Lionsgate Studios Corp Stock Beneish M Score

LION Stock  USD 7.09  0.04  0.57%   
This module uses fundamental data of Lionsgate Studios to approximate the value of its Beneish M Score. Lionsgate Studios M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Lionsgate Studios Piotroski F Score and Lionsgate Studios Altman Z Score analysis.
  
At this time, Lionsgate Studios' Debt Equity Ratio is very stable compared to the past year. As of the 25th of November 2024, Debt Ratio is likely to grow to 21.73, while Long Term Debt is likely to drop about 2.3 B. At this time, Lionsgate Studios' Return On Tangible Assets are very stable compared to the past year. As of the 25th of November 2024, Current Ratio is likely to grow to 4.80, while Price To Sales Ratio is likely to drop 0.02.
At this time, it appears that Lionsgate Studios Corp is an unlikely manipulator. The earnings manipulation may begin if Lionsgate Studios' top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Lionsgate Studios executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Lionsgate Studios' earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.14
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

1.79

Focus
Asset Quality

N/A

Focus
Expense Coverage

1.0

Focus
Gross Margin Strengs

0.79

Focus
Accruals Factor

1.0

Focus
Depreciation Resistance

N/A

Focus
Net Sales Growth

1.05

Focus
Financial Leverage Condition

1.73

Focus

Lionsgate Studios Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Lionsgate Studios' auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables1.5 B781.9 M
Way Up
Very volatile
Total Revenue3.1 BB
Sufficiently Up
Slightly volatile
Total Assets3.1 B5.1 B
Way Down
Slightly volatile
Total Current Assets1.2 B1.4 B
Fairly Down
Pretty Stable
Non Current Assets Total1.9 B3.7 B
Way Down
Pretty Stable
Depreciation And Amortization58.5 M61.6 M
Notably Down
Slightly volatile
Selling General Administrative366.7 M349.2 M
Sufficiently Up
Slightly volatile
Total Current Liabilities3.8 B3.6 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total2.6 B2.5 B
Sufficiently Up
Slightly volatile
Net DebtB3.8 B
Sufficiently Up
Slightly volatile
Short Term Debt2.4 B2.3 B
Sufficiently Up
Slightly volatile
Long Term Debt2.3 B2.6 B
Fairly Down
Slightly volatile
Short Term Investments30.4 M32 M
Notably Down
Slightly volatile
Long Term Investments66.4 M74.4 M
Fairly Down
Slightly volatile
Gross Profit Margin0.290.3684
Significantly Down
Slightly volatile

Lionsgate Studios Corp Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Lionsgate Studios' different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Lionsgate Studios in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Lionsgate Studios' degree of accounting gimmicks and manipulations.

About Lionsgate Studios Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

58.52 Million

At this time, Lionsgate Studios' Depreciation And Amortization is very stable compared to the past year.

Lionsgate Studios ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Lionsgate Studios' sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Lionsgate Studios' managers, analysts, and investors.
Environmental
Governance
Social

About Lionsgate Studios Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Lionsgate Studios Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Lionsgate Studios using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Lionsgate Studios Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

Pair Trading with Lionsgate Studios

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Lionsgate Studios position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Lionsgate Studios will appreciate offsetting losses from the drop in the long position's value.

Moving against Lionsgate Stock

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The ability to find closely correlated positions to Lionsgate Studios could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Lionsgate Studios when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Lionsgate Studios - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Lionsgate Studios Corp to buy it.
The correlation of Lionsgate Studios is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Lionsgate Studios moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Lionsgate Studios Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Lionsgate Studios can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
When determining whether Lionsgate Studios Corp offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Lionsgate Studios' financial statements, including income statements, balance sheets, and cash flow statements, to assess its financial health. Key financial ratios are used to gauge profitability, efficiency, and growth potential of Lionsgate Studios Corp Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Lionsgate Studios Corp Stock:
Check out Lionsgate Studios Piotroski F Score and Lionsgate Studios Altman Z Score analysis.
You can also try the Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Is Asset Management & Custody Banks space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Lionsgate Studios. If investors know Lionsgate will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Lionsgate Studios listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share
(0.17)
The market value of Lionsgate Studios Corp is measured differently than its book value, which is the value of Lionsgate that is recorded on the company's balance sheet. Investors also form their own opinion of Lionsgate Studios' value that differs from its market value or its book value, called intrinsic value, which is Lionsgate Studios' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Lionsgate Studios' market value can be influenced by many factors that don't directly affect Lionsgate Studios' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Lionsgate Studios' value and its price as these two are different measures arrived at by different means. Investors typically determine if Lionsgate Studios is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Lionsgate Studios' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.