Virgin Media (FRA:N5T) Beneish M-Score : 0.00 (As of May. 15, 2024)

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What is Virgin Media 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.

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

During the past 13 years, the highest Beneish M-Score of Virgin Media was 0.00. The lowest was 0.00. And the median was 0.00.

Virgin Media Beneish M-Score Historical Data

The historical data trend for Virgin Media'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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Virgin Media Beneish M-Score Chart

Virgin Media Annual Data

Trend

Dec03

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Beneish M-Score

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-3.30

-3.22

-3.10

-3.16

-1.34

Virgin Media Quarterly Data
	Jun08	Sep08	Dec08	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13
Beneish M-Score	Get a 7-Day Free Trial															-3.11	-3.08	-2.93	-1.34	-1.35

Competitive Comparison of Virgin Media's Beneish M-Score

For the Broadcasting subindustry, Virgin Media'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.

Virgin Media's Beneish M-Score Distribution in the Media - Diversified Industry

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

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

Virgin Media 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 Virgin Media 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 * 0.9047

0.528 * 0.9913

0.404 * 1.5739

0.892 * 1.0814

0.115 * 0.9659

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9796

4.679 * 0.181455

0.327 * 0.7396

-1.33

This Year (Mar13) TTM:

Last Year (Mar12) TTM:

Total Receivables was €498 Mil.
Revenue was 1213.891 + 1279.889 + 1286.283 + 1272.845 = €5,053 Mil.
Gross Profit was 716.225 + 780.342 + 781.507 + 773.078 = €3,051 Mil.
Total Current Assets was €1,066 Mil.
Total Assets was €12,583 Mil.
Property, Plant and Equipment(Net PPE) was €5,223 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,172 Mil.
Selling, General, & Admin. Expense(SGA) was €1,003 Mil.
Total Current Liabilities was €1,406 Mil.
Long-Term Debt & Capital Lease Obligation was €7,021 Mil.
Net Income was 161.736 + 3270.814 + 155.075 + 80.196 = €3,668 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = €0 Mil.
Cash Flow from Operations was 356.308 + 285.719 + 456.213 + 286.325 = €1,385 Mil.

Total Receivables was €509 Mil.
Revenue was 1205.211 + 1211.857 + 1146.688 + 1108.825 = €4,673 Mil.
Gross Profit was 705.855 + 734.903 + 686.063 + 670.267 = €2,797 Mil.
Total Current Assets was €801 Mil.
Total Assets was €9,247 Mil.
Property, Plant and Equipment(Net PPE) was €5,507 Mil.
Depreciation, Depletion and Amortization(DDA) was €1,185 Mil.
Selling, General, & Admin. Expense(SGA) was €947 Mil.
Total Current Liabilities was €1,542 Mil.
Long-Term Debt & Capital Lease Obligation was €6,830 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)
	=	(498.365 / 5052.908)	/	(509.418 / 4672.581)
	=	0.098629	/	0.109023
	=	0.9047

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)
	=	(2797.088 / 4672.581)	/	(3051.152 / 5052.908)
	=	0.598617	/	0.603841
	=	0.9913

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 - (1065.546 + 5222.702) / 12583.018)	/	(1 - (800.839 + 5506.935) / 9246.899)
	=	0.500259	/	0.31785
	=	1.5739

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
	=	5052.908	/	4672.581
	=	1.0814

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))
	=	(1184.507 / (1184.507 + 5506.935))	/	(1171.983 / (1171.983 + 5222.702))
	=	0.177018	/	0.183275
	=	0.9659

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)
	=	(1002.925 / 5052.908)	/	(946.788 / 4672.581)
	=	0.198485	/	0.202626
	=	0.9796

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)
	=	((7020.542 + 1405.552) / 12583.018)	/	((6830.248 + 1541.549) / 9246.899)
	=	0.66964	/	0.905363
	=	0.7396

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
	=	(3667.821 - 0	-	1384.565)	/	12583.018
	=	0.181455

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.

Virgin Media has a M-score of -1.33 signals that the company is likely to be a manipulator.

Virgin Media Beneish M-Score Related Terms

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Virgin Media (FRA:N5T) Business Description

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Virgin Media Inc is engaged in the entertainment and communications business, being a quad-play provider of broadband internet, television, mobile telephony and fixed line telephony services that offer a variety of entertainment and communications services to residential and commercial customers throughout the U.K. The group is a provider of residential broadband internet, pay television and fixed line telephony services by number of customers. In addition, it provides a complete portfolio of voice, data and internet solutions to businesses, public sector organizations and service providers in the U.K. through Virgin Media Business. Its two reporting segments are Consumer and Business. Consumer segment includes the distribution of television programming over the cable network and the provision of broadband and fixed line telephone services to residential consumers, both on and off the cable network. The Consumer segment faces competition from BT, British Sky Broadcasting Group PLC, or BSkyB, TalkTalk Telecom Group PLC, or TalkTalk, Vodafone, EE and O2. Business segment includes the voice and data telecommunication and internet solutions services that provide through its cable network and third party networks to businesses, public sector organizations and service providers. The Business segment is managed through Virgin Media Business offers a broad portfolio of voice, data and internet solutions to commercial and public sector organizations in the U.K., ranging from analog telephony to managed data networks and applications. Virgin Media Business competes primarily with traditional network operators such as BT and C&W. It also competes with regional providers, such as COLTTelecom Group PLC.

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