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Viacom Inc (NAS:VIA)
Beneish M-Score
-2.60 (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.

Viacom Inc has a M-score of -2.60 suggests that the company is not a manipulator.

VIA' s 10-Year Beneish M-Score Range
Min: -2.73   Max: 0.15
Current: -2.6

-2.73
0.15

During the past 12 years, the highest Beneish M-Score of Viacom Inc was 0.15. The lowest was -2.73. And the median was -2.57.


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 Viacom 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 * 0.9999+0.528 * 0.9605+0.404 * 0.9481+0.892 * 1.0508+0.115 * 1.0625
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9862+4.679 * -0.0103-0.327 * 1.2599
=-2.60

* 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 $2,674 Mil.
Revenue was 3174 + 3197 + 3652 + 3693 = $13,716 Mil.
Gross Profit was 1636 + 1723 + 2000 + 1848 = $7,207 Mil.
Total Current Assets was $6,596 Mil.
Total Assets was $23,862 Mil.
Property, Plant and Equipment(Net PPE) was $1,011 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,459 Mil.
Selling, General & Admin. Expense(SGA) was $2,859 Mil.
Total Current Liabilities was $3,914 Mil.
Long-Term Debt was $12,761 Mil.
Net Income was 502 + 547 + 804 + 643 = $2,496 Mil.
Non Operating Income was 7 + 26 + 102 + 4 = $139 Mil.
Cash Flow from Operations was 520 + 293 + 1051 + 739 = $2,603 Mil.
Accounts Receivable was $2,545 Mil.
Revenue was 3135 + 3314 + 3363 + 3241 = $13,053 Mil.
Gross Profit was 1596 + 1551 + 1799 + 1642 = $6,588 Mil.
Total Current Assets was $5,294 Mil.
Total Assets was $22,438 Mil.
Property, Plant and Equipment(Net PPE) was $1,023 Mil.
Depreciation, Depletion and Amortization(DDA) was $6,617 Mil.
Selling, General & Admin. Expense(SGA) was $2,759 Mil.
Total Current Liabilities was $3,530 Mil.
Long-Term Debt was $8,915 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)
=(2674 / 13716) / (2545 / 13053)
=0.1949548 / 0.19497434
=0.9999

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)
=(1723 / 13053) / (1636 / 13716)
=0.50471156 / 0.52544474
=0.9605

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 - (6596 + 1011) / 23862) / (1 - (5294 + 1023) / 22438)
=0.68120862 / 0.71846867
=0.9481

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
=13716 / 13053
=1.0508

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))
=(6617 / (6617 + 1023)) / (4459 / (4459 + 1011))
=0.86609948 / 0.81517367
=1.0625

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)
=(2859 / 13716) / (2759 / 13053)
=0.20844269 / 0.21136903
=0.9862

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)
=((12761 + 3914) / 23862) / ((8915 + 3530) / 22438)
=0.69880982 / 0.55463945
=1.2599

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
=(2496 - 139 - 2603) / 23862
=-0.0103

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.

Viacom Inc has a M-score of -2.60 suggests that the company will not 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.

Viacom Inc Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Sep11Sep12Sep13
DSRI 0.94550.99060.79641.39710.84440.9957
GMI 1.07231.06431.11840.87240.96850.9517
AQI 0.9960.98051.01640.99360.97161.0152
SGI 1.19351.18151.08950.90651.1250.9311
DEPI 0.89340.9270.94631.02380.96751.0193
SGAI 0.84950.9951.00251.00160.98281.0137
LVGI 1.19281.040.97320.83841.0421.0862
TATA -0.0308-0.002-0.02660.03-0.02-0.0226
M-score -2.51-2.33-2.64-2.07-2.65-2.70

Viacom Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.01710.99170.91690.99570.95271.11621.2141.18721.08560.9999
GMI 1.02981.01721.010.95170.92380.9370.94950.9790.96190.9605
AQI 0.97051.0111.01681.01521.03150.98180.95610.91850.96590.9481
SGI 1.14931.10881.0330.93110.8810.86430.92650.99331.03231.0508
DEPI 0.03810.69350.64871.01930.98250.95661.08820.99541.03571.0625
SGAI 0.93850.93690.94841.01371.07851.10611.06981.0330.99360.9862
LVGI 1.13161.11581.1471.08621.04541.04351.04331.22231.19961.2599
TATA -0.0327-0.0334-0.0277-0.0226-0.0097-0.0086-0.0264-0.035-0.0209-0.0103
M-score -2.62-2.60-2.72-2.70-2.73-2.61-2.53-2.60-2.56-2.60
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