Enthusiast Gaming Holdings (Enthusiast Gaming Holdings) Beneish M-Score : -3.48 (As of Apr. 27, 2024)

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What is Enthusiast Gaming Holdings 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 -3.48 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

EGLXF' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48 Med: -2.45 Max: 1.87
Current: -3.48

During the past 5 years, the highest Beneish M-Score of Enthusiast Gaming Holdings was 1.87. The lowest was -3.48. And the median was -2.45.

Enthusiast Gaming Holdings Beneish M-Score Historical Data

The historical data trend for Enthusiast Gaming Holdings'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.

Enthusiast Gaming Holdings Beneish M-Score Chart

Enthusiast Gaming Holdings Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

1.87

-1.87

-2.78

Enthusiast Gaming Holdings Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23
Beneish M-Score	Get a 7-Day Free Trial															-2.67	-2.78	-2.87	-3.01	-3.48

Competitive Comparison of Enthusiast Gaming Holdings's Beneish M-Score

For the Internet Content & Information subindustry, Enthusiast Gaming Holdings'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.

Enthusiast Gaming Holdings's Beneish M-Score Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Enthusiast Gaming Holdings's Beneish M-Score distribution charts can be found below:

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

Enthusiast Gaming Holdings 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 Enthusiast Gaming Holdings 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 * 0.8273

0.528 * 0.7972

0.404 * 1.0345

0.892 * 0.8572

0.115 * 0.9845

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0867

4.679 * -0.111146

0.327 * 1.3033

-3.50

This Year (Sep23) TTM:

Last Year (Sep22) TTM:

Total Receivables was $20.2 Mil.
Revenue was 33.669 + 32.063 + 31.338 + 39.728 = $136.8 Mil.
Gross Profit was 12.369 + 11.277 + 12.253 + 13.301 = $49.2 Mil.
Total Current Assets was $26.4 Mil.
Total Assets was $198.6 Mil.
Property, Plant and Equipment(Net PPE) was $1.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $9.0 Mil.
Selling, General, & Admin. Expense(SGA) was $51.6 Mil.
Total Current Liabilities was $37.7 Mil.
Long-Term Debt & Capital Lease Obligation was $8.4 Mil.
Net Income was -43.651 + -7.69 + -6.385 + -8.703 = $-66.4 Mil.
Non Operating Income was -38.35 + -0.219 + -0.084 + -0.238 = $-38.9 Mil.
Cash Flow from Operations was 0.599 + 1.085 + -1.899 + -5.253 = $-5.5 Mil.

Total Receivables was $28.4 Mil.
Revenue was 37.918 + 39.924 + 37.258 + 44.486 = $159.6 Mil.
Gross Profit was 12.415 + 11.983 + 10.656 + 10.702 = $45.8 Mil.
Total Current Assets was $42.5 Mil.
Total Assets was $265.5 Mil.
Property, Plant and Equipment(Net PPE) was $1.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.3 Mil.
Selling, General, & Admin. Expense(SGA) was $55.4 Mil.
Total Current Liabilities was $33.5 Mil.
Long-Term Debt & Capital Lease Obligation was $13.8 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)
	=	(20.169 / 136.798)	/	(28.44 / 159.586)
	=	0.147436	/	0.178211
	=	0.8273

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)
	=	(45.756 / 159.586)	/	(49.2 / 136.798)
	=	0.286717	/	0.359654
	=	0.7972

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 - (26.365 + 1.144) / 198.568)	/	(1 - (42.487 + 1.915) / 265.477)
	=	0.861463	/	0.832746
	=	1.0345

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
	=	136.798	/	159.586
	=	0.8572

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))
	=	(13.277 / (13.277 + 1.915))	/	(9.045 / (9.045 + 1.144))
	=	0.873947	/	0.887722
	=	0.9845

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)
	=	(51.567 / 136.798)	/	(55.36 / 159.586)
	=	0.376957	/	0.346898
	=	1.0867

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)
	=	((8.437 + 37.684) / 198.568)	/	((13.829 + 33.484) / 265.477)
	=	0.232268	/	0.178219
	=	1.3033

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
	=	(-66.429 - -38.891	-	-5.468)	/	198.568
	=	-0.111146

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.

Enthusiast Gaming Holdings has a M-score of -3.50 suggests that the company is unlikely to be a manipulator.

Enthusiast Gaming Holdings Beneish M-Score Related Terms

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Enthusiast Gaming Holdings (Enthusiast Gaming Holdings) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Enthusiast Gaming Holdings Inc (OTCPK:EGLXF) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

2AV:Germany EGLX:Canada

Address

90 Eglinton Avenue East, Suite 805, Toronto, ON, CAN, M4P 2Y3

Website

https://www.enthusiastgaming.com

Enthusiast Gaming Holdings Inc is a gaming company building a media platform for video games and esports fans to connect and engage worldwide. Reaching over 300 million gamers every month, the company is a member of the Comscore 100 ranking of the top Internet Properties in the U.S. and the largest in the Gaming Information category on mobile devices. Combining the elements of its four core pillars; Media, Talent, Esports and Experiential, Enthusiast Gaming provides an engagement opportunity resulting in more points of connection than any other video game and esports platform, with unparalleled access to the influential and lucrative GenZ and Millennial audience. It has one segment which is digital media and entertainment. It generates a majority of its revenue from Media and content.