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PENN Entertainment (NAS:PENN) Beneish M-Score

: -2.35 (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 -2.35 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PENN' s Beneish M-Score Range Over the Past 10 Years
Min: -7.35   Med: -2.5   Max: -0.25
Current: -2.35

During the past 13 years, the highest Beneish M-Score of PENN Entertainment was -0.25. The lowest was -7.35. And the median was -2.50.


PENN Entertainment Beneish M-Score Historical Data

The historical data trend for PENN 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.

PENN Entertainment Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -1.92 -2.75 -2.51 -1.58 -

PENN Entertainment Quarterly Data
Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22
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 -1.58 -2.21 -2.20 -2.35 -

Competitive Comparison

For the Resorts & Casinos subindustry, PENN 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.

   

PENN Entertainment Beneish M-Score Distribution

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

* The bar in red indicates where PENN Entertainment's Beneish M-Score falls in comparison to its industry or sector. The grey bar indicates the Beneish M-Score's extreme value range as defined by GuruFocus.



PENN 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 PENN 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 * 0.8482+0.528 * 1.1325+0.404 * 1.3154+0.892 * 1.1919+0.115 * 0.752
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7498+4.679 * -0.0249-0.327 * 0.9963
=-2.35

* 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 (Sep22) TTM:Last Year (Sep21) TTM:
Total Receivables was $156 Mil.
Revenue was 1625 + 1626.9 + 1564.2 + 1572.5 = $6,389 Mil.
Gross Profit was 667.9 + 726.5 + 705.7 + 657.4 = $2,758 Mil.
Total Current Assets was $2,059 Mil.
Total Assets was $17,535 Mil.
Property, Plant and Equipment(Net PPE) was $10,626 Mil.
Depreciation, Depletion and Amortization(DDA) was $515 Mil.
Selling, General, & Admin. Expense(SGA) was $1,181 Mil.
Total Current Liabilities was $1,148 Mil.
Long-Term Debt & Capital Lease Obligation was $12,607 Mil.
Net Income was 123.5 + 26.1 + 51.7 + 45 = $246 Mil.
Non Operating Income was -106.8 + -26.4 + -32 + -29.7 = $-195 Mil.
Cash Flow from Operations was 323.6 + 211.5 + 224.9 + 117.1 = $877 Mil.
Total Receivables was $154 Mil.
Revenue was 1511.8 + 1545.8 + 1274.9 + 1027.4 = $5,360 Mil.
Gross Profit was 699.3 + 776.3 + 624 + 520.4 = $2,620 Mil.
Total Current Assets was $3,039 Mil.
Total Assets was $15,749 Mil.
Property, Plant and Equipment(Net PPE) was $9,398 Mil.
Depreciation, Depletion and Amortization(DDA) was $338 Mil.
Selling, General, & Admin. Expense(SGA) was $1,321 Mil.
Total Current Liabilities was $1,078 Mil.
Long-Term Debt & Capital Lease Obligation was $11,322 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)
=(155.8 / 6388.6) / (154.1 / 5359.9)
=0.02438719 / 0.02875054
=0.8482

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)
=(2620 / 5359.9) / (2757.5 / 6388.6)
=0.48881509 / 0.43162821
=1.1325

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 - (2058.5 + 10626.1) / 17535.1) / (1 - (3039.1 + 9397.9) / 15748.7)
=0.27661661 / 0.21028402
=1.3154

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
=6388.6 / 5359.9
=1.1919

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))
=(338.3 / (338.3 + 9397.9)) / (514.8 / (514.8 + 10626.1))
=0.03474662 / 0.04620812
=0.752

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)
=(1180.9 / 6388.6) / (1321.3 / 5359.9)
=0.18484488 / 0.24651579
=0.7498

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)
=((12607.3 + 1148.3) / 17535.1) / ((11322.1 + 1077.7) / 15748.7)
=0.78446088 / 0.78735388
=0.9963

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
=(246.3 - -194.9 - 877.1) / 17535.1
=-0.0249

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.

PENN Entertainment has a M-score of -2.35 suggests that the company is unlikely to be a manipulator.


PENN Entertainment Beneish M-Score Related Terms

Thank you for viewing the detailed overview of PENN Entertainment's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


PENN Entertainment (NAS:PENN) Business Description

PENN Entertainment logo
Traded in Other Exchanges
Address
825 Berkshire Boulevard, Suite 200, Wyomissing, PA, USA, 19610
PENN Entertainment Inc provides integrated entertainment, sports content, and casino gaming experiences. It is the operator of gaming and racing properties and video gaming terminal operations in the U.S. It operates retail sports betting across the company's portfolio, as well as online sports betting, online social casino, bingo, and online casinos.
Executives
Gupta Vimla Black director 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Felicia Hendrix officer: EVP and CFO 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Todd George officer: EVP, Operations 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Marla Kaplowitz director 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Christine Labombard officer: SVP and CAO 825 BERKSHIRE BOULEVARD, WYOMISSING PA 19610
Ronald J Naples director 96 S. GEORGE STREET, SUITE 500, YORK PA 17401
Jane Scaccetti director 3111 W ALLEGHENY AVE, PHILADELPHIA PA 19132
Christopher Byron Rogers officer: EVP and Chief Strategy Officer 825 BERKSHIRE BLVD., WYOMISSING PA 19610
Harper H. Ko officer: EVP, CLO and Sec. 7250 S. TENAYA WAY, SUITE 100, LAS VEGAS NV 89113
David Edward Williams officer: EVP and CFO 825 BERKSHIRE BOULEVARD, WYOMISSING PA 19610
Saul Reibstein officer: EVP-Finance, CFO & Treasurer C/O VISHAY PRECISION GROUP, INC., 3 GREAT VALLEY PARKWAY, SUITE 150, MALVERN PA 19355
Carl Sottosanti officer: SVP,Gen Counsel & Secretary 825 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610
Jay A Snowden officer: EVP-Chief Operating Officer 825 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610
William J Fair officer: EVP - Chief Dev Officer 825 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610
Desiree A. Burke officer: V. P. and Chief Accounting Off 845 BERKSHIRE BOULEVARD, SUITE 200, WYOMISSING PA 19610

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