Mood Media (LSE:MM.) Beneish M-Score : -3.50 (As of May. 11, 2024)

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What is Mood Media 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 Mood Media's Beneish M-Score or its related term are showing as below:

LSE:MM.' s Beneish M-Score Range Over the Past 10 Years
Min: -3.6 Med: -2.79 Max: 14.89
Current: -3.5

During the past 10 years, the highest Beneish M-Score of Mood Media was 14.89. The lowest was -3.60. And the median was -2.79.

Mood Media Beneish M-Score Historical Data

The historical data trend for Mood Media'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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Mood Media Beneish M-Score Chart

Mood Media Annual Data

Trend

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Beneish M-Score

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-2.60

-3.03

-3.02

-2.94

-3.41

Mood Media Quarterly Data
	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17
Beneish M-Score	Get a 7-Day Free Trial															-3.18	-3.18	-3.34	-3.41	-3.50

Competitive Comparison of Mood Media's Beneish M-Score

For the Advertising Agencies subindustry, Mood Media'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.

Mood Media's Beneish M-Score Distribution in the Media - Diversified Industry

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

* The bar in red indicates where Mood Media's Beneish M-Score falls into.

Mood Media 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 Mood Media 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 * 0.8672

0.528 * 1.0002

0.404 * 0.9981

0.892 * 1.1348

0.115 * 0.9787

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * -2.8266

4.679 * -0.188786

0.327 * 1.0929

-2.74

This Year (Mar17) TTM:

Last Year (Mar16) TTM:

Total Receivables was £60.9 Mil.
Revenue was 89.297 + 96.404 + 86.689 + 84.248 = £356.6 Mil.
Gross Profit was 46.085 + 50.187 + 44.852 + 43.586 = £184.7 Mil.
Total Current Assets was £118.8 Mil.
Total Assets was £474.0 Mil.
Property, Plant and Equipment(Net PPE) was £33.0 Mil.
Depreciation, Depletion and Amortization(DDA) was £47.7 Mil.
Selling, General, & Admin. Expense(SGA) was £-5.2 Mil.
Total Current Liabilities was £105.1 Mil.
Long-Term Debt & Capital Lease Obligation was £495.0 Mil.
Net Income was -7.667 + -23.174 + -5.712 + -8.392 = £-44.9 Mil.
Non Operating Income was -0.39 + -16.595 + -0.74 + -4.491 = £-22.2 Mil.
Cash Flow from Operations was 12.411 + 23.202 + 15.817 + 15.325 = £66.8 Mil.

Total Receivables was £61.9 Mil.
Revenue was 78.157 + 83.523 + 77.04 + 75.543 = £314.3 Mil.
Gross Profit was 41.679 + 41.838 + 40.018 + 39.259 = £162.8 Mil.
Total Current Assets was £112.7 Mil.
Total Assets was £454.3 Mil.
Property, Plant and Equipment(Net PPE) was £32.2 Mil.
Depreciation, Depletion and Amortization(DDA) was £44.3 Mil.
Selling, General, & Admin. Expense(SGA) was £1.6 Mil.
Total Current Liabilities was £96.7 Mil.
Long-Term Debt & Capital Lease Obligation was £429.6 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)
	=	(60.917 / 356.638)	/	(61.902 / 314.263)
	=	0.170809	/	0.196975
	=	0.8672

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)
	=	(162.794 / 314.263)	/	(184.71 / 356.638)
	=	0.518018	/	0.51792
	=	1.0002

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 - (118.812 + 32.952) / 473.998)	/	(1 - (112.658 + 32.204) / 454.311)
	=	0.679821	/	0.681139
	=	0.9981

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
	=	356.638	/	314.263
	=	1.1348

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))
	=	(44.265 / (44.265 + 32.204))	/	(47.704 / (47.704 + 32.952))
	=	0.578862	/	0.59145
	=	0.9787

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)
	=	(-5.222 / 356.638)	/	(1.628 / 314.263)
	=	-0.014642	/	0.00518
	=	-2.8266

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)
	=	((495.039 + 105.074) / 473.998)	/	((429.612 + 96.706) / 454.311)
	=	1.266067	/	1.158497
	=	1.0929

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
	=	(-44.945 - -22.216	-	66.755)	/	473.998
	=	-0.188786

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.

Mood Media has a M-score of -2.74 suggests that the company is unlikely to be a manipulator.

Mood Media Beneish M-Score Related Terms

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Mood Media (LSE:MM.) Business Description

Industry

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Address

Website

http://www.moodmedia.com

Mood Media Corp was continued under the Canada Business Corporations Act on June 17, 2008 under the name Fluid Music Canada, Inc. On June 28, 2010, the Company changed its name to Mood Media Corporation. The Company provides in-store audio, visual, mobile, social and scent marketing solutions to businesses including specialist retailers, department stores, supermarkets, financial institutions and fitness clubs, as well as hotels, car dealerships and restaurants. Proprietary technology and software are used to deploy music from a compiled music library to client sites. This library comes from a diverse network of producers including major labels and independent and emerging artists. The Company reports its continuing operations in three reportable segments, In-store media - International, In-store media - North America, and BIS based on the significant business activity of the Company and its subsidiaries.

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