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Viacom, Inc. (NAS:VIAB)
Beneish M-Score
-2.57 (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 -2.57 suggests that the company is not a manipulator.

VIAB' s 10-Year Beneish M-Score Range
Min: -2.73   Max: -1.94
Current: -2.57

-2.73
-1.94

During the past 12 years, the highest Beneish M-Score of Viacom, Inc. was -1.94. The lowest was -2.73. And the median was -2.56.


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 * 1.0856+0.528 * 0.9619+0.404 * 0.9659+0.892 * 1.0323+0.115 * 0.9942
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9936+4.679 * -0.0209-0.327 * 1.1996
=-2.57

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $2,916 Mil.
Revenue was 3197 + 3652 + 3693 + 3135 = $13,677 Mil.
Gross Profit was 1723 + 2000 + 1848 + 1596 = $7,167 Mil.
Total Current Assets was $5,447 Mil.
Total Assets was $22,778 Mil.
Property, Plant and Equipment(Net PPE) was $1,025 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,495 Mil.
Selling, General & Admin. Expense(SGA) was $2,836 Mil.
Total Current Liabilities was $3,223 Mil.
Long-Term Debt was $11,868 Mil.
Net Income was 547 + 804 + 643 + 478 = $2,472 Mil.
Non Operating Income was 26 + 102 + 4 + 10 = $142 Mil.
Cash Flow from Operations was 293 + 1051 + 739 + 724 = $2,807 Mil.
Accounts Receivable was $2,602 Mil.
Revenue was 3314 + 3363 + 3241 + 3331 = $13,249 Mil.
Gross Profit was 1551 + 1799 + 1642 + 1686 = $6,678 Mil.
Total Current Assets was $4,623 Mil.
Total Assets was $21,897 Mil.
Property, Plant and Equipment(Net PPE) was $1,046 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,448 Mil.
Selling, General & Admin. Expense(SGA) was $2,765 Mil.
Total Current Liabilities was $3,722 Mil.
Long-Term Debt was $8,371 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)
=(2916 / 13677) / (2602 / 13249)
=0.21320465 / 0.19639218
=1.0856

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)
=(2000 / 13249) / (1723 / 13677)
=0.50403804 / 0.52401843
=0.9619

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 - (5447 + 1025) / 22778) / (1 - (4623 + 1046) / 21897)
=0.71586619 / 0.74110609
=0.9659

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
=13677 / 13249
=1.0323

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))
=(4448 / (4448 + 1046)) / (4495 / (4495 + 1025))
=0.80961048 / 0.81431159
=0.9942

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)
=(2836 / 13677) / (2765 / 13249)
=0.20735541 / 0.208695
=0.9936

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)
=((11868 + 3223) / 22778) / ((8371 + 3722) / 21897)
=0.66252524 / 0.55226743
=1.1996

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
=(2472 - 142 - 2807) / 22778
=-0.0209

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 -2.57 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

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Sep11Sep12Sep13
DSRI 0.94550.99060.79641.39710.84440.99571.1872
GMI 1.07231.06431.11840.87240.96850.95170.979
AQI 0.9960.98051.01640.99360.97161.01520.9185
SGI 1.19351.18151.08950.90651.1250.93110.9933
DEPI 0.89340.9270.94631.02380.96751.01930.9954
SGAI 0.84950.9951.00251.00160.98281.01371.033
LVGI 1.19281.040.97320.83841.0421.08621.2223
TATA -0.0308-0.002-0.02660.03-0.02-0.0226-0.035
M-score -2.51-2.33-2.64-2.07-2.65-2.70-2.60

Viacom, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.99081.02330.99360.91690.99570.95271.11621.2141.18721.0856
GMI 1.04921.0221.01431.010.95170.92380.9370.94950.9790.9619
AQI 0.97130.97051.0111.01681.01521.03150.98180.95610.91850.9659
SGI 1.14081.14231.10671.0330.93110.8810.86430.92650.99331.0323
DEPI 0.97940.97091.1080.99151.01931.0250.89781.0130.99540.9942
SGAI 0.9550.93490.93430.94841.01371.07851.10611.06981.0330.9936
LVGI 1.07011.13161.11581.1471.08621.04541.04351.04331.22231.1996
TATA -0.02-0.0327-0.0334-0.0277-0.0226-0.0097-0.0086-0.0264-0.035-0.0209
M-score -2.46-2.52-2.55-2.68-2.70-2.73-2.62-2.54-2.60-2.57
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