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Viacom Inc (NAS:VIA)
Beneish M-Score
-2.53 (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 -2.53 suggests that the company is not a manipulator.

VIA' s 10-Year Beneish M-Score Range
Min: -2.7   Max: -2.15
Current: -2.53

-2.7
-2.15

During the past 13 years, the highest Beneish M-Score of Viacom Inc was -2.15. The lowest was -2.70. And the median was -2.51.


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 * 1.0273+0.528 * 0.9653+0.404 * 1.0812+0.892 * 0.9992+0.115 * 0.9532
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0256+4.679 * -0.0109-0.327 * 1.0985
=-2.53

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $3,066 Mil.
Revenue was 3991 + 3421 + 3174 + 3197 = $13,783 Mil.
Gross Profit was 2026 + 1856 + 1636 + 1723 = $7,241 Mil.
Total Current Assets was $5,252 Mil.
Total Assets was $23,117 Mil.
Property, Plant and Equipment(Net PPE) was $1,016 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,423 Mil.
Selling, General & Admin. Expense(SGA) was $2,899 Mil.
Total Current Liabilities was $3,935 Mil.
Long-Term Debt was $12,751 Mil.
Net Income was 732 + 610 + 502 + 547 = $2,391 Mil.
Non Operating Income was 0 + 14 + 7 + 26 = $47 Mil.
Cash Flow from Operations was 1234 + 550 + 520 + 293 = $2,597 Mil.
Accounts Receivable was $2,987 Mil.
Revenue was 3652 + 3693 + 3135 + 3314 = $13,794 Mil.
Gross Profit was 2000 + 1848 + 1596 + 1551 = $6,995 Mil.
Total Current Assets was $6,726 Mil.
Total Assets was $23,829 Mil.
Property, Plant and Equipment(Net PPE) was $1,040 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,586 Mil.
Selling, General & Admin. Expense(SGA) was $2,829 Mil.
Total Current Liabilities was $3,790 Mil.
Long-Term Debt was $11,867 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)
=(3066 / 13783) / (2987 / 13794)
=0.22244794 / 0.21654342
=1.0273

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)
=(1856 / 13794) / (2026 / 13783)
=0.50710454 / 0.52535732
=0.9653

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 - (5252 + 1016) / 23117) / (1 - (6726 + 1040) / 23829)
=0.72885755 / 0.67409459
=1.0812

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
=13783 / 13794
=0.9992

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))
=(3586 / (3586 + 1040)) / (4423 / (4423 + 1016))
=0.77518374 / 0.81320096
=0.9532

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)
=(2899 / 13783) / (2829 / 13794)
=0.21033157 / 0.20508917
=1.0256

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)
=((12751 + 3935) / 23117) / ((11867 + 3790) / 23829)
=0.72180646 / 0.65705653
=1.0985

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
=(2391 - 47 - 2597) / 23117
=-0.0109

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 -2.53 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

Dec04Dec05Dec06Dec07Dec08Dec09Sep11Sep12Sep13Sep14
DSRI 0.9170.94660.99880.79641.36230.86590.99571.18721.0273
GMI 01.0751.05651.11840.90130.93750.95170.9790.9653
AQI 0.94590.9960.98051.01640.99330.97181.01520.91851.0812
SGI 1.18171.19321.17061.08950.93121.09510.93110.99330.9992
DEPI 1.03040.25030.9272.96960.32630.96731.01930.99541.0033
SGAI 1.18130.8471.00221.00251.010.97461.01371.0331.0256
LVGI 2.48511.19281.040.97320.83841.0421.08621.22231.0985
TATA -0.0184-0.0308-0.002-0.02660.03-0.02-0.0226-0.035-0.0109
M-score -3.54-2.59-2.34-2.41-2.15-2.67-2.70-2.60-2.53

Viacom Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.91690.99570.95271.11621.2141.18721.08560.99991.02321.0273
GMI 1.010.95170.92380.9370.94950.9790.96190.96050.93740.9653
AQI 1.01681.01521.03150.98180.95610.91850.96590.94810.99131.0812
SGI 1.0330.93110.8810.86430.92650.99331.03231.05080.99550.9992
DEPI 0.69551.01931.01660.980.9531.04761.0011.03711.07070.9532
SGAI 0.94841.01371.07851.10611.06981.0330.99360.98621.0371.0256
LVGI 1.1471.08621.04541.04351.04331.22231.19961.25991.24791.0985
TATA -0.0277-0.0226-0.0097-0.0086-0.0264-0.035-0.0209-0.0103-0.0044-0.0109
M-score -2.72-2.70-2.73-2.61-2.55-2.59-2.57-2.60-2.60-2.53
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