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Entain 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 Entain's Beneish M-Score or its related term are showing as below:

LSE:ENT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.78   Med: -2.17   Max: 67.05
Current: -2.53

During the past 13 years, the highest Beneish M-Score of Entain was 67.05. The lowest was -3.78. And the median was -2.17.


Entain Beneish M-Score Historical Data

The historical data trend for Entain'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.

Entain Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.78 -0.25 67.05 -2.95 -2.53

Entain Semi-Annual Data
Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21
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 67.05 - -2.95 - -2.53

Competitive Comparison

For the Gambling subindustry, Entain'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.

   

Entain Beneish M-Score Distribution

For the Travel & Leisure industry and Consumer Cyclical sector, Entain's Beneish M-Score distribution charts can be found below:

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



Entain 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 Entain 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 * 1.055+0.528 * 1.0192+0.404 * 1.0531+0.892 * 1.0754+0.115 * 1.2241
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9834+4.679 * -0.0527-0.327 * 0.9471
=-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 (Dec21) TTM:Last Year (Dec20) TTM:
Total Receivables was £540 Mil.
Revenue was £3,830 Mil.
Gross Profit was £2,436 Mil.
Total Current Assets was £1,107 Mil.
Total Assets was £7,252 Mil.
Property, Plant and Equipment(Net PPE) was £467 Mil.
Depreciation, Depletion and Amortization(DDA) was £367 Mil.
Selling, General, & Admin. Expense(SGA) was £611 Mil.
Total Current Liabilities was £1,240 Mil.
Long-Term Debt & Capital Lease Obligation was £2,377 Mil.
Net Income was £249 Mil.
Gross Profit was £0 Mil.
Cash Flow from Operations was £632 Mil.
Total Receivables was £476 Mil.
Revenue was £3,562 Mil.
Gross Profit was £2,309 Mil.
Total Current Assets was £1,395 Mil.
Total Assets was £7,270 Mil.
Property, Plant and Equipment(Net PPE) was £470 Mil.
Depreciation, Depletion and Amortization(DDA) was £549 Mil.
Selling, General, & Admin. Expense(SGA) was £577 Mil.
Total Current Liabilities was £1,494 Mil.
Long-Term Debt & Capital Lease Obligation was £2,334 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)
=(539.8 / 3830) / (475.8 / 3561.6)
=0.14093995 / 0.13359164
=1.055

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)
=(2308.6 / 3561.6) / (2435.8 / 3830)
=0.64819182 / 0.63597911
=1.0192

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 - (1107.4 + 467.2) / 7252) / (1 - (1395.2 + 470.2) / 7269.7)
=0.78287369 / 0.74340069
=1.0531

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
=3830 / 3561.6
=1.0754

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))
=(549.3 / (549.3 + 470.2)) / (367.3 / (367.3 + 467.2))
=0.53879353 / 0.4401438
=1.2241

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)
=(610.5 / 3830) / (577.3 / 3561.6)
=0.15939948 / 0.16209007
=0.9834

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)
=((2376.8 + 1239.7) / 7252) / ((2333.9 + 1493.8) / 7269.7)
=0.49869002 / 0.52652792
=0.9471

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
=(249.3 - 0 - 631.8) / 7252
=-0.0527

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.

Entain has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.


Entain Business Description

Entain logo
Traded in Other Exchanges
Address
One New Change, London, GBR, EC4M 9AF
Entain PLC is an online sports betting and gaming company. It owns a portfolio of sports brands that include bwin, Coral, Crystalbet, Eurobet, Ladbrokes, Neds and Sportingbet; Games Brands include CasinoClub, Foxy Bingo, Gala, Gioco Digitale, partypoker and PartyCasino. The Group's operating segments are aggregated into five reportable segments: Online, Retail, New Opportunities, Other and Corporate.

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