Eros Media World PLC
EMWP Communication Services Entertainment
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Eros Media World PLC (EMWP) Beneish M-score
Eros Media World PLC's Beneish M-score for fiscal 2020 is −7.28; values above −1.78 are the model's flag for possible earnings manipulation — a statistical screen, not a finding.
Beneish M-score, annual
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Annual newest first
| Period | Beneish M-score | Change (points) |
|---|---|---|
| FY2020 | −7.28 | (2.42) |
| FY2019 | −4.85 | (1.98) |
| FY2018 | −2.87 | (0.42) |
| FY2017 | −2.45 | 0.89 |
| FY2016 | −3.34 | — |
How fiscal 2020’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Days’ sales in receivables index | 0.91 | — | 0.84 | |
| Gross margin index | 0.90 | — | 0.47 | |
| Asset quality index | 1.18 | — | 0.48 | |
| Sales growth index | 0.58 | — | 0.51 | |
| Depreciation index | 1.05 | — | 0.12 | |
| SG&A index | 2.88 | — | −0.50 | |
| Total accruals to total assets | (0.84) | — | −3.93 | |
| Leverage index | 1.32 | — | −0.43 | |
| Beneish M-score | Low — no pattern the model associates with manipulation | −7.28 | ||
How the Beneish M-score works
M = −4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI (Beneish, 1999): eight changes in the accounts from one fiscal year to the next, which the model weighs for the pattern seen in companies that later restated their earnings. Higher is worse.
| below −2.22 | Low — no pattern the model associates with manipulation |
|---|---|
| −2.22 to −1.78 | Elevated |
| above −1.78 | Flagged by the model |
−1.78 is the cut-off usually quoted from the paper, −2.22 a common conservative one. A statistical screen, not a finding of wrongdoing.
When asset quality, depreciation or SG&A cannot be worked out, that index is set to 1, as Beneish did, and the breakdown says so; with all three missing there is no score. Depreciation includes amortisation, and asset quality leaves out securities. Not worked out for banks, insurers and REITs.
Beneish M-score against peers
| Company | Beneish M-score |
|---|---|
| EMWP Eros Media World PLC | −7.3× |
| IMAX IMAX Corporation compare | −2.9× |
| MCS Marcus Corporation (The) compare | −2.9× |
| AMC AMC Entertainment Holdings, Inc. compare | −2.9× |
| AMCX AMC Global Media Inc. compare | −2.7× |
| ANGX Angel Studios, Inc. compare | −2.7× |
| RSVR Reservoir Media, Inc. compare | −2.6× |
| IQ iQIYI, Inc. Sponsored ADR compare | −2.3× |
| STRZ Starz Entertainment Corp. compare | −1.4× |
What Beneish M-score is
The Beneish M-Score combines eight year-on-year changes in the accounts into a statistical screen for patterns seen in companies that overstated earnings.
−4.84 + 0.920 × DSRI + 0.528 × GMI + 0.404 × AQI + 0.892 × SGI + 0.115 × DEPI − 0.172 × SGAI + 4.679 × TATA − 0.327 × LVGI