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News (NWSA) Beneish M-Score : -2.63 (As of Oct. 31, 2024)


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What is News 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.

Good Sign:

Beneish M-Score -2.63 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NWSA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.86   Med: -2.66   Max: -2.54
Current: -2.63

During the past 13 years, the highest Beneish M-Score of News was -2.54. The lowest was -2.86. And the median was -2.66.


News Beneish M-Score Historical Data

The historical data trend for News'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.

News Beneish M-Score Chart

News Annual Data
Trend Jun15 Jun16 Jun17 Jun18 Jun19 Jun20 Jun21 Jun22 Jun23 Jun24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.86 -2.54 -2.64 -2.72 -2.63

News Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.72 -2.61 -2.76 -2.77 -2.63

Competitive Comparison of News's Beneish M-Score

For the Entertainment subindustry, News'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.


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

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

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



News 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 News 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 * 1.0332+0.528 * 1+0.404 * 0.9779+0.892 * 1.0209+0.115 * 0.925
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.026+4.679 * -0.039439-0.327 * 0.9727
=-2.63

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $1,503 Mil.
Revenue was 2577 + 2423 + 2586 + 2499 = $10,085 Mil.
Gross Profit was 2577 + 2423 + 2586 + 2499 = $10,085 Mil.
Total Current Assets was $4,372 Mil.
Total Assets was $16,684 Mil.
Property, Plant and Equipment(Net PPE) was $2,872 Mil.
Depreciation, Depletion and Amortization(DDA) was $734 Mil.
Selling, General, & Admin. Expense(SGA) was $3,493 Mil.
Total Current Liabilities was $3,055 Mil.
Long-Term Debt & Capital Lease Obligation was $3,882 Mil.
Net Income was 50 + 30 + 156 + 30 = $266 Mil.
Non Operating Income was -60 + -47 + 8 + -75 = $-174 Mil.
Cash Flow from Operations was 254 + 539 + 360 + -55 = $1,098 Mil.
Total Receivables was $1,425 Mil.
Revenue was 2433 + 2447 + 2521 + 2478 = $9,879 Mil.
Gross Profit was 2433 + 2447 + 2521 + 2478 = $9,879 Mil.
Total Current Assets was $4,053 Mil.
Total Assets was $16,921 Mil.
Property, Plant and Equipment(Net PPE) was $3,078 Mil.
Depreciation, Depletion and Amortization(DDA) was $714 Mil.
Selling, General, & Admin. Expense(SGA) was $3,335 Mil.
Total Current Liabilities was $3,165 Mil.
Long-Term Debt & Capital Lease Obligation was $4,068 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)
=(1503 / 10085) / (1425 / 9879)
=0.149033 / 0.144245
=1.0332

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)
=(9879 / 9879) / (10085 / 10085)
=1 / 1
=1

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 - (4372 + 2872) / 16684) / (1 - (4053 + 3078) / 16921)
=0.565812 / 0.578571
=0.9779

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
=10085 / 9879
=1.0209

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))
=(714 / (714 + 3078)) / (734 / (734 + 2872))
=0.188291 / 0.20355
=0.925

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)
=(3493 / 10085) / (3335 / 9879)
=0.346356 / 0.337585
=1.026

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)
=((3882 + 3055) / 16684) / ((4068 + 3165) / 16921)
=0.415788 / 0.427457
=0.9727

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
=(266 - -174 - 1098) / 16684
=-0.039439

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.

News has a M-score of -2.63 suggests that the company is unlikely to be a manipulator.


News Business Description

Address
1211 Avenue of the Americas, New York, NY, USA, 10036
News Corporation is a diversified media conglomerate with significant presence in the us, the UK, and Australia. Key mastheads include The Wall Street Journal, Barron's, New York Post, The Times, The Sun, The Australian, Herald Sun, and The Daily Telegraph. The company also has a strong presence in the Australian subscription video market through 65%-owned Foxtel, and streaming platforms such as sport-focused Kayo and entertainment-focused Binge. Its 61%-owned REA Group is the dominant property listings business in Australia. In addition, it owns Harper Collins, one of the biggest book publishers in the world, and has a sizable us digital property advertising business, Move.
Executives
Marygrace Degrazio officer: Chief Accounting Officer 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Kelly Ayotte director C/O NEWS CORPORATION, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Susan Panuccio officer: Chief Financial Officer C/O NEWS CORPORATION, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
David B Pitofsky officer: General Counsel C/O NEWS CORPORATION, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Kevin Halpin officer: Deputy Chief Financial Officer 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Joel Klein director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
James R Murdoch director C/O LUPA SYSTEMS, 363 LAFAYETTE STREET, NEW YORK NY 10022
John Elkann director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10003
Elaine L. Chao director C/O DOLE FOOD COMPANY, INC., ONE DOLE DRIVE, WESTLAKE VILLAGE CA 91362
Ana Paula Pessoa director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10003
Masroor Siddiqui director 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10003
Natalie Bancroft director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Jose Maria Aznar director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Lachlan K Murdoch director C/O NEWS AMERICA INCORPORATED, 1211 AVENUE OF THE AMERICAS, NEW YORK NY 10036
Cruden Financial Services Llc 10 percent owner C/O MCDONALD CARANO WILSON LLP, 100 LIBERTY STREET, RENO NV 89501