African Media Entertainment (JSE:AME) Beneish M-Score : -2.24 (As of Dec. 11, 2024)

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What is African Media 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 -2.24 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

JSE:AME' s Beneish M-Score Range Over the Past 10 Years
Min: -3.07 Med: -2.55 Max: -2.15
Current: -2.24

During the past 13 years, the highest Beneish M-Score of African Media Entertainment was -2.15. The lowest was -3.07. And the median was -2.55.

African Media Entertainment Beneish M-Score Historical Data

The historical data trend for African Media 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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African Media Entertainment Beneish M-Score Chart

African Media Entertainment Annual Data

Trend

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Beneish M-Score

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-2.58

-3.07

-2.60

-2.30

-2.24

African Media Entertainment Semi-Annual Data
	Mar15	Sep15	Mar16	Sep16	Mar17	Sep17	Mar18	Sep18	Mar19	Sep19	Mar20	Sep20	Mar21	Sep21	Mar22	Sep22	Mar23	Sep23	Mar24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-	-2.30	-	-2.24	-

Competitive Comparison of African Media Entertainment's Beneish M-Score

For the Broadcasting subindustry, African Media 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.

African Media Entertainment's Beneish M-Score Distribution in the Media - Diversified Industry

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

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

African Media 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 African Media 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 * 0.8455

0.528 * 1.0463

0.404 * 2.067

0.892 * 1.0799

0.115 * 1.0393

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.5566

4.679 * -0.021355

0.327 * 1.3943

-2.24

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was R63.9 Mil.
Revenue was R290.1 Mil.
Gross Profit was R206.7 Mil.
Total Current Assets was R151.4 Mil.
Total Assets was R446.2 Mil.
Property, Plant and Equipment(Net PPE) was R117.8 Mil.
Depreciation, Depletion and Amortization(DDA) was R7.1 Mil.
Selling, General, & Admin. Expense(SGA) was R2.9 Mil.
Total Current Liabilities was R94.3 Mil.
Long-Term Debt & Capital Lease Obligation was R34.2 Mil.
Net Income was R55.4 Mil.
Gross Profit was R0.0 Mil.
Cash Flow from Operations was R65.0 Mil.

Total Receivables was R70.0 Mil.
Revenue was R268.7 Mil.
Gross Profit was R200.3 Mil.
Total Current Assets was R154.9 Mil.
Total Assets was R338.3 Mil.
Property, Plant and Equipment(Net PPE) was R118.5 Mil.
Depreciation, Depletion and Amortization(DDA) was R7.4 Mil.
Selling, General, & Admin. Expense(SGA) was R4.8 Mil.
Total Current Liabilities was R69.9 Mil.
Long-Term Debt & Capital Lease Obligation was R0.0 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)
	=	(63.881 / 290.146)	/	(69.958 / 268.669)
	=	0.220168	/	0.260387
	=	0.8455

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)
	=	(200.267 / 268.669)	/	(206.7 / 290.146)
	=	0.745404	/	0.7124
	=	1.0463

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 - (151.433 + 117.778) / 446.169)	/	(1 - (154.937 + 118.456) / 338.309)
	=	0.396617	/	0.191884
	=	2.067

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
	=	290.146	/	268.669
	=	1.0799

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))
	=	(7.395 / (7.395 + 118.456))	/	(7.058 / (7.058 + 117.778))
	=	0.05876	/	0.056538
	=	1.0393

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)
	=	(2.855 / 290.146)	/	(4.75 / 268.669)
	=	0.00984	/	0.01768
	=	0.5566

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)
	=	((34.23 + 94.286) / 446.169)	/	((0 + 69.89) / 338.309)
	=	0.288043	/	0.206586
	=	1.3943

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
	=	(55.445 - 0	-	64.973)	/	446.169
	=	-0.021355

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.

African Media Entertainment has a M-score of -2.24 suggests that the company is unlikely to be a manipulator.

African Media Entertainment Beneish M-Score Related Terms

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African Media Entertainment Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Media - Diversified » African Media Entertainment Ltd (JSE:AME) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

N/A

Address

No. 5, 8th Street, Block A, Oxford Office Park, Houghton Estate, Johannesburg, GT, ZAF, 2198

Website

http://www.ame.co.za

African Media Entertainment Ltd is involved in providing broadcasting services in South Africa. The company's operating segment includes Radio broadcasters; Media Services and Corporate. It generates maximum revenue from the Radio broadcasters segment.