The Walt Disney Co (BUE:DIS) Beneish M-Score

: -2.55 (As of Today)

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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 -2.55 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BUE:DIS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34 Med: -2.64 Max: -0.65
Current: -2.55

During the past 13 years, the highest Beneish M-Score of The Walt Disney Co was -0.65. The lowest was -3.34. And the median was -2.64.

The Walt Disney Co Beneish M-Score Historical Data

The historical data trend for The Walt Disney Co'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.

The Walt Disney Co Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Beneish M-Score

-2.48

-1.76

-2.80

-2.52

-2.53

The Walt Disney Co Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Beneish M-Score																-2.45	-2.52	-2.53	-2.51	-2.55

Competitive Comparison

For the Entertainment subindustry, The Walt Disney Co'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.

Annual Data Quarterly Data

The Walt Disney Co Beneish M-Score Distribution

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

* The bar in red indicates where The Walt Disney Co's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.

The Walt Disney Co 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 The Walt Disney Co 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 * 0.9644

0.528 * 1.0304

0.404 * 1.0162

0.892 * 1.7724

0.115 * 1.1837

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9369

4.679 * -0.012136

0.327 * 0.948

-1.81

This Year (Mar23) TTM:

Last Year (Mar22) TTM:

Total Receivables was ARS2,522,714 Mil.
Revenue was 4309553.35 + 3941786.691 + 2799842.458 + 2587576.356 = ARS13,638,759 Mil.
Gross Profit was 1422162.483 + 1194673.867 + 915958.386 + 941221.273 = ARS4,474,016 Mil.
Total Current Assets was ARS5,583,356 Mil.
Total Assets was ARS40,469,699 Mil.
Property, Plant and Equipment(Net PPE) was ARS6,831,082 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS815,964 Mil.
Selling, General, & Admin. Expense(SGA) was ARS2,506,546 Mil.
Total Current Liabilities was ARS5,542,463 Mil.
Long-Term Debt & Capital Lease Obligation was ARS8,902,789 Mil.
Net Income was 251086.056 + 214424.344 + 22509.9 + 169544.972 = ARS657,565 Mil.
Non Operating Income was 33583.501 + 27829.899 + 22232 + 7099.47 = ARS90,745 Mil.
Cash Flow from Operations was 639271.815 + -163291.095 + 350709.795 + 231274.263 = ARS1,057,965 Mil.

Total Receivables was ARS1,475,936 Mil.
Revenue was 2066804.681 + 2203500.764 + 1812254.501 + 1612494.114 = ARS7,695,054 Mil.
Gross Profit was 714561.024 + 732379.465 + 605551.534 + 548391.989 = ARS2,600,884 Mil.
Total Current Assets was ARS3,374,382 Mil.
Total Assets was ARS21,737,795 Mil.
Property, Plant and Equipment(Net PPE) was ARS3,534,366 Mil.
Depreciation, Depletion and Amortization(DDA) was ARS510,942 Mil.
Selling, General, & Admin. Expense(SGA) was ARS1,509,443 Mil.
Total Current Liabilities was ARS3,178,320 Mil.
Long-Term Debt & Capital Lease Obligation was ARS5,006,115 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)
	=	(2522713.559 / 13638758.855)	/	(1475936.264 / 7695054.06)
	=	0.184967	/	0.191803
	=	0.9644

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)
	=	(2600884.012 / 7695054.06)	/	(4474016.009 / 13638758.855)
	=	0.337994	/	0.328037
	=	1.0304

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 - (5583355.78 + 6831081.609) / 40469698.842)	/	(1 - (3374381.562 + 3534365.924) / 21737794.586)
	=	0.693241	/	0.682178
	=	1.0162

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
	=	13638758.855	/	7695054.06
	=	1.7724

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))
	=	(510941.824 / (510941.824 + 3534365.924))	/	(815964.249 / (815964.249 + 6831081.609))
	=	0.126305	/	0.106703
	=	1.1837

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)
	=	(2506545.596 / 13638758.855)	/	(1509443.49 / 7695054.06)
	=	0.183781	/	0.196158
	=	0.9369

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)
	=	((8902788.507 + 5542462.929) / 40469698.842)	/	((5006114.677 + 3178320.191) / 21737794.586)
	=	0.35694	/	0.376507
	=	0.948

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
	=	(657565.272 - 90744.87	-	1057964.778)	/	40469698.842
	=	-0.012136

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.

The Walt Disney Co has a M-score of -1.81 suggests that the company is unlikely to be a manipulator.

The Walt Disney Co Beneish M-Score Related Terms

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The Walt Disney Co (BUE:DIS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » The Walt Disney Co (BUE:DIS) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

DIS:USA DIS:Mexico 0QZO:UK WDP:Germany DIS:Chile DIS:Canada DISB34:Brazil DIS:Austria

Address

500 South Buena Vista Street, Burbank, CA, USA, 91521

Website

https://www.thewaltdisneycompany.com

Walt Disney owns the rights to some of the most globally recognized characters, from Mickey Mouse to Luke Skywalker. These characters and others are featured in several Disney theme parks around the world. Disney makes live-action and animated films under studios such as Pixar, Marvel, and Lucasfilm and also operates media networks including ESPN and several TV production studios. Disney shifted into a more streaming-focused firm by acquiring the remainder of Hulu and launching Disney+ and ESPN+. Across its streaming platforms, Disney had over 235 million subscribers as of September 2022, up sharply from under 64 million in December 2019.