Drago Entertainment (WAR:DGE) Beneish M-Score : 1.91 (As of May. 21, 2024)

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What is Drago Entertainment 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.

Warning Sign:

Beneish M-Score 1.91 higher than -1.78, which implies that the company might have manipulated its financial results.

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

WAR:DGE' s Beneish M-Score Range Over the Past 10 Years
Min: -1.15 Med: 0.38 Max: 1.91
Current: 1.91

During the past 5 years, the highest Beneish M-Score of Drago Entertainment was 1.91. The lowest was -1.15. And the median was 0.38.

Drago Entertainment Beneish M-Score Historical Data

The historical data trend for Drago Entertainment'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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Drago Entertainment Beneish M-Score Chart

Drago Entertainment Annual Data

Trend

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-1.15

1.91

Drago Entertainment Quarterly Data
	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial											-1.15	1.70	1.13	1.38	1.91

Competitive Comparison of Drago Entertainment's Beneish M-Score

For the Electronic Gaming & Multimedia subindustry, Drago Entertainment'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.

Drago Entertainment's Beneish M-Score Distribution in the Interactive Media Industry

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

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

Drago Entertainment 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 Drago Entertainment 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 * 0.8118

0.528 * 0.7652

0.404 * 4.0537

0.892 * 0.9109

0.115 * 0.819

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9104

4.679 * 0.737505

0.327 * 0.7277

1.91

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was zł1.73 Mil.
Revenue was 2.642 + 3.039 + 3.593 + 2.744 = zł12.02 Mil.
Gross Profit was 4.673 + 4.273 + 4.139 + 3.519 = zł16.60 Mil.
Total Current Assets was zł12.46 Mil.
Total Assets was zł13.03 Mil.
Property, Plant and Equipment(Net PPE) was zł0.12 Mil.
Depreciation, Depletion and Amortization(DDA) was zł0.43 Mil.
Selling, General, & Admin. Expense(SGA) was zł3.95 Mil.
Total Current Liabilities was zł2.04 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.00 Mil.
Net Income was 0.113 + 0.666 + 0.222 + 0.409 = zł1.41 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = zł0.00 Mil.
Cash Flow from Operations was -1.201 + -6.393 + -0.682 + 0.08 = zł-8.20 Mil.

Total Receivables was zł2.34 Mil.
Revenue was 4.408 + 4.004 + 2.184 + 2.597 = zł13.19 Mil.
Gross Profit was 7.21 + 2.602 + 1.893 + 2.243 = zł13.95 Mil.
Total Current Assets was zł11.94 Mil.
Total Assets was zł12.19 Mil.
Property, Plant and Equipment(Net PPE) was zł0.15 Mil.
Depreciation, Depletion and Amortization(DDA) was zł0.26 Mil.
Selling, General, & Admin. Expense(SGA) was zł4.77 Mil.
Total Current Liabilities was zł2.63 Mil.
Long-Term Debt & Capital Lease Obligation was zł0.00 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)
	=	(1.732 / 12.018)	/	(2.342 / 13.193)
	=	0.144117	/	0.177518
	=	0.8118

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)
	=	(13.948 / 13.193)	/	(16.604 / 12.018)
	=	1.057227	/	1.381594
	=	0.7652

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 - (12.46 + 0.119) / 13.025)	/	(1 - (11.943 + 0.147) / 12.193)
	=	0.034242	/	0.008447
	=	4.0537

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
	=	12.018	/	13.193
	=	0.9109

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))
	=	(0.263 / (0.263 + 0.147))	/	(0.43 / (0.43 + 0.119))
	=	0.641463	/	0.783242
	=	0.819

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)
	=	(3.954 / 12.018)	/	(4.768 / 13.193)
	=	0.329006	/	0.361404
	=	0.9104

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)
	=	((0 + 2.043) / 13.025)	/	((0 + 2.628) / 12.193)
	=	0.156852	/	0.215534
	=	0.7277

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
	=	(1.41 - 0	-	-8.196)	/	13.025
	=	0.737505

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.

Drago Entertainment has a M-score of 1.91 signals that the company is likely to be a manipulator.

Drago Entertainment Beneish M-Score Related Terms

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Drago Entertainment (WAR:DGE) Business Description

Industry

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Comparable Companies

Traded in Other Exchanges

65M:Germany

Address

ul. Alba?ska 3, Krakow, POL, 30-662

Website

http://www.drago-entertainment.com

Drago Entertainment SA is a gaming company. The company has delivered great, innovative games such as Oil Tycoon 2, Cold Zero - The last Stand, Hell-Copter/Vulture. It is focused on creating and developing its own projects.

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