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Alliance Entertainment Holding (Alliance Entertainment Holding) Beneish M-Score : -3.28 (As of May. 07, 2024)


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What is Alliance Entertainment Holding 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 -3.28 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

AENT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.28   Med: -2.9   Max: -2.52
Current: -3.28

During the past 4 years, the highest Beneish M-Score of Alliance Entertainment Holding was -2.52. The lowest was -3.28. And the median was -2.90.


Alliance Entertainment Holding Beneish M-Score Historical Data

The historical data trend for Alliance Entertainment Holding'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.

Alliance Entertainment Holding Beneish M-Score Chart

Alliance Entertainment Holding Annual Data
Trend Jun20 Jun21 Jun22 Jun23
Beneish M-Score
- - - -2.52

Alliance Entertainment Holding Quarterly Data
Jun20 Jun21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only - - -2.52 - -3.28

Competitive Comparison of Alliance Entertainment Holding's Beneish M-Score

For the Entertainment subindustry, Alliance Entertainment Holding'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.


Alliance Entertainment Holding's Beneish M-Score Distribution in the Media - Diversified Industry

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

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



Alliance Entertainment Holding 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 Alliance Entertainment Holding 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 * 1.21+0.528 * 0.7763+0.404 * 1.0406+0.892 * 0.8879+0.115 * 0.9817
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0244+4.679 * -0.169896-0.327 * 0.9772
=-3.28

* 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 $184 Mil.
Revenue was 425.586 + 226.755 + 247.132 + 227.728 = $1,127 Mil.
Gross Profit was 47.703 + 26.254 + 30.241 + 27.326 = $132 Mil.
Total Current Assets was $307 Mil.
Total Assets was $428 Mil.
Property, Plant and Equipment(Net PPE) was $16 Mil.
Depreciation, Depletion and Amortization(DDA) was $7 Mil.
Selling, General, & Admin. Expense(SGA) was $113 Mil.
Total Current Liabilities was $227 Mil.
Long-Term Debt & Capital Lease Obligation was $113 Mil.
Net Income was 8.914 + -3.462 + -4.63 + -7.75 = $-7 Mil.
Non Operating Income was 0 + -0.047 + -0.969 + -3.348 = $-4 Mil.
Cash Flow from Operations was 28.845 + -2.739 + -4.926 + 48.974 = $70 Mil.
Total Receivables was $171 Mil.
Revenue was 445.162 + 238.701 + 265.179 + 320.412 = $1,269 Mil.
Gross Profit was 20.897 + 25.468 + 28.488 + 40.138 = $115 Mil.
Total Current Assets was $357 Mil.
Total Assets was $491 Mil.
Property, Plant and Equipment(Net PPE) was $17 Mil.
Depreciation, Depletion and Amortization(DDA) was $7 Mil.
Selling, General, & Admin. Expense(SGA) was $125 Mil.
Total Current Liabilities was $395 Mil.
Long-Term Debt & Capital Lease Obligation was $4 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)
=(183.564 / 1127.201) / (170.851 / 1269.454)
=0.162849 / 0.134586
=1.21

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)
=(114.991 / 1269.454) / (131.524 / 1127.201)
=0.090583 / 0.116682
=0.7763

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 - (306.59 + 15.615) / 428.015) / (1 - (356.978 + 17.344) / 490.955)
=0.247211 / 0.237564
=1.0406

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
=1127.201 / 1269.454
=0.8879

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))
=(7.052 / (7.052 + 17.344)) / (6.517 / (6.517 + 15.615))
=0.289064 / 0.294461
=0.9817

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)
=(113.305 / 1127.201) / (124.559 / 1269.454)
=0.100519 / 0.09812
=1.0244

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)
=((112.89 + 226.582) / 428.015) / ((3.918 + 394.542) / 490.955)
=0.793131 / 0.811602
=0.9772

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
=(-6.928 - -4.364 - 70.154) / 428.015
=-0.169896

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.

Alliance Entertainment Holding has a M-score of -3.28 suggests that the company is unlikely to be a manipulator.


Alliance Entertainment Holding Beneish M-Score Related Terms

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Alliance Entertainment Holding (Alliance Entertainment Holding) Business Description

Traded in Other Exchanges
N/A
Address
8201 Peters Road, Suite 1000, Plantation, FL, USA, 33324
Alliance Entertainment Holding Corp is a top tier distributor of music, movies, and consumer electronics. It offers more than 485,000 SKU products, consisting of vinyl records, compact discs, DVDs, Blu-rays, and video games. The company serves customers of every size, providing a suite of services to resellers and retailers around the world.