Electronic Arts Beneish M-Score Historical Data
The historical data trend for Electronic Arts'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.
Electronic Arts Beneish M-Score Chart
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Electronic Arts Annual Data
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Trend |
Mar16 |
Mar17 |
Mar18 |
Mar19 |
Mar20 |
Mar21 |
Mar22 |
Mar23 |
Mar24 |
Mar25 |
| Beneish M-Score |
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-2.81 |
-2.48 |
-2.71 |
-2.96 |
-2.65 |
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Electronic Arts Quarterly Data
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Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
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Dec23 |
Mar24 |
Jun24 |
Sep24 |
Dec24 |
Mar25 |
| Beneish M-Score |
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-2.96 |
-2.94 |
-2.89 |
-2.97 |
-2.65 |
Competitive Comparison of Electronic Arts's Beneish M-Score
For the Electronic Gaming & Multimedia subindustry, Electronic Arts'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.
Electronic Arts's Beneish M-Score Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Electronic Arts's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Electronic Arts's Beneish M-Score falls into.
Electronic Arts 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 Electronic Arts 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 * 1.2177 | + | 0.528 * 0.9756 | + | 0.404 * 1.0738 | + | 0.892 * 0.9869 | + | 0.115 * 1.0886 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0115 | + | 4.679 * -0.076649 | - | 0.327 * 1.0787 |
| = | -2.65 |
* 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 (Mar25) TTM: | Last Year (Mar24) TTM: |
Total Receivables was $679 Mil.
Revenue was 1895 + 1883 + 2025 + 1660 = $7,463 Mil.
Gross Profit was 1527 + 1427 + 1569 + 1397 = $5,920 Mil.
Total Current Assets was $3,276 Mil.
Total Assets was $12,368 Mil.
Property, Plant and Equipment(Net PPE) was $586 Mil.
Depreciation, Depletion and Amortization(DDA) was $356 Mil.
Selling, General, & Admin. Expense(SGA) was $1,707 Mil.
Total Current Liabilities was $3,459 Mil.
Long-Term Debt & Capital Lease Obligation was $1,484 Mil.
Net Income was 254 + 293 + 294 + 280 = $1,121 Mil.
Non Operating Income was 15 + -1 + -22 + -2 = $-10 Mil.
Cash Flow from Operations was 549 + 1176 + 234 + 120 = $2,079 Mil.
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Total Receivables was $565 Mil.
Revenue was 1779 + 1945 + 1914 + 1924 = $7,562 Mil.
Gross Profit was 1422 + 1416 + 1458 + 1556 = $5,852 Mil.
Total Current Assets was $4,247 Mil.
Total Assets was $13,420 Mil.
Property, Plant and Equipment(Net PPE) was $578 Mil.
Depreciation, Depletion and Amortization(DDA) was $404 Mil.
Selling, General, & Admin. Expense(SGA) was $1,710 Mil.
Total Current Liabilities was $3,090 Mil.
Long-Term Debt & Capital Lease Obligation was $1,882 Mil.
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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) |
| = | (679 / 7463) | / | (565 / 7562) |
| = | 0.090982 | / | 0.074716 |
| | = | 1.2177 |
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) |
| = | (5852 / 7562) | / | (5920 / 7463) |
| = | 0.773869 | / | 0.793247 |
| | = | 0.9756 |
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 - (3276 + 586) / 12368) | / | (1 - (4247 + 578) / 13420) |
| = | 0.687743 | / | 0.640462 |
| | = | 1.0738 |
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 |
| = | 7463 | / | 7562 |
| | = | 0.9869 |
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)) |
| = | (404 / (404 + 578)) | / | (356 / (356 + 586)) |
| = | 0.411405 | / | 0.377919 |
| | = | 1.0886 |
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) |
| = | (1707 / 7463) | / | (1710 / 7562) |
| = | 0.228728 | / | 0.226131 |
| | = | 1.0115 |
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) |
| = | ((1484 + 3459) / 12368) | / | ((1882 + 3090) / 13420) |
| = | 0.39966 | / | 0.370492 |
| | = | 1.0787 |
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 |
| = | (1121 - -10 | - | 2079) | / | 12368 |
| | = | -0.076649 |
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.
Electronic Arts has a M-score of -2.65 suggests that the company is unlikely to be a manipulator.
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