Switch to:
Viacom Inc (NAS:VIA)
Beneish M-Score
-2.48 (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 -2.48 suggests that the company is not a manipulator.

VIA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.7   Max: -1.99
Current: -2.48

-2.7
-1.99

During the past 13 years, the highest Beneish M-Score of Viacom Inc was -1.99. The lowest was -2.70. And the median was -2.47.


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 * 1.0265+0.528 * 1.0379+0.404 * 1.0096+0.892 * 0.9412+0.115 * 1.009
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0591+4.679 * -0.0006-0.327 * 0.9501
=-2.48

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $2,712 Mil.
Revenue was $12,488 Mil.
Gross Profit was $5,804 Mil.
Total Current Assets was $4,522 Mil.
Total Assets was $22,508 Mil.
Property, Plant and Equipment(Net PPE) was $932 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,789 Mil.
Selling, General & Admin. Expense(SGA) was $2,851 Mil.
Total Current Liabilities was $3,672 Mil.
Long-Term Debt was $11,896 Mil.
Net Income was $1,438 Mil.
Non Operating Income was $80 Mil.
Cash Flow from Operations was $1,371 Mil.
Accounts Receivable was $2,807 Mil.
Revenue was $13,268 Mil.
Gross Profit was $6,400 Mil.
Total Current Assets was $4,578 Mil.
Total Assets was $22,143 Mil.
Property, Plant and Equipment(Net PPE) was $947 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,147 Mil.
Selling, General & Admin. Expense(SGA) was $2,860 Mil.
Total Current Liabilities was $3,853 Mil.
Long-Term Debt was $12,267 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)
=(2712 / 12488) / (2807 / 13268)
=0.21716848 / 0.21156165
=1.0265

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)
=(6400 / 13268) / (5804 / 12488)
=0.48236358 / 0.46476618
=1.0379

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 - (4522 + 932) / 22508) / (1 - (4578 + 947) / 22143)
=0.75768616 / 0.75048548
=1.0096

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
=12488 / 13268
=0.9412

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))
=(5147 / (5147 + 947)) / (4789 / (4789 + 932))
=0.84460125 / 0.83709142
=1.009

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)
=(2851 / 12488) / (2860 / 13268)
=0.22829917 / 0.21555623
=1.0591

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)
=((11896 + 3672) / 22508) / ((12267 + 3853) / 22143)
=0.69166519 / 0.7279953
=0.9501

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
=(1438 - 80 - 1371) / 22508
=-0.0006

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 -2.48 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

Dec07Dec08Dec09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 0.99060.79641.39710.84440.99571.18721.02730.95111.0265
GMI 1.06431.11840.87240.96850.95170.9790.96531.08911.0379
AQI 0.98051.01640.99360.97161.01520.91851.081.03081.0096
SGI 1.18151.08950.90651.1250.93110.99330.99920.96260.9412
DEPI 0.9270.94631.02380.96751.01930.99541.00330.96281.009
SGAI 0.9951.00251.00160.98281.01371.0331.02561.02481.0591
LVGI 1.040.97320.83841.0421.08621.22231.09731.00980.9501
TATA -0.002-0.02660.03-0.02-0.0226-0.035-0.011-0.0198-0.0006
M-score -2.33-2.64-2.07-2.65-2.70-2.60-2.53-2.60-2.48
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