Switch to:
GuruFocus has detected 3 Warning Signs with Viacom Inc $VIA.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Viacom Inc (NAS:VIA)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

VIA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73   Max: -1.94
Current: -2.49

-2.73
-1.94

During the past 13 years, the highest Beneish M-Score of Viacom Inc was -1.94. The lowest was -2.73. And the median was -2.53.


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 * 1.0719+0.528 * 1.0507+0.404 * 0.9928+0.892 * 0.9679+0.115 * 0.9874
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0661+4.679 * -0.0143-0.327 * 0.9608
=-2.49

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $3,125 Mil.
Revenue was 3324 + 3226 + 3107 + 3001 = $12,658 Mil.
Gross Profit was 1505 + 1364 + 1532 + 1347 = $5,748 Mil.
Total Current Assets was $4,989 Mil.
Total Assets was $23,312 Mil.
Property, Plant and Equipment(Net PPE) was $976 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,790 Mil.
Selling, General & Admin. Expense(SGA) was $2,885 Mil.
Total Current Liabilities was $4,205 Mil.
Long-Term Debt was $11,783 Mil.
Net Income was 396 + 254 + 432 + 303 = $1,385 Mil.
Non Operating Income was 16 + -4 + 22 + 29 = $63 Mil.
Cash Flow from Operations was 159 + 971 + 116 + 410 = $1,656 Mil.
Accounts Receivable was $3,012 Mil.
Revenue was 3154 + 3788 + 3058 + 3078 = $13,078 Mil.
Gross Profit was 1561 + 1851 + 1806 + 1022 = $6,240 Mil.
Total Current Assets was $4,699 Mil.
Total Assets was $22,362 Mil.
Property, Plant and Equipment(Net PPE) was $903 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,120 Mil.
Selling, General & Admin. Expense(SGA) was $2,796 Mil.
Total Current Liabilities was $4,468 Mil.
Long-Term Debt was $11,494 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)
=(3125 / 12658) / (3012 / 13078)
=0.24687944 / 0.23031045
=1.0719

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)
=(6240 / 13078) / (5748 / 12658)
=0.47713718 / 0.45410017
=1.0507

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 - (4989 + 976) / 23312) / (1 - (4699 + 903) / 22362)
=0.7441232 / 0.74948573
=0.9928

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
=12658 / 13078
=0.9679

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))
=(4120 / (4120 + 903)) / (4790 / (4790 + 976))
=0.82022696 / 0.83073188
=0.9874

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)
=(2885 / 12658) / (2796 / 13078)
=0.2279191 / 0.21379416
=1.0661

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)
=((11783 + 4205) / 23312) / ((11494 + 4468) / 22362)
=0.68582704 / 0.7138002
=0.9608

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
=(1385 - 63 - 1656) / 23312
=-0.0143

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 -2.49 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 local exchange's currency.

Viacom Inc Annual Data

Dec06Dec07Dec08Dec09Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 0.94550.99060.79641.39710.84440.99571.18721.02730.95111.0265
GMI 1.07231.06431.11840.87240.96850.95170.9790.96531.08911.0379
AQI 0.9960.98051.01640.99360.97161.01520.91851.081.03081.0096
SGI 1.19351.18151.08950.90651.1250.93110.99330.99920.96260.9412
DEPI 0.89340.9270.94631.02380.96751.01930.99541.00330.96281.009
SGAI 0.84950.9951.00251.00160.98281.01371.0331.02561.02481.0591
LVGI 1.19281.040.97320.83841.0421.08621.22231.09731.00980.9501
TATA -0.0305-0.002-0.02660.03-0.02-0.0226-0.035-0.011-0.0198-0.0006
M-score -2.51-2.33-2.64-2.07-2.65-2.70-2.60-2.53-2.60-2.48

Viacom Inc Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.02731.01821.02260.91770.95111.06091.07411.12831.02651.0719
GMI 0.96531.00841.09721.09951.08911.08910.94841.01251.03791.0507
AQI 1.081.01241.10821.07041.03081.03420.99511.00081.00960.9928
SGI 0.99921.01851.00861.0020.96260.93880.93980.96870.94120.9679
DEPI 1.00330.98940.96560.96380.96281.00341.00310.98851.0090.9874
SGAI 1.02561.0131.01781.00181.02481.01781.00791.01041.05911.0661
LVGI 1.09731.10771.10371.07111.00980.97260.91740.91780.95010.9608
TATA -0.011-0.0022-0.0337-0.0279-0.0198-0.01460.01090.0166-0.0006-0.0143
M-score -2.53-2.49-2.56-2.63-2.60-2.48-2.42-2.28-2.48-2.49
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK