Melco Crown Entertainment (HKSE:06883) Beneish M-Score : -1.55 (As of May. 01, 2024)

View and export this data going back to . Start your Free Trial

What is Melco Crown Entertainment 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.

Warning Sign:

Beneish M-Score -1.55 higher than -1.78, which implies that the company might have manipulated its financial results.

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

HKSE:06883' s Beneish M-Score Range Over the Past 10 Years
Min: -3.71 Med: -2.46 Max: -1.55
Current: -1.55

During the past 13 years, the highest Beneish M-Score of Melco Crown Entertainment was -1.55. The lowest was -3.71. And the median was -2.46.

Melco Crown Entertainment Beneish M-Score Historical Data

The historical data trend for Melco Crown 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.

Melco Crown Entertainment Beneish M-Score Chart

Melco Crown Entertainment Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.24

-2.21

-3.71

-2.66

-1.55

Melco Crown Entertainment Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.66	-2.48	-3.10	-2.45	-1.55

Competitive Comparison of Melco Crown Entertainment's Beneish M-Score

For the Resorts & Casinos subindustry, Melco Crown 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.

Melco Crown Entertainment's Beneish M-Score Distribution in the Travel & Leisure Industry

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

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

Melco Crown 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 Melco Crown Entertainment 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 * 0.5853

0.528 * 0.5671

0.404 * 1.0575

0.892 * 2.7981

0.115 * 0.9113

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.4124

4.679 * -0.03478

0.327 * 1.0312

-1.55

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was HK$722 Mil.
Revenue was 8540.899 + 7963.268 + 7425.206 + 5623.437 = HK$29,553 Mil.
Gross Profit was 3188.468 + 3010.356 + 2741.887 + 2116.951 = HK$11,058 Mil.
Total Current Assets was HK$12,061 Mil.
Total Assets was HK$65,095 Mil.
Property, Plant and Equipment(Net PPE) was HK$43,767 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4,254 Mil.
Selling, General, & Admin. Expense(SGA) was HK$3,822 Mil.
Total Current Liabilities was HK$8,619 Mil.
Long-Term Debt & Capital Lease Obligation was HK$60,244 Mil.
Net Income was -1607.944 + -127.628 + -183.613 + -638.005 = HK$-2,557 Mil.
Non Operating Income was 27.311 + -105.677 + -110.68 + -104.16 = HK$-293 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 0 = HK$0 Mil.

Total Receivables was HK$441 Mil.
Revenue was 2624.365 + 1898.275 + 2323.877 + 3715.4 = HK$10,562 Mil.
Gross Profit was 562.153 + 272.727 + 429.919 + 976.199 = HK$2,241 Mil.
Total Current Assets was HK$16,152 Mil.
Total Assets was HK$72,418 Mil.
Property, Plant and Equipment(Net PPE) was HK$46,516 Mil.
Depreciation, Depletion and Amortization(DDA) was HK$4,085 Mil.
Selling, General, & Admin. Expense(SGA) was HK$3,312 Mil.
Total Current Liabilities was HK$9,332 Mil.
Long-Term Debt & Capital Lease Obligation was HK$64,962 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)
	=	(721.899 / 29552.81)	/	(440.825 / 10561.917)
	=	0.024427	/	0.041737
	=	0.5853

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)
	=	(2240.998 / 10561.917)	/	(11057.662 / 29552.81)
	=	0.212177	/	0.374166
	=	0.5671

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 - (12060.612 + 43766.58) / 65095.245)	/	(1 - (16152.151 + 46515.554) / 72418.109)
	=	0.142377	/	0.13464
	=	1.0575

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
	=	29552.81	/	10561.917
	=	2.7981

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))
	=	(4085.172 / (4085.172 + 46515.554))	/	(4254.336 / (4254.336 + 43766.58))
	=	0.080733	/	0.088593
	=	0.9113

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)
	=	(3821.637 / 29552.81)	/	(3311.509 / 10561.917)
	=	0.129316	/	0.313533
	=	0.4124

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)
	=	((60244.422 + 8619.051) / 65095.245)	/	((64962.398 + 9331.783) / 72418.109)
	=	1.057888	/	1.025906
	=	1.0312

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
	=	(-2557.19 - -293.206	-	0)	/	65095.245
	=	-0.03478

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.

Melco Crown Entertainment has a M-score of -1.55 signals that the company is likely to be a manipulator.

Melco Crown Entertainment Beneish M-Score Related Terms

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

Melco Crown Entertainment (HKSE:06883) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Travel & Leisure » Melco Crown Entertainment Ltd (HKSE:06883) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

MLCO:USA 0A2P:UK MAS:Germany M1LC34:Brazil

Address

60 Wyndham Street, 38th Floor, The Centrium, Central, Hong Kong, HKG

Website

https://www.melco-resorts.com

Melco Resorts & Entertainment is one of only six licensed casino operators in Macao. It operates Altira, a complex focused on VIP customers; City of Dreams, an integrated resort in Cotai serving both mass-market and premium patrons; and Mocha Clubs electronic gaming machines. The company also has a majority interest in Studio City, which opened in 2015. Outside Macao, Melco owns City of Dreams Manila in the Philippines and City of Dreams Mediterranean in Cyprus. The business mix in terms of adjusted EBITDA was about 84% from Macao with the rest largely from the Philippines as of 2019.

Melco Crown Entertainment (HKSE:06883) Headlines

No Headlines