.772))
	=	0.804827	/	0.768211
	=	1.0477

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)
	=	(49606.768 / 205583.829)	/	(49359.077 / 213031.295)
	=	0.241297	/	0.231699
	=	1.0414

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)
	=	((205817.875 + 86915.771) / 588850.887)	/	((214823.573 + 72045.756) / 611159.186)
	=	0.497127	/	0.469386
	=	1.0591

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
	=	(-59808.399 - -49070.147	-	31749.315)	/	588850.887
	=	-0.072153

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.

Warner Bros. Discovery has a M-score of -2.89 suggests that the company is unlikely to be a manipulator.

Warner Bros. Discovery Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Warner Bros. Discovery's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Warner Bros. Discovery Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Warner Bros. Discovery Inc (BSP:W1BD34) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

WBD:USA 1WBD:Italy J5A:Germany J5A:Germany J5A:Germany J5A:Germany

Address

230 Park Avenue South, New York, NY, USA, 10003

Website

https://www.wbd.com

Warner Bros. Discovery was formed in 2022 through the combination of WarnerMedia and Discovery Communications. It operates in three global business segments: studios, networks, and direct-to-consumer. Warner Bros. Pictures is the crown jewel of the studios business, producing, distributing, and licensing movies and television shows. The networks business consists of basic cable networks, such as CNN, TNT, TBS, Discovery, HGTV, and the Food Network. Direct-to-consumer includes HBO and the firm's streaming platforms, which have now been consolidated to Max and Discovery+. Much of the DTC content is created within the firm's other two business segments. Each segment operates with a global reach, with Max available in over 60 countries.

Warner Bros. Discovery Headlines

No Headlines