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Viacom Inc (NAS:VIAB)
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.

VIAB' s Beneish M-Score Range Over the Past 10 Years
Min: -2.7   Max: -2.07
Current: -2.6

-2.7
-2.07

During the past 13 years, the highest Beneish M-Score of Viacom Inc was -2.07. The lowest was -2.70. 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 * 0.9511+0.528 * 1.0891+0.404 * 1.027+0.892 * 0.9626+0.115 * 0.9628
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0248+4.679 * -0.0198-0.327 * 1.0065
=-2.60

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $2,807 Mil.
Revenue was 3788 + 3058 + 3078 + 3344 = $13,268 Mil.
Gross Profit was 1851 + 1806 + 1022 + 1721 = $6,400 Mil.
Total Current Assets was $4,658 Mil.
Total Assets was $22,217 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 $3,854 Mil.
Long-Term Debt was $12,267 Mil.
Net Income was 884 + 591 + -53 + 500 = $1,922 Mil.
Non Operating Income was -25 + 28 + 30 + 15 = $48 Mil.
Cash Flow from Operations was 1233 + 400 + 624 + 56 = $2,313 Mil.
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 $23,047 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 $12,681 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)
=(2807 / 13268) / (3066 / 13783)
=0.21156165 / 0.22244794
=0.9511

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)
=(1806 / 13783) / (1851 / 13268)
=0.52535732 / 0.48236358
=1.0891

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 - (4658 + 947) / 22217) / (1 - (5252 + 1016) / 23047)
=0.74771571 / 0.72803402
=1.027

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
=13268 / 13783
=0.9626

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))
=(4423 / (4423 + 1016)) / (5147 / (5147 + 947))
=0.81320096 / 0.84460125
=0.9628

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)
=(2860 / 13268) / (2899 / 13783)
=0.21555623 / 0.21033157
=1.0248

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)
=((12267 + 3854) / 22217) / ((12681 + 3935) / 23047)
=0.72561552 / 0.72096151
=1.0065

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
=(1922 - 48 - 2313) / 22217
=-0.0198

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

Dec05Dec06Dec07Dec08Dec09Sep11Sep12Sep13Sep14Sep15
DSRI 0.89070.94550.99060.79641.39710.84440.99571.18721.02730.9511
GMI 0.96061.07231.06431.11840.87240.96850.95170.9790.96531.0891
AQI 0.93020.9960.98051.01640.99360.97161.01520.91851.081.027
SGI 1.30331.19351.18151.08950.90651.1250.93110.99330.99920.9626
DEPI 0.2570.89340.9270.94631.02380.96751.01930.99541.00330.9628
SGAI 1.24720.84950.9951.00251.00160.98281.01371.0331.02561.0248
LVGI 2.66371.19281.040.97320.83841.0421.08621.22231.09731.0065
TATA -0.0188-0.0308-0.002-0.02660.03-0.02-0.0226-0.035-0.011-0.0198
M-score -3.12-2.51-2.33-2.64-2.07-2.65-2.70-2.60-2.53-2.60

Viacom Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.2141.18721.08560.99991.02321.02731.01821.02260.91770.9511
GMI 0.94950.9790.96190.96050.93740.96531.00841.09721.09951.0891
AQI 0.95610.91850.96590.94810.99131.081.01241.10821.07041.027
SGI 0.92650.99331.03231.05080.99550.99921.01851.00861.0020.9626
DEPI 1.08820.99541.03571.06251.00531.00330.98940.96560.96380.9628
SGAI 1.06981.0330.99360.98621.0371.02561.0131.01781.00181.0248
LVGI 1.04331.22231.19961.25991.24791.09731.10771.10371.07111.0065
TATA -0.0264-0.035-0.0209-0.0103-0.0044-0.011-0.0022-0.0337-0.0279-0.0198
M-score -2.53-2.60-2.56-2.60-2.61-2.53-2.49-2.56-2.63-2.60
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