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Fox (FOX) Beneish M-Score

: -2.45 (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 -2.45 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FOX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.71   Med: -2.55   Max: -2.33
Current: -2.45

During the past 8 years, the highest Beneish M-Score of Fox was -2.33. The lowest was -3.71. And the median was -2.55.


Fox Beneish M-Score Historical Data

The historical data trend for Fox'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.

Fox Annual Data
Trend Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only -3.27 -2.71 -2.65 -2.47 -2.41

Fox 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 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 -2.56 -2.42 -2.41 -2.33 -2.45

Competitive Comparison

For the Entertainment subindustry, Fox'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.


Fox Beneish M-Score Distribution

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

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



Fox 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 Fox 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 * 0.9803+0.528 * 1+0.404 * 0.9994+0.892 * 1.019+0.115 * 0.9615
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.977+4.679 * 0.014445-0.327 * 1.1213
=-2.45

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $3,001 Mil.
Revenue was 4234 + 3207 + 3032 + 4084 = $14,557 Mil.
Gross Profit was 4234 + 3207 + 3032 + 4084 = $14,557 Mil.
Total Current Assets was $8,501 Mil.
Total Assets was $22,846 Mil.
Property, Plant and Equipment(Net PPE) was $2,590 Mil.
Depreciation, Depletion and Amortization(DDA) was $402 Mil.
Selling, General, & Admin. Expense(SGA) was $2,026 Mil.
Total Current Liabilities was $3,707 Mil.
Long-Term Debt & Capital Lease Obligation was $8,091 Mil.
Net Income was 109 + 407 + 375 + -54 = $837 Mil.
Non Operating Income was -46 + -166 + -88 + -719 = $-1,019 Mil.
Cash Flow from Operations was -536 + 1 + 493 + 1568 = $1,526 Mil.
Total Receivables was $3,004 Mil.
Revenue was 4605 + 3192 + 3033 + 3455 = $14,285 Mil.
Gross Profit was 4605 + 3192 + 3033 + 3455 = $14,285 Mil.
Total Current Assets was $8,571 Mil.
Total Assets was $23,126 Mil.
Property, Plant and Equipment(Net PPE) was $2,649 Mil.
Depreciation, Depletion and Amortization(DDA) was $393 Mil.
Selling, General, & Admin. Expense(SGA) was $2,035 Mil.
Total Current Liabilities was $2,543 Mil.
Long-Term Debt & Capital Lease Obligation was $8,108 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)
=(3001 / 14557) / (3004 / 14285)
=0.206155 / 0.210291
=0.9803

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)
=(14285 / 14285) / (14557 / 14557)
=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 - (8501 + 2590) / 22846) / (1 - (8571 + 2649) / 23126)
=0.514532 / 0.514832
=0.9994

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
=14557 / 14285
=1.019

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))
=(393 / (393 + 2649)) / (402 / (402 + 2590))
=0.129191 / 0.134358
=0.9615

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)
=(2026 / 14557) / (2035 / 14285)
=0.139177 / 0.142457
=0.977

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)
=((8091 + 3707) / 22846) / ((8108 + 2543) / 23126)
=0.516414 / 0.460564
=1.1213

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
=(837 - -1019 - 1526) / 22846
=0.014445

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.

Fox has a M-score of -2.45 suggests that the company is unlikely to be a manipulator.


Fox (FOX) Business Description

Traded in Other Exchanges
Address
1211 Avenue of the Americas, New York, NY, USA, 10036
Fox represents the assets not sold to Disney by predecessor firm, Twenty First Century Fox, in 2019. The remaining assets include Fox News, the FOX broadcast network, FS1 and FS2, Fox Business, Big Ten Network, 28 owned and operated local television stations of which 17 are affiliated with the Fox Network, Tubi, and the Fox Studios lot. Since the Disney sale, Fox has acquired other related and unrelated assets including Credible Labs, a consumer fintech firm. The Murdoch family continues to control the successor firm, which represents a large-scale bet on the value of live sports and news in the U.S. market.
Executives
Keith Rupert Murdoch director, officer: Chairman C/O FOX CORPORATION, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Viet D Dinh officer: Chief Legal and Policy Officer GEORGETOWN UNIVERSITY LAW CENTER, 600 NEW JERSEY AVENUE NW, WASHINGTON DC 20001
Lachlan K Murdoch director, officer: Executive Chairman, CEO C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
John Nallen officer: Chief Operating Officer C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Roland A Hernandez director 300 NORTH SAN RAFAEL AVE, PASADENA CA 91105
Jacques A Nasser director
Chase Carey director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Steven Tomsic officer: Chief Financial Officer 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Paul D Ryan director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Anne Dias director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Cruden Financial Services Llc 10 percent owner C/O MCDONALD CARANO WILSON LLP, 100 LIBERTY STREET, RENO NV 89501
Murdoch Family Trust 10 percent owner C/O MCDONALD CARANO WILSON LLP, 100 LIBERTY STREET, RENO NV 89501
Twenty-first Century Fox, Inc. 10 percent owner 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036

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