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Charter Communications Inc (NAS:CHTR)
Beneish M-Score
0.00 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Charter Communications Inc has a M-score of signals that the company is a manipulator.

CHTR' s 10-Year Beneish M-Score Range
Min: -6.76   Max: 13.63
Current: 0

-6.76
13.63

During the past 13 years, the highest Beneish M-Score of Charter Communications Inc was 13.63. The lowest was -6.76. And the median was -2.96.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Charter Communications Inc for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $217 Mil.
Revenue was 2202 + 2148 + 2118 + 1972 = $8,440 Mil.
Gross Profit was 755 + 753 + 721 + 677 = $2,906 Mil.
Total Current Assets was $304 Mil.
Total Assets was $17,297 Mil.
Property, Plant and Equipment(Net PPE) was $8,079 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,934 Mil.
Selling, General & Admin. Expense(SGA) was $23 Mil.
Total Current Liabilities was $1,523 Mil.
Long-Term Debt was $14,090 Mil.
Net Income was -37 + 39 + -70 + -96 = $-164 Mil.
Non Operating Income was -5 + 0 + -19 + -63 = $-87 Mil.
Cash Flow from Operations was 577 + 595 + 538 + 484 = $2,194 Mil.
Accounts Receivable was $208 Mil.
Revenue was 1917 + 1913 + 1880 + 1884 = $7,594 Mil.
Gross Profit was 659 + 685 + 638 + 680 = $2,662 Mil.
Total Current Assets was $374 Mil.
Total Assets was $15,639 Mil.
Property, Plant and Equipment(Net PPE) was $7,259 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,730 Mil.
Selling, General & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $1,290 Mil.
Long-Term Debt was $12,816 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(217 / 8440) / (208 / 7594)
=0.0257109 / 0.02739004
=

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)
=(753 / 7594) / (755 / 8440)
=0.3505399 / 0.3443128
=

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (304 + 8079) / 17297) / (1 - (374 + 7259) / 15639)
=0.51534948 / 0.51192531
=

4. SGI = Sales Growth Index

Ratio of sales 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
=8440 / 7594
=

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(1730 / (1730 + 7259)) / (1934 / (1934 + 8079))
=0.19245745 / 0.19314891
=

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(23 / 8440) / (0 / 7594)
=0.00272512 / 0
=

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((14090 + 1523) / 17297) / ((12816 + 1290) / 15639)
=0.90264208 / 0.90197583
=

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
=(-164 - -87 - 2194) / 17297
=-0.1313

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Charter Communications Inc has a M-score of signals that the company is likely to be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Charter Communications Inc Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec10Dec11Dec12Dec13
DSRI 0.67071.01781.06520.83321.05810.9141.02121.06320.8382
GMI 1.01571.02381.03341.00940.98860.99021.11120.99581.4596
AQI 1.04240.90341.05521.01180.99540.8790.98570.98150.9659
SGI 1.05540.98781.05741.09361.09051.07951.08951.02051.0416
DEPI 0.9180.89350.94030.98661.00250.99261.13890.9740.9764
SGAI 0.9241.03490.99181.05271.01461.00690.25940.95760
LVGI 1.04031.25421.07281.0771.07441.14310.51211.05641.0017
TATA -0.0639-0.1437-0.1065-0.1082-0.1111-0.2026-0.1322-0.1255-0.1362
M-score -3.02-3.27-2.86-3.08-2.90-3.54-2.64-3.01-2.83

Charter Communications Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.06321.0121.01910.96730.83820.86090.83390.8674
GMI 0.99581.11351.24961.4491.45961.31381.18521.0262
AQI 0.98150.9850.9830.91510.96590.96010.97091.0679
SGI 1.02051.02351.03371.03791.04161.04591.04461.0667
DEPI 0.9740.96420.97250.98590.97640.98580.97940.9979
SGAI 0.95760.1041-0.7663-1.63410000
LVGI 1.05641.03881.03671.03631.00171.0041.00571.0045
TATA -0.1255-0.1289-0.1274-0.1244-0.1362-0.1361-0.1381-0.1268
M-score -3.01-2.86-2.61-2.42-2.83-2.89-2.99-2.92
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