Reddit Beneish M-Score Historical Data
The historical data trend for Reddit'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.
Reddit Beneish M-Score Chart
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Reddit Annual Data
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Trend |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
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- |
- |
-1.45 |
-2.60 |
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Reddit Quarterly Data
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Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
Mar24 |
Jun24 |
Sep24 |
| Beneish M-Score |
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-2.72 |
-2.60 |
- |
- |
-3.81 |
Competitive Comparison of Reddit's Beneish M-Score
For the Internet Content & Information subindustry, Reddit'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.
Reddit's Beneish M-Score Distribution in the Interactive Media Industry
For the Interactive Media industry and Communication Services sector, Reddit's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Reddit's Beneish M-Score falls into.
Reddit 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 Reddit 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 * 0.9941 | + | 0.528 * 0.9564 | + | 0.404 * 0.6609 | + | 0.892 * 1.487 | + | 0.115 * 0.8833 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.3202 | + | 4.679 * -0.334356 | - | 0.327 * 0.8844 |
| = | -3.81 |
* 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 (Sep24) TTM: | Last Year (Sep23) TTM: |
Total Receivables was $294 Mil.
Revenue was 348.351 + 281.184 + 242.963 + 249.75 = $1,122 Mil.
Gross Profit was 313.718 + 251.683 + 215.347 + 220.833 = $1,002 Mil.
Total Current Assets was $2,061 Mil.
Total Assets was $2,172 Mil.
Property, Plant and Equipment(Net PPE) was $38 Mil.
Depreciation, Depletion and Amortization(DDA) was $15 Mil.
Selling, General, & Admin. Expense(SGA) was $754 Mil.
Total Current Liabilities was $172 Mil.
Long-Term Debt & Capital Lease Obligation was $22 Mil.
Net Income was 29.853 + -10.099 + -575.066 + 18.534 = $-537 Mil.
Non Operating Income was 22.968 + 20.724 + 14.554 + 16.461 = $75 Mil.
Cash Flow from Operations was 71.622 + 28.385 + 32.064 + -17.433 = $115 Mil.
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Total Receivables was $199 Mil.
Revenue was 207.508 + 183.031 + 163.74 + 200.428 = $755 Mil.
Gross Profit was 181.113 + 154.195 + 136.877 + 172.014 = $644 Mil.
Total Current Assets was $1,437 Mil.
Total Assets was $1,556 Mil.
Property, Plant and Equipment(Net PPE) was $39 Mil.
Depreciation, Depletion and Amortization(DDA) was $13 Mil.
Selling, General, & Admin. Expense(SGA) was $384 Mil.
Total Current Liabilities was $134 Mil.
Long-Term Debt & Capital Lease Obligation was $23 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) |
| = | (293.918 / 1122.248) | / | (198.832 / 754.707) |
| = | 0.261901 | / | 0.263456 |
| | = | 0.9941 |
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) |
| = | (644.199 / 754.707) | / | (1001.581 / 1122.248) |
| = | 0.853575 | / | 0.892477 |
| | = | 0.9564 |
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 - (2060.831 + 37.647) / 2171.708) | / | (1 - (1437.165 + 39.016) / 1555.546) |
| = | 0.03372 | / | 0.051021 |
| | = | 0.6609 |
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 |
| = | 1122.248 | / | 754.707 |
| | = | 1.487 |
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)) |
| = | (13.32 / (13.32 + 39.016)) | / | (15.237 / (15.237 + 37.647)) |
| = | 0.254509 | / | 0.288121 |
| | = | 0.8833 |
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) |
| = | (753.93 / 1122.248) | / | (384.053 / 754.707) |
| = | 0.671803 | / | 0.508877 |
| | = | 1.3202 |
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) |
| = | ((21.567 + 172.284) / 2171.708) | / | ((23.196 + 133.796) / 1555.546) |
| = | 0.089262 | / | 0.100924 |
| | = | 0.8844 |
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 |
| = | (-536.778 - 74.707 | - | 114.638) | / | 2171.708 |
| | = | -0.334356 |
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.
Reddit has a M-score of -3.81 suggests that the company is unlikely to be a manipulator.
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