Studio City International Stock Beneish M Score

MSC Stock  USD 6.22  0.01  0.16%   
This module uses fundamental data of Studio City to approximate the value of its Beneish M Score. Studio City 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 Studio City Piotroski F Score and Studio City Altman Z Score analysis.
  
At present, Studio City's Debt To Equity is projected to increase slightly based on the last few years of reporting. The current year's Debt Equity Ratio is expected to grow to 3.68, whereas Net Debt is forecasted to decline to about 1.5 B. At present, Studio City's Stock Based Compensation To Revenue is projected to increase slightly based on the last few years of reporting. The current year's PB Ratio is expected to grow to 1.97, whereas Price To Sales Ratio is forecasted to decline to 2.66.
At this time, it appears that Studio City International is an unlikely manipulator. The earnings manipulation may begin if Studio City's 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 Studio City 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 Studio City's 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.
-3.91
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables

0.92

Focus
Asset Quality

-1.97

Focus
Expense Coverage

1.13

Focus
Gross Margin Strengs

1.06

Focus
Accruals Factor

1.13

Focus
Depreciation Resistance

0.9

Focus
Net Sales Growth

0.7

Focus
Financial Leverage Condition

0.69

Focus

Studio City 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 Studio City's 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 Receivables27.9 M43.2 M
Way Down
Slightly volatile
Total Revenue313.1 M445.5 M
Way Down
Slightly volatile
Total Assets3.4 B3.2 B
Notably Up
Pretty Stable
Total Current Assets396 M316.1 M
Significantly Up
Slightly volatile
Non Current Assets Total2.9 B2.9 B
Fairly Down
Slightly volatile
Property Plant Equipment2.7 B3.4 B
Significantly Down
Slightly volatile
Depreciation And Amortization146.4 M169.4 M
Fairly Down
Slightly volatile
Selling General Administrative91.2 M115.2 M
Significantly Down
Slightly volatile
Total Current Liabilities183.3 M156.8 M
Fairly Up
Slightly volatile
Non Current Liabilities Total2.1 B2.4 B
Moderately Down
Pretty Stable
Short Term DebtM1.1 M
Notably Down
Slightly volatile
Long Term Debt2.1 B2.3 B
Moderately Down
Pretty Stable

Studio City International 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 Studio City's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Studio City in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Studio City's degree of accounting gimmicks and manipulations.

About Studio City 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.

Other Operating Expenses

385.2 Million

At present, Studio City's Other Operating Expenses is projected to increase significantly based on the last few years of reporting.

Studio City Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Studio City. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables63.4M10.8M15.9M484K43.3M27.9M
Total Revenue626.7M49.2M106.9M11.5M445.5M313.1M
Total Assets2.7B3.1B3.3B3.6B3.2B3.4B
Total Current Assets414.4M629.2M563.7M553.8M316.1M396.0M
Net Debt1.1B1.0B1.6B1.9B2.1B1.5B
Short Term Debt895K995K899K1.1M1.1M1.0M
Long Term Debt1.4B1.6B2.1B2.4B2.3B2.1B
Operating Income178.0M(281.0M)(191.6M)(277.2M)(11.6M)(12.2M)
Investments(90.9M)(9.6M)(407.2M)(453.4M)(222.2M)(233.4M)

Studio City 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, Studio City's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Studio City's managers, analysts, and investors.
Environmental
Governance
Social

About Studio City Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Studio City International's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Studio City using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Studio City International 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.

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When determining whether Studio City International offers a strong return on investment in its stock, a comprehensive analysis is essential. The process typically begins with a thorough review of Studio City's 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 Studio City International Stock. Outlined below are crucial reports that will aid in making a well-informed decision on Studio City International Stock:
Is Hotels, Restaurants & Leisure 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 Studio City. If investors know Studio 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 Studio City listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
13.252
Earnings Share
(0.46)
Revenue Per Share
3.258
Quarterly Revenue Growth
0.269
Return On Assets
0.0099
The market value of Studio City International is measured differently than its book value, which is the value of Studio that is recorded on the company's balance sheet. Investors also form their own opinion of Studio City's value that differs from its market value or its book value, called intrinsic value, which is Studio City's 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 Studio City's market value can be influenced by many factors that don't directly affect Studio City's 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 Studio City's value and its price as these two are different measures arrived at by different means. Investors typically determine if Studio City is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Studio City's 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.