Take-Two Interactive Software (FRA:TKE) Beneish M-Score : -2.71 (As of Apr. 28, 2024)

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What is Take-Two Interactive Software 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 -2.71 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

FRA:TKE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.33 Med: -2.52 Max: 8.87
Current: -2.71

During the past 13 years, the highest Beneish M-Score of Take-Two Interactive Software was 8.87. The lowest was -3.33. And the median was -2.52.

Take-Two Interactive Software Beneish M-Score Historical Data

The historical data trend for Take-Two Interactive Software'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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Take-Two Interactive Software Beneish M-Score Chart

Take-Two Interactive Software Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Beneish M-Score

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-2.48

-2.42

-2.78

-2.01

-1.96

Take-Two Interactive Software 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															-1.96	-1.96	-2.73	-2.63	-2.71

Competitive Comparison of Take-Two Interactive Software's Beneish M-Score

For the Electronic Gaming & Multimedia subindustry, Take-Two Interactive Software'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.

Take-Two Interactive Software's Beneish M-Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Take-Two Interactive Software's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Take-Two Interactive Software's Beneish M-Score falls into.

Take-Two Interactive Software 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 Take-Two Interactive Software 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 * 0.8514

0.528 * 1.4517

0.404 * 0.9971

0.892 * 1.0828

0.115 * 0.7926

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9886

4.679 * -0.083077

0.327 * 1.0742

-2.74

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was €692 Mil.
Revenue was 1252.897 + 1217.35 + 1185.778 + 1350.751 = €5,007 Mil.
Gross Profit was 621.818 + 389.23 + 626.902 + 208.469 = €1,846 Mil.
Total Current Assets was €2,034 Mil.
Total Assets was €13,659 Mil.
Property, Plant and Equipment(Net PPE) was €657 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,865 Mil.
Selling, General, & Admin. Expense(SGA) was €2,132 Mil.
Total Current Liabilities was €2,469 Mil.
Long-Term Debt & Capital Lease Obligation was €2,833 Mil.
Net Income was -83.997 + -509.353 + -190.138 + -570.02 = €-1,354 Mil.
Non Operating Income was -0.275 + -157.041 + 0.738 + -24.471 = €-181 Mil.
Cash Flow from Operations was -70.609 + 60.718 + 4.615 + -32.41 = €-38 Mil.

Total Receivables was €751 Mil.
Revenue was 1328.963 + 1407.435 + 1042.87 + 844.44 = €4,624 Mil.
Gross Profit was 675.81 + 686.396 + 630.698 + 482.511 = €2,475 Mil.
Total Current Assets was €2,461 Mil.
Total Assets was €15,936 Mil.
Property, Plant and Equipment(Net PPE) was €642 Mil.
Depreciation, Depletion and Amortization(DDA) was €909 Mil.
Selling, General, & Admin. Expense(SGA) was €1,992 Mil.
Total Current Liabilities was €2,841 Mil.
Long-Term Debt & Capital Lease Obligation was €2,917 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)
	=	(692.335 / 5006.776)	/	(750.952 / 4623.708)
	=	0.13828	/	0.162413
	=	0.8514

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)
	=	(2475.415 / 4623.708)	/	(1846.419 / 5006.776)
	=	0.535374	/	0.368784
	=	1.4517

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 - (2034.364 + 657.489) / 13659.357)	/	(1 - (2460.725 + 642.392) / 15936.042)
	=	0.80293	/	0.805277
	=	0.9971

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
	=	5006.776	/	4623.708
	=	1.0828

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))
	=	(909.032 / (909.032 + 642.392))	/	(1864.508 / (1864.508 + 657.489))
	=	0.585934	/	0.739298
	=	0.7926

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)
	=	(2132.043 / 5006.776)	/	(1991.648 / 4623.708)
	=	0.425832	/	0.430747
	=	0.9886

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)
	=	((2832.521 + 2468.931) / 13659.357)	/	((2916.677 + 2841.251) / 15936.042)
	=	0.388119	/	0.361315
	=	1.0742

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
	=	(-1353.508 - -181.049	-	-37.686)	/	13659.357
	=	-0.083077

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.

Take-Two Interactive Software has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.

Take-Two Interactive Software Beneish M-Score Related Terms

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Take-Two Interactive Software (FRA:TKE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Take-Two Interactive Software Inc (FRA:TKE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

TTWO:USA TTWO:Mexico T1TW34:Brazil TTWO:Austria

Address

110 West 44th Street, New York, NY, USA, 10036

Website

https://www.take2games.com

Found in 1993, Take-Two consists of three wholly owned labels, Rockstar Games, 2K, and Zynga. The firm is one of the world's largest independent video game publishers on consoles, PCs, smartphones, and tablets. Take-Two's franchise portfolio is headlined by "Grand Theft Auto" (345 million units sold) and contains other well-known titles such as "NBA 2K," "Civilization," "Borderlands," "Bioshock," and "Xcom." Zynga mobile titles include "Farmville," "Empires & Puzzles," and "CSR Racing.".

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