F

Madison Square Garden Entertain — Earnings Quality Grade F

MSGE · Consumer Cyclical

Major red flags

Revenue
$943M
2025
Net Income
$37M
2025
Gross Margin
43.2%
Free Cash Flow
$93M
01

Screening Summary

15
Passed
1
Watch
1
Failed
-2.84
M-Score

Management Signals

No recent CEO, CFO, board, or accounting leadership signals found in SEC 8-K filings.
02

Financial Trends

Revenue & Net Income ($B)

Margins (%)

03

18-Point Screening

01

Revenue Quality

A1DSO Change

DSO 26 days, change -4 days YoY

A2AR vs Revenue Growth

AR growth -13.6% vs revenue growth -1.7%

A3Revenue vs CFFO

Revenue -1.7%, CFFO 3.6%. Cash follows revenue

02

Expense Quality

B1Inventory vs COGS

Inventory -3.1% vs COGS -5.8%. Normal

B2CapEx vs Revenue

CapEx growth -8.1% vs revenue -1.7%. Normal

B3SG&A Ratio

SG&A/Gross Profit = 52.8%. Normal

B4Gross Margin

Gross margin 43.2%, change +2.5pp. Stable

03

Cash Flow Quality

C1CFFO vs Net Income

CFFO/NI = 3.08. Profits backed by cash

C2Free Cash Flow

FCF $0.1B, FCF/NI = 2.49

C3Accruals Ratio

Accruals ratio = -4.7%. Low accruals

C4Cash vs Debt

Cash $0.0B covers only 4% of debt $1.2B

04

Balance Sheet Health

D1Goodwill + Intangibles

Goodwill+Intangibles $0.1B = -999% of equity. Manageable

!
D2Leverage

Debt/EBITDA = 6.9x (>4x). Financial stress

D3Soft Asset Growth

Other assets 2.1% vs revenue -1.7%. Normal

D4Asset Impairment

No write-off data

05

Acquisition Risk

E1Serial Acquirer FCF

FCF after acquisitions positive

E2Goodwill Surge

Goodwill+Intangibles change 0% YoY. Normal

06

Manipulation Score

F1Beneish M-Score

M-Score = -2.84 (< -2.22). Unlikely manipulator

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04

Beneish M-Score

Manipulation Probability-2.84
-4.0 Clean-2.22 Grey-1.78 Danger0
0.88
DSRI
AR growing faster than revenue?
0.943
GMI
Gross margin declining?
0.977
AQI
Asset quality deteriorating?
0.983
SGI
Revenue growth rate
1.008
DEPI
Depreciation slowing?
1.057
SGAI
SG&A ratio changing?
-0.0466
TATA
Accruals level
0.901
LVGI
Leverage increasing?
05

Altman Z-Score

-0.28
Distress Zone
0 Distress1.102.605.0+ Safe
-0.1589
Liquidity
0.0916
Cumulative profit
0.0695
Operating efficiency
-0.0079
Leverage

Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-25