Peloton Interactive (MEX:PTON) Beneish M-Score : -3.40 (As of Dec. 12, 2024)

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What is Peloton Interactive 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 -3.4 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

MEX:PTON' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67 Med: -2.62 Max: 0.32
Current: -3.4

During the past 8 years, the highest Beneish M-Score of Peloton Interactive was 0.32. The lowest was -3.67. And the median was -2.62.

Peloton Interactive Beneish M-Score Historical Data

The historical data trend for Peloton Interactive'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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Peloton Interactive Beneish M-Score Chart

Peloton Interactive Annual Data

Trend

Jun17

Jun18

Jun19

Jun20

Jun21

Jun22

Jun23

Jun24

Beneish M-Score

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-2.47

-0.25

-2.44

-3.09

-3.47

Peloton Interactive Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-3.46	-3.59	-3.67	-3.47	-3.40

Competitive Comparison of Peloton Interactive's Beneish M-Score

For the Leisure subindustry, Peloton Interactive'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.

Peloton Interactive's Beneish M-Score Distribution in the Travel & Leisure Industry

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

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

Peloton Interactive 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 Peloton Interactive 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 * 1.2127

0.528 * 0.7752

0.404 * 1.0293

0.892 * 0.9508

0.115 * 1.1037

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.8792

4.679 * -0.155131

0.327 * 1.073

-3.15

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was MXN2,004 Mil.
Revenue was 11536.547 + 11788.986 + 11911.132 + 12622.051 = MXN47,859 Mil.
Gross Profit was 5981.913 + 5715.872 + 5139.86 + 5082.09 = MXN21,920 Mil.
Total Current Assets was MXN25,304 Mil.
Total Assets was MXN42,474 Mil.
Property, Plant and Equipment(Net PPE) was MXN14,717 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN1,837 Mil.
Selling, General, & Admin. Expense(SGA) was MXN20,572 Mil.
Total Current Liabilities was MXN12,606 Mil.
Long-Term Debt & Capital Lease Obligation was MXN38,821 Mil.
Net Income was -17.721 + -558.763 + -2776.553 + -3308.281 = MXN-6,661 Mil.
Non Operating Income was -326.859 + 844.557 + -974.2 + -123.912 = MXN-580 Mil.
Cash Flow from Operations was 246.129 + 599.067 + 192.517 + -529.597 = MXN508 Mil.

Total Receivables was MXN1,738 Mil.
Revenue was 10374.695 + 11009.813 + 13497.12 + 15454.479 = MXN50,336 Mil.
Gross Profit was 4971.353 + 3447.638 + 4870.355 + 4581.56 = MXN17,871 Mil.
Total Current Assets was MXN27,652 Mil.
Total Assets was MXN46,557 Mil.
Property, Plant and Equipment(Net PPE) was MXN16,292 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN2,274 Mil.
Selling, General, & Admin. Expense(SGA) was MXN24,611 Mil.
Total Current Liabilities was MXN13,064 Mil.
Long-Term Debt & Capital Lease Obligation was MXN39,471 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)
	=	(2004.473 / 47858.716)	/	(1738.406 / 50336.107)
	=	0.041883	/	0.034536
	=	1.2127

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)
	=	(17870.906 / 50336.107)	/	(21919.735 / 47858.716)
	=	0.355032	/	0.458009
	=	0.7752

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 - (25304.005 + 14716.53) / 42473.946)	/	(1 - (27652.499 + 16291.894) / 46557.228)
	=	0.057763	/	0.056121
	=	1.0293

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
	=	47858.716	/	50336.107
	=	0.9508

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))
	=	(2273.719 / (2273.719 + 16291.894))	/	(1836.791 / (1836.791 + 14716.53))
	=	0.122469	/	0.110962
	=	1.1037

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)
	=	(20571.833 / 47858.716)	/	(24610.556 / 50336.107)
	=	0.429845	/	0.488925
	=	0.8792

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)
	=	((38821.396 + 12605.73) / 42473.946)	/	((39471.221 + 13064.173) / 46557.228)
	=	1.210792	/	1.128405
	=	1.073

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
	=	(-6661.318 - -580.414	-	508.116)	/	42473.946
	=	-0.155131

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.

Peloton Interactive has a M-score of -3.15 suggests that the company is unlikely to be a manipulator.

Peloton Interactive Beneish M-Score Related Terms

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Peloton Interactive Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Peloton Interactive Inc (MEX:PTON) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PTON:USA 1PTON:Italy 0A46:UK 2ON:Germany PTON:Austria

Address

441 Ninth Avenue, Sixth Floor, New York, NY, USA, 10001

Website

https://www.onepeloton.com

Peloton Interactive Inc operates an interactive fitness platform. It operates its business in two reportable segments: Connected Fitness Products and Subscription. Connected Fitness Product revenue consists of bike and tread and related accessories sales, associated fees for delivery and installation, and extended warranty agreements. Subscription revenue is generated from monthly Connected Fitness Subscription and Digital Subscription. The company generates maximum revenue from the Subscription segment. Geographically, the company derives a majority of its revenue from North America and the rest from the International markets.