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Lions Gate Entertainment Beneish M-Score

: -2.28 (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 -2.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:LGF.B' s Beneish M-Score Range Over the Past 10 Years
Min: -3.96   Med: -2.41   Max: 1.3
Current: -2.28

-3.96
1.3

During the past 13 years, the highest Beneish M-Score of Lions Gate Entertainment was 1.30. The lowest was -3.96. And the median was -2.41.


Lions Gate Entertainment Beneish M-Score Historical Data

The historical data trend for Lions Gate 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.

* Premium members only.

Lions Gate Entertainment Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.12 -2.42 -3.00 -3.07 -2.79

Lions Gate Entertainment Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
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 -3.22 -3.27 -3.02 -2.79 -2.28

Competitive Comparison

For the Entertainment subindustry, Lions Gate 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.

   

Lions Gate Entertainment Beneish M-Score Distribution

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

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



Lions Gate 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 Lions Gate Entertainment 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 * 1.1563+0.528 * 0.9491+0.404 * 1.0336+0.892 * 0.8982+0.115 * 0.9917
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0858+4.679 * 0.041-0.327 * 1.0497
=-2.28

* 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 (Jun21) TTM:Last Year (Jun20) TTM:
Accounts Receivable was $447 Mil.
Revenue was 901.2 + 876.5 + 836.4 + 745 = $3,359 Mil.
Gross Profit was 415 + 399.6 + 377.1 + 378.2 = $1,570 Mil.
Total Current Assets was $853 Mil.
Total Assets was $8,213 Mil.
Property, Plant and Equipment(Net PPE) was $218 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,544 Mil.
Selling, General, & Admin. Expense(SGA) was $1,304 Mil.
Total Current Liabilities was $1,556 Mil.
Long-Term Debt & Capital Lease Obligation was $2,954 Mil.
Net Income was -45.4 + -37.7 + -13.9 + -18.4 = $-115 Mil.
Non Operating Income was -30.9 + 35.3 + -5.2 + -20.7 = $-22 Mil.
Cash Flow from Operations was -348.7 + -159.8 + -44.2 + 122.1 = $-431 Mil.
Accounts Receivable was $431 Mil.
Revenue was 813.7 + 944.3 + 998.5 + 983.5 = $3,740 Mil.
Gross Profit was 390.7 + 380.2 + 403.9 + 484.1 = $1,659 Mil.
Total Current Assets was $955 Mil.
Total Assets was $7,756 Mil.
Property, Plant and Equipment(Net PPE) was $276 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,835 Mil.
Selling, General, & Admin. Expense(SGA) was $1,337 Mil.
Total Current Liabilities was $1,330 Mil.
Long-Term Debt & Capital Lease Obligation was $2,727 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(447.2 / 3359.1) / (430.6 / 3740)
=0.1331309 / 0.11513369
=1.1563

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)
=(1658.9 / 3740) / (1569.9 / 3359.1)
=0.44355615 / 0.46735733
=0.9491

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 - (853.3 + 217.7) / 8212.9) / (1 - (954.5 + 276.1) / 7756)
=0.86959539 / 0.84133574
=1.0336

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
=3359.1 / 3740
=0.8982

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))
=(1835 / (1835 + 276.1)) / (1544.3 / (1544.3 + 217.7))
=0.8692151 / 0.87644722
=0.9917

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)
=(1303.5 / 3359.1) / (1336.6 / 3740)
=0.38805037 / 0.35737968
=1.0858

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)
=((2953.7 + 1555.6) / 8212.9) / ((2726.6 + 1330.2) / 7756)
=0.54905088 / 0.52305312
=1.0497

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
=(-115.4 - -21.5 - -430.6) / 8212.9
=0.041

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.

Lions Gate Entertainment has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.


Lions Gate Entertainment Beneish M-Score Related Terms

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Lions Gate Entertainment Business Description

Lions Gate Entertainment logo
Industry
Traded in Other Exchanges
Address
250 Howe Street, 20th Floor, Vancouver, BC, CAN, V6C 3R8
Lions Gate Entertainment Corp is a filmed entertainment studio with a presence in motion pictures, television programming, home entertainment, and digitally delivered content. The company releases more than 25 motion pictures theatrically per year, which includes films developed in-house, as well as films acquired from third parties.
Executives
Sanchez Daniel E. director C/O DISCOVERY, INC. 8403 COLESVILLE ROAD SILVER SPRING MD 20910
Mccaw Susan director LIONSGATE 2700 COLORADO AVENUE SANTA MONICA CA 90404
Crawford Gordon director LIONSGATE 2700 COLORADO AVENUE SANTA MONICA CA 90404
Rachesky Mark H Md director, 10 percent owner 40 WEST 57TH STREET, 24TH FLOOR NEW YORK NY 10019
Fine Emily director 1345 AVENUE OF THE AMERICAS 42ND FLOOR NEW YORK NY 10105
Clyburn Mignon L director 12601 PLANTSIDE DRIVE LOUISVILLE KY 40299
Ostolaza Yvette director LIONSGATE 2700 COLORADO AVENUE SANTA MONICA CA 90404
Simmons Hardwick director 880 CARILLON PARKWAY ST. PETERSBURG FL 33716
Simm Daryl director 437 MADISON AVENUE NEW YORK NY 10022
Barge James W officer: Chief Financial Officer VIACOM INC. 1515 BROADWAY NEW YORK NY 10036
Liberty Global Ventures Ltd 10 percent owner GRIFFIN HOUSE, 161 HAMMERSMITH ROAD LONDON X0 W6 8BS
Liberty Global Plc 10 percent owner 1550 WEWATTA ST, SUITE 1000 DENVER CO 80202
Goldsmith Brian officer: Chief Operating Officer LIONS GATE ENTERTAINMENT CORP. 2700 COLORADO AVENUE SANTA MONICA CA 90292
Evrensel Arthur director C/O 2200-1055 WEST HASTINGS STREET VANCOUVER A1 V6E 2E9
Feltheimer Jon director, officer: Chief Executive Officer 2700 COLORADO AVENUE STE 200 SANTA MONICA CA 90404

Lions Gate Entertainment Headlines

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