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

: -2.53 (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 -2.53 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:

DIS' s Beneish M-Score Range Over the Past 10 Years
Min: -3.12   Med: -2.69   Max: -0.86
Current: -2.53

During the past 13 years, the highest Beneish M-Score of The Walt Disney Co was -0.86. The lowest was -3.12. And the median was -2.69.


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
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.48 -1.76 -2.80 -2.52 -2.53

The Walt Disney Co Quarterly Data
Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.52 -2.51 -2.45 -2.52 -2.53

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.

   

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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.7714+0.528 * 0.9656+0.404 * 1.0262+0.892 * 1.227+0.115 * 1.0168
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9881+4.679 * -0.0136-0.327 * 0.9367
=-2.53

* 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 (Sep22) TTM:Last Year (Sep21) TTM:
Total Receivables was $12,652 Mil.
Revenue was 20150 + 21504 + 19249 + 21819 = $82,722 Mil.
Gross Profit was 6592 + 7822 + 6655 + 7252 = $28,321 Mil.
Total Current Assets was $29,098 Mil.
Total Assets was $203,631 Mil.
Property, Plant and Equipment(Net PPE) was $33,596 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,163 Mil.
Selling, General, & Admin. Expense(SGA) was $16,388 Mil.
Total Current Liabilities was $29,073 Mil.
Long-Term Debt & Capital Lease Obligation was $48,538 Mil.
Net Income was 162 + 1409 + 470 + 1104 = $3,145 Mil.
Non Operating Income was 160 + 59 + -127 + -181 = $-89 Mil.
Cash Flow from Operations was 2524 + 1922 + 1765 + -201 = $6,010 Mil.
Total Receivables was $13,367 Mil.
Revenue was 18534 + 17022 + 15613 + 16249 = $67,418 Mil.
Gross Profit was 6193 + 5789 + 5831 + 4474 = $22,287 Mil.
Total Current Assets was $33,657 Mil.
Total Assets was $203,609 Mil.
Property, Plant and Equipment(Net PPE) was $32,624 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,111 Mil.
Selling, General, & Admin. Expense(SGA) was $13,517 Mil.
Total Current Liabilities was $31,077 Mil.
Long-Term Debt & Capital Lease Obligation was $51,769 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)
=(12652 / 82722) / (13367 / 67418)
=0.15294601 / 0.19827049
=0.7714

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)
=(22287 / 67418) / (28321 / 82722)
=0.33057937 / 0.34236358
=0.9656

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 - (29098 + 33596) / 203631) / (1 - (33657 + 32624) / 203609)
=0.69211957 / 0.6744692
=1.0262

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
=82722 / 67418
=1.227

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))
=(5111 / (5111 + 32624)) / (5163 / (5163 + 33596))
=0.13544455 / 0.13320777
=1.0168

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)
=(16388 / 82722) / (13517 / 67418)
=0.19810933 / 0.20049542
=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)
=((48538 + 29073) / 203631) / ((51769 + 31077) / 203609)
=0.38113549 / 0.40688771
=0.9367

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
=(3145 - -89 - 6010) / 203631
=-0.0136

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 -2.53 suggests that the company is unlikely to be a manipulator.


The Walt Disney Co Beneish M-Score Related Terms

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


The Walt Disney Co (NYSE:DIS) Business Description

The Walt Disney Co logo
Address
500 South Buena Vista Street, Burbank, CA, USA, 91521
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.
Executives
Carolyn Everson director C/O THE HERTZ CORPORATION, 225 BRAE BOULEVARD, PARK RIDGE NJ 07656-0713
Kristina K Schake officer: Sr. EVP and Chief Comm Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Horacio E Gutierrez officer: Sr EVP, General Counsel & Secy 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Geoff Morrell officer: SEVP Chf Corp Affairs Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Paul J Richardson officer: Sr. EVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Amy Chang director 2100 SEAPORT BLVD., C/O INFORMATICA CORPORATION, REDWOOD CITY CA 94063
Calvin Mcdonald director C/O LULULEMON ATHLETICA INC., 1818 CORNWALL AVENUE, VANCOUVER A1 V6J 1C7
Robert A Chapek officer: Chief Executive Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521
Maria Elena Lagomasino director 345 PARK AVENUE 5TH FL, NEW YORK NY 10154
Mark G Parker director ONE BOWERMAN DR, BEAVERTON OR 97005
Mary T Barra director 300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Froman Michael B. G. director 2000 PURCHASE STREET, PURCHASE NY 10577
Alan N Braverman officer: Sr EVP, General Counsel & Secy 500 SOUTH BUENA VISTA ST, BURBANK CA 91521-1030
Christine M Mccarthy officer: SEVP-Chief Financial Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521-0964
Mary Jayne Parker officer: SEVP and Chief HR Officer 500 SOUTH BUENA VISTA STREET, BURBANK CA 91521-0966

The Walt Disney Co (NYSE:DIS) Headlines

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