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Viacom Inc (NAS:VIAB)
Beneish M-Score
-2.42 (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 -2.42 suggests that the company is not a manipulator.

VIAB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.73   Max: -1.95
Current: -2.42

-2.73
-1.95

During the past 13 years, the highest Beneish M-Score of Viacom Inc was -1.95. The lowest was -2.73. And the median was -2.58.


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 * 1.0741+0.528 * 0.9484+0.404 * 0.9951+0.892 * 0.9398+0.115 * 1.0031
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0079+4.679 * 0.0109-0.327 * 0.9174
=-2.42

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2,784 Mil.
Revenue was 3001 + 3154 + 3788 + 3058 = $13,001 Mil.
Gross Profit was 1347 + 1561 + 1851 + 1806 = $6,565 Mil.
Total Current Assets was $4,734 Mil.
Total Assets was $22,565 Mil.
Property, Plant and Equipment(Net PPE) was $879 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,671 Mil.
Selling, General & Admin. Expense(SGA) was $2,780 Mil.
Total Current Liabilities was $4,470 Mil.
Long-Term Debt was $11,496 Mil.
Net Income was 303 + 449 + 884 + 591 = $2,227 Mil.
Non Operating Income was 29 + 33 + -25 + 28 = $65 Mil.
Cash Flow from Operations was 410 + -126 + 1233 + 400 = $1,917 Mil.
Accounts Receivable was $2,758 Mil.
Revenue was 3078 + 3344 + 3991 + 3421 = $13,834 Mil.
Gross Profit was 1022 + 1721 + 2026 + 1856 = $6,625 Mil.
Total Current Assets was $4,383 Mil.
Total Assets was $21,757 Mil.
Property, Plant and Equipment(Net PPE) was $949 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,143 Mil.
Selling, General & Admin. Expense(SGA) was $2,935 Mil.
Total Current Liabilities was $3,567 Mil.
Long-Term Debt was $13,213 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)
=(2784 / 13001) / (2758 / 13834)
=0.21413737 / 0.19936389
=1.0741

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)
=(1561 / 13834) / (1347 / 13001)
=0.47889258 / 0.50496116
=0.9484

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 - (4734 + 879) / 22565) / (1 - (4383 + 949) / 21757)
=0.75125194 / 0.75492945
=0.9951

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
=13001 / 13834
=0.9398

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))
=(5143 / (5143 + 949)) / (4671 / (4671 + 879))
=0.84422193 / 0.84162162
=1.0031

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)
=(2780 / 13001) / (2935 / 13834)
=0.21382971 / 0.21215845
=1.0079

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)
=((11496 + 4470) / 22565) / ((13213 + 3567) / 21757)
=0.70755595 / 0.77124604
=0.9174

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
=(2227 - 65 - 1917) / 22565
=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 -2.42 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

Dec05Dec06Dec07Dec08Dec09Sep11Sep12Sep13Sep14Sep15
DSRI 0.94550.99060.79641.36230.86590.99571.18721.02730.9511
GMI 1.07231.06431.11840.90130.93750.95170.9790.96531.0891
AQI 0.9960.98051.01640.99330.97181.01520.91851.08121.0259
SGI 1.19351.18151.08950.93121.09510.93110.99330.99920.9626
DEPI 0.89340.9270.94631.0240.96731.01930.99541.00330.9628
SGAI 0.84950.9951.00251.010.97461.01371.0331.02561.0248
LVGI 1.19281.040.97320.83841.0421.08621.22231.09851.0053
TATA -0.0305-0.002-0.02660.03-0.02-0.0226-0.035-0.0109-0.0198
M-score -2.51-2.33-2.64-2.07-2.67-2.70-2.60-2.53-2.60

Viacom Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.08560.99991.02321.02731.01821.02260.91770.95111.06091.0741
GMI 0.96190.96050.93740.96531.00841.09721.09951.08911.08910.9484
AQI 0.96590.94810.99131.08121.01241.10821.07041.02591.03420.9951
SGI 1.03231.05080.99550.99921.01851.00861.0020.96260.93880.9398
DEPI 0.96650.94651.08931.00331.02471.02430.96380.96280.96741.0031
SGAI 0.99360.98621.0371.02561.0131.01781.00181.02481.01781.0079
LVGI 1.19961.25991.24791.09851.10771.10371.07111.00530.97260.9174
TATA -0.0209-0.0103-0.0044-0.0109-0.0022-0.0337-0.0279-0.0198-0.01460.0109
M-score -2.57-2.61-2.60-2.53-2.48-2.55-2.63-2.60-2.48-2.42
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