Electronic Arts Beneish M-Score Historical Data
The historical data trend for Electronic Arts'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.
|
Electronic Arts Annual Data
|
|
Trend |
Mar14 |
Mar15 |
Mar16 |
Mar17 |
Mar18 |
Mar19 |
Mar20 |
Mar21 |
Mar22 |
Mar23 |
| Beneish M-Score |
|
|
|
|
|
|
-2.17 |
-1.85 |
-2.81 |
-2.49 |
-2.67 |
|
Electronic Arts 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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-2.68 |
-2.67 |
-2.94 |
-2.79 |
-2.86 |
Competitive Comparison
For the Electronic Gaming & Multimedia subindustry, Electronic Arts'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.
Electronic Arts Beneish M-Score Distribution
For the Interactive Media industry and Communication Services sector, Electronic Arts's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Electronic Arts's Beneish M-Score falls into.
Electronic Arts 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 Electronic Arts 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 * 0.9992 | + | 0.528 * 0.9951 | + | 0.404 * 0.9491 | + | 0.892 * 1.038 | + | 0.115 * 1.1018 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0423 | + | 4.679 * -0.082985 | - | 0.327 * 1.0227 |
| = | -2.86 |
* 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 (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $867 Mil.
Revenue was 1945 + 1914 + 1924 + 1874 = $7,657 Mil.
Gross Profit was 1416 + 1458 + 1556 + 1426 = $5,856 Mil.
Total Current Assets was $4,349 Mil.
Total Assets was $13,617 Mil.
Property, Plant and Equipment(Net PPE) was $561 Mil.
Depreciation, Depletion and Amortization(DDA) was $428 Mil.
Selling, General, & Admin. Expense(SGA) was $1,770 Mil.
Total Current Liabilities was $3,280 Mil.
Long-Term Debt & Capital Lease Obligation was $1,881 Mil.
Net Income was 290 + 399 + 402 + -12 = $1,079 Mil.
Non Operating Income was -57 + 26 + -1 + -111 = $-143 Mil.
Cash Flow from Operations was 1264 + 112 + 359 + 617 = $2,352 Mil.
|
Total Receivables was $836 Mil.
Revenue was 1881 + 1904 + 1767 + 1825 = $7,377 Mil.
Gross Profit was 1313 + 1442 + 1453 + 1406 = $5,614 Mil.
Total Current Assets was $3,842 Mil.
Total Assets was $13,470 Mil.
Property, Plant and Equipment(Net PPE) was $553 Mil.
Depreciation, Depletion and Amortization(DDA) was $504 Mil.
Selling, General, & Admin. Expense(SGA) was $1,636 Mil.
Total Current Liabilities was $3,113 Mil.
Long-Term Debt & Capital Lease Obligation was $1,879 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) |
| = | (867 / 7657) | / | (836 / 7377) |
| = | 0.11323 | / | 0.113325 |
| | = | 0.9992 |
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) |
| = | (5614 / 7377) | / | (5856 / 7657) |
| = | 0.761014 | / | 0.76479 |
| | = | 0.9951 |
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 - (4349 + 561) / 13617) | / | (1 - (3842 + 553) / 13470) |
| = | 0.639421 | / | 0.673719 |
| | = | 0.9491 |
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 |
| = | 7657 | / | 7377 |
| | = | 1.038 |
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)) |
| = | (504 / (504 + 553)) | / | (428 / (428 + 561)) |
| = | 0.476821 | / | 0.43276 |
| | = | 1.1018 |
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) |
| = | (1770 / 7657) | / | (1636 / 7377) |
| = | 0.231161 | / | 0.22177 |
| | = | 1.0423 |
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) |
| = | ((1881 + 3280) / 13617) | / | ((1879 + 3113) / 13470) |
| = | 0.379012 | / | 0.370601 |
| | = | 1.0227 |
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 |
| = | (1079 - -143 | - | 2352) | / | 13617 |
| | = | -0.082985 |
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.
Electronic Arts has a M-score of -2.86 suggests that the company is unlikely to be a manipulator.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
Portfolio Contest
EA has been successfully added to your