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Take-Two Interactive Software Beneish M-Score

: -2.17 (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 -2.17 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:

TTWO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.55   Med: -2.48   Max: 3.18
Current: -2.17

During the past 13 years, the highest Beneish M-Score of Take-Two Interactive Software was 3.18. The lowest was -3.55. And the median was -2.48.


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.

* Premium members only.

Take-Two Interactive Software Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.64 -2.48 -2.42 -2.79 -2.17

Take-Two Interactive Software Quarterly Data
Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22
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 -2.79 -2.71 -2.57 -1.98 -2.17

Competitive Comparison

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 Beneish M-Score Distribution

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:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.0088+0.528 * 0.9696+0.404 * 1.3662+0.892 * 1.0391+0.115 * 1.1256
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.183+4.679 * 0.0248-0.327 * 0.8908
=-2.17

* 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 (Mar22) TTM:Last Year (Mar21) TTM:
Total Receivables was $579 Mil.
Revenue was 930.004 + 903.252 + 858.198 + 813.346 = $3,505 Mil.
Gross Profit was 531.379 + 552.873 + 401.516 + 483.631 = $1,969 Mil.
Total Current Assets was $3,871 Mil.
Total Assets was $6,546 Mil.
Property, Plant and Equipment(Net PPE) was $459 Mil.
Depreciation, Depletion and Amortization(DDA) was $279 Mil.
Selling, General, & Admin. Expense(SGA) was $1,027 Mil.
Total Current Liabilities was $2,105 Mil.
Long-Term Debt & Capital Lease Obligation was $211 Mil.
Net Income was 110.972 + 144.497 + 10.297 + 152.256 = $418 Mil.
Non Operating Income was -7.631 + 3.539 + 0.069 + 1.9 = $-2 Mil.
Cash Flow from Operations was 238.823 + -264.518 + 135.437 + 148.242 = $258 Mil.
Total Receivables was $553 Mil.
Revenue was 839.431 + 860.889 + 841.142 + 831.31 = $3,373 Mil.
Gross Profit was 559.784 + 514.645 + 408.637 + 354.621 = $1,838 Mil.
Total Current Assets was $4,221 Mil.
Total Assets was $6,028 Mil.
Property, Plant and Equipment(Net PPE) was $314 Mil.
Depreciation, Depletion and Amortization(DDA) was $233 Mil.
Selling, General, & Admin. Expense(SGA) was $836 Mil.
Total Current Liabilities was $2,235 Mil.
Long-Term Debt & Capital Lease Obligation was $160 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)
=(579.433 / 3504.8) / (552.762 / 3372.772)
=0.16532555 / 0.16388952
=1.0088

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)
=(1837.687 / 3372.772) / (1969.399 / 3504.8)
=0.54485954 / 0.5619148
=0.9696

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 - (3871.088 + 459.245) / 6546.219) / (1 - (4220.515 + 314.127) / 6028.218)
=0.33849861 / 0.2477641
=1.3662

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
=3504.8 / 3372.772
=1.0391

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))
=(232.813 / (232.813 + 314.127)) / (279.292 / (279.292 + 459.245))
=0.42566461 / 0.37816927
=1.1256

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)
=(1027.284 / 3504.8) / (835.668 / 3372.772)
=0.29310774 / 0.2477689
=1.183

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)
=((211.297 + 2104.964) / 6546.219) / ((159.671 + 2234.715) / 6028.218)
=0.35383188 / 0.39719632
=0.8908

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
=(418.022 - -2.123 - 257.984) / 6546.219
=0.0248

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 -2.17 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 Business Description

Take-Two Interactive Software logo
Address
110 West 44th Street, New York, NY, USA, 10036
Found in 1993, Take-Two consists of two wholly owned labels, Rockstar Games and 2K. 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."
Executives
Gordon William B director
Siminoff Ellen F director 555 ELLIS STREET MOUNTAIN VIEW CA 94043
Hernandez Roland A director 300 NORTH SAN RAFAEL AVE PASADENA CA 91105
Viera Paul E director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 110 WEST 44TH STREET NEW YORK NY 10036
Srinivasan Laverne Evans director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 622 BROADWAY NEW YORK NY 10012
Emerson Daniel P officer: General Counsel 622 BROADWAY NEW YORK NY 10012
Tolson Susan director C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 622 BROADWAY NEW YORK NY 10019
Feder Benjamim officer: Chief Executive Officer C/O ZELNICKMEDIA CORPORATION 650 5TH AVENUE NEW YORK NY 10019
Slatoff Karl officer: Executive Vice President C/O ZELNICKMEDIA CORPORATION 19 WEST 44TH STREET, 18TH FLOOR NEW YORK NY 10036
Icahn Brett director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Nelson James Larry director 2747 PARADISE ROAD PH2804 LAS VEGAS NV 89109
Cho Sunghwan director C/O ICAHN ENTERPRISES L.P. 16690 COLLINS AVE., PH SUNNY ISLES FL 33160
Zelnick Strauss director, officer: Executive Chairman C/O ZELNICKMEDIA 650 FIFTH AVE 31ST FLOOR NEW YORK NY 10019
Goldstein Lainie officer: Chief Financial Officer C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 622 BROADWAY NEW YORK NY 10012
Krauss Seth D officer: Exec VP and General Counsel C/O TAKE-TWO INTERACTIVE SOFTWARE, INC. 222 BROADWAY NEW YORK NY 10012

Take-Two Interactive Software Headlines

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