Chicken Soup for the Soul Entertainment (Chicken Soup for the Soul Entertainment) Beneish M-Score : -7.87 (As of Apr. 30, 2024)

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What is Chicken Soup for the Soul Entertainment 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 -7.87 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Chicken Soup for the Soul Entertainment's Beneish M-Score or its related term are showing as below:

CSSE' s Beneish M-Score Range Over the Past 10 Years
Min: -7.87 Med: -1.76 Max: -0.94
Current: -7.87

During the past 8 years, the highest Beneish M-Score of Chicken Soup for the Soul Entertainment was -0.94. The lowest was -7.87. And the median was -1.76.

Chicken Soup for the Soul Entertainment Beneish M-Score Historical Data

The historical data trend for Chicken Soup for the Soul Entertainment'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.

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Chicken Soup for the Soul Entertainment Beneish M-Score Chart

Chicken Soup for the Soul Entertainment Annual Data

Trend

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.11

-3.35

-2.01

-1.51

-7.87

Chicken Soup for the Soul Entertainment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.51	-1.23	-1.47	-3.68	-7.87

Competitive Comparison of Chicken Soup for the Soul Entertainment's Beneish M-Score

For the Entertainment subindustry, Chicken Soup for the Soul Entertainment'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.

Chicken Soup for the Soul Entertainment's Beneish M-Score Distribution in the Media - Diversified Industry

For the Media - Diversified industry and Communication Services sector, Chicken Soup for the Soul Entertainment's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Chicken Soup for the Soul Entertainment's Beneish M-Score falls into.

Chicken Soup for the Soul Entertainment 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 Chicken Soup for the Soul Entertainment 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 * 1.0706

0.528 * -3.8622

0.404 * 0.7418

0.892 * 1.1645

0.115 * 0.9258

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9705

4.679 * -0.524782

0.327 * 2.4534

-7.87

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $142.1 Mil.
Revenue was 39.174 + 65.724 + 79.91 + 109.599 = $294.4 Mil.
Gross Profit was -38.904 + -0.166 + 14.624 + 13.293 = $-11.2 Mil.
Total Current Assets was $155.8 Mil.
Total Assets was $422.3 Mil.
Property, Plant and Equipment(Net PPE) was $10.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $134.3 Mil.
Selling, General, & Admin. Expense(SGA) was $78.8 Mil.
Total Current Liabilities was $259.0 Mil.
Long-Term Debt & Capital Lease Obligation was $525.2 Mil.
Net Income was -96.749 + -429.793 + -40.409 + -55.565 = $-622.5 Mil.
Non Operating Income was -5.266 + -373.767 + 1.095 + 0.344 = $-377.6 Mil.
Cash Flow from Operations was -1.914 + 0.521 + -5.846 + -16.067 = $-23.3 Mil.

Total Receivables was $114.0 Mil.
Revenue was 113.575 + 72.392 + 37.637 + 29.206 = $252.8 Mil.
Gross Profit was 12.082 + 12.236 + 6.04 + 6.631 = $37.0 Mil.
Total Current Assets was $145.9 Mil.
Total Assets was $883.9 Mil.
Property, Plant and Equipment(Net PPE) was $16.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $98.1 Mil.
Selling, General, & Admin. Expense(SGA) was $69.8 Mil.
Total Current Liabilities was $190.1 Mil.
Long-Term Debt & Capital Lease Obligation was $478.9 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)
	=	(142.088 / 294.407)	/	(113.963 / 252.81)
	=	0.482624	/	0.450785
	=	1.0706

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)
	=	(36.989 / 252.81)	/	(-11.153 / 294.407)
	=	0.146311	/	-0.037883
	=	-3.8622

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 - (155.795 + 10.721) / 422.301)	/	(1 - (145.898 + 16.315) / 883.879)
	=	0.605694	/	0.816476
	=	0.7418

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
	=	294.407	/	252.81
	=	1.1645

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))
	=	(98.09 / (98.09 + 16.315))	/	(134.286 / (134.286 + 10.721))
	=	0.857393	/	0.926066
	=	0.9258

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)
	=	(78.84 / 294.407)	/	(69.755 / 252.81)
	=	0.267793	/	0.275919
	=	0.9705

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)
	=	((525.188 + 258.991) / 422.301)	/	((478.935 + 190.051) / 883.879)
	=	1.85692	/	0.756875
	=	2.4534

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
	=	(-622.516 - -377.594	-	-23.306)	/	422.301
	=	-0.524782

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.

Chicken Soup for the Soul Entertainment has a M-score of -7.87 suggests that the company is unlikely to be a manipulator.

Chicken Soup for the Soul Entertainment Beneish M-Score Related Terms

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Chicken Soup for the Soul Entertainment (Chicken Soup for the Soul Entertainment) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » Chicken Soup for the Soul Entertainment Inc (NAS:CSSE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CSSEP.PFD:USA

Address

132 East Putman Avenue, Floor 2W, Cos Cob, CT, USA, 06807

Website

https://www.cssentertainment.com

Chicken Soup for the Soul Entertainment Inc operates streaming video-on-demand networks. The company owns Crackle Plus, which owns and operates a variety of ad-supported and subscription-based VOD networks including Crackle, Chicken Soup for the Soul, Popcornflix, Popcornflix Kids, Truli, Pivotshare, Espanolflix, and FrightPix. The company also acquires and distributes video content through its Screen Media subsidiary and produces original video content through the Chicken Soup for the Soul Television Group.

Executives

Chicken Soup For The Soul Holdings, Llc	10 percent owner	P.O. BOX 700, COS COB CT 06807
Chicken Soup For The Soul Productions, Llc	10 percent owner	P.O. BOX 700, COS COB CT 06807
Rouhana William J Jr	director, 10 percent owner, officer: Chief Executive Officer	C/O WINSTAR COMMUNICATIONS INC, 230 PARK AVE, NEW YORK NY 10169
Apollo Management Holdings Gp, Llc	10 percent owner	9 W. 57TH STREET, 43RD FLOOR, NEW YORK NY 10019
Jason Meier	officer: Chief Financial Officer	132 E. PUTNAM AVENUE, FLOOR 2W, COS COB CT 06807
Apollo Management Holdings, L.p.	10 percent owner	9 W. 57TH STREET, NEW YORK NY 10019
Jonathan Saul Katz	officer: President	132 E. PUTNAM AVENUE, FLOOR 2W, COS COB CT 06807
Galen C Smith	officer: Executive Vice Chairman	C/O COINSTAR, INC., 1800 114TH AVE SE, BELLEVUE WA 98004
Ap Viii Aspen Holdings Gp, Llc	10 percent owner	ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Ap Viii Aspen Holdings, L.p.	10 percent owner	ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Redwood Holdco Gp, Llc	10 percent owner	C/O REDBOX ENTERTAINMENT INC., 1 TOWER LANE, SUITE 800, OAKBROOK TERRACE IL 60181
Redwood Holdco, Lp	10 percent owner	C/O REDBOX ENTERTAINMENT INC., 1 TOWER LANE, SUITE 800, OAKBROOK TERRACE IL 60181
New Outerwall, Inc.	10 percent owner	ONE MANHATTANVILLE ROAD, SUITE 201, PURCHASE NY 10577
Apollo Management, L.p.	10 percent owner	2 MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577
Apollo Management Gp, Llc	10 percent owner	TWO MANHATTANVILLE ROAD, SUITE 203, PURCHASE NY 10577