Regal Entertainment Group (STU:RETA) Beneish M-Score : -2.87 (As of Jun. 21, 2024)

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What is Regal Entertainment Group Beneish M-Score?

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.

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

STU:RETA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.41 Med: -2.9 Max: -2.51
Current: -2.87

During the past 13 years, the highest Beneish M-Score of Regal Entertainment Group was -2.51. The lowest was -3.41. And the median was -2.90.

Regal Entertainment Group Beneish M-Score Historical Data

The historical data trend for Regal Entertainment Group'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.

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Regal Entertainment Group Beneish M-Score Chart

Regal Entertainment Group Annual Data

Trend

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Beneish M-Score

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-2.64

-2.90

-2.97

-2.87

Regal Entertainment Group Quarterly Data
	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17
Beneish M-Score	Get a 7-Day Free Trial															-2.97	-2.99	-2.61	-2.83	-2.87

Competitive Comparison of Regal Entertainment Group's Beneish M-Score

For the Broadcasting subindustry, Regal Entertainment Group'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.

Regal Entertainment Group's Beneish M-Score Distribution in the Media - Diversified Industry

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

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

Regal Entertainment Group 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 Regal Entertainment Group for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1042

0.528 * 0.9893

0.404 * 0.997

0.892 * 0.9576

0.115 * 0.9375

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0127

4.679 * -0.1266

0.327 * 0.9876

-3.03

This Year (Dec17) TTM:

Last Year (Dec16) TTM:

Total Receivables was €155 Mil.
Revenue was 728.052 + 600.724 + 680.138 + 767.822 = €2,777 Mil.
Gross Profit was 454.525 + 378.473 + 422.839 + 474.325 = €1,730 Mil.
Total Current Assets was €391 Mil.
Total Assets was €2,402 Mil.
Property, Plant and Equipment(Net PPE) was €1,279 Mil.
Depreciation, Depletion and Amortization(DDA) was €219 Mil.
Selling, General, & Admin. Expense(SGA) was €450 Mil.
Total Current Liabilities was €474 Mil.
Long-Term Debt & Capital Lease Obligation was €2,045 Mil.
Net Income was 24.42 + 9.565 + 21.004 + 45.254 = €100 Mil.
Non Operating Income was 1.605 + 17.871 + 11.125 + 7.106 = €38 Mil.
Cash Flow from Operations was 130.383 + 40.104 + -37.202 + 233.376 = €367 Mil.

Total Receivables was €147 Mil.
Revenue was 770.345 + 723.046 + 699.451 + 706.816 = €2,900 Mil.
Gross Profit was 481.489 + 449.599 + 424.53 + 431.758 = €1,787 Mil.
Total Current Assets was €424 Mil.
Total Assets was €2,508 Mil.
Property, Plant and Equipment(Net PPE) was €1,318 Mil.
Depreciation, Depletion and Amortization(DDA) was €209 Mil.
Selling, General, & Admin. Expense(SGA) was €464 Mil.
Total Current Liabilities was €494 Mil.
Long-Term Debt & Capital Lease Obligation was €2,170 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)
	=	(155.48 / 2776.736)	/	(147.035 / 2899.658)
	=	0.055994	/	0.050708
	=	1.1042

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)
	=	(1787.376 / 2899.658)	/	(1730.162 / 2776.736)
	=	0.616409	/	0.623092
	=	0.9893

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 - (391.488 + 1278.654) / 2402.25)	/	(1 - (423.661 + 1317.815) / 2508.124)
	=	0.304759	/	0.305666
	=	0.997

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
	=	2776.736	/	2899.658
	=	0.9576

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))
	=	(209.284 / (209.284 + 1317.815))	/	(218.933 / (218.933 + 1278.654))
	=	0.137047	/	0.146191
	=	0.9375

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)
	=	(450.44 / 2776.736)	/	(464.469 / 2899.658)
	=	0.162219	/	0.160181
	=	1.0127

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)
	=	((2045.407 + 474.383) / 2402.25)	/	((2169.782 + 494.192) / 2508.124)
	=	1.048929	/	1.062138
	=	0.9876

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
	=	(100.243 - 37.707	-	366.661)	/	2402.25
	=	-0.1266

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.

Regal Entertainment Group has a M-score of -3.03 suggests that the company is unlikely to be a manipulator.

Regal Entertainment Group Beneish M-Score Related Terms

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Regal Entertainment Group (STU:RETA) Business Description

Industry

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Address

Website

http://www.regmovies.com

Regal is the largest movie theater circuit in the United States.Â It operates more than 6,300 screens in 39 states, including 44 of the top 50 designated market areas. Regal generated nearly $3 billion of revenue, approximately 70% of which was from ticket sales, 25% from concessions sales, and the remaining 5% from other streams, such as on-screen advertising and in-lobby video games. Most of Regal's theaters are located in midsize cities and suburban areas of larger cities.