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Virtutone Networks (Virtutone Networks) Beneish M-Score : 0.00 (As of Jun. 11, 2024)


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What is Virtutone Networks Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for Virtutone Networks's Beneish M-Score or its related term are showing as below:

During the past 9 years, the highest Beneish M-Score of Virtutone Networks was 18.59. The lowest was -10000000.00. And the median was -1.78.


Virtutone Networks Beneish M-Score Historical Data

The historical data trend for Virtutone Networks's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Virtutone Networks Beneish M-Score Chart

Virtutone Networks Annual Data
Trend Mar06 Mar07 Mar08 Jan09 Jan10 Jan11 Jan12 Jan13 Jan14
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only -2.59 -1.20 12.95 -4.35 -10,000,000.00

Virtutone Networks Quarterly Data
Jan10 Apr10 Jul10 Oct10 Jan11 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Oct13 Jan14 Apr14 Jul14 Oct14
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 18.39 -10,000,000.00 18.59 7.27 -

Competitive Comparison of Virtutone Networks's Beneish M-Score

For the Telecom Services subindustry, Virtutone Networks's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Virtutone Networks's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, Virtutone Networks's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Virtutone Networks's Beneish M-Score falls into.



Virtutone Networks Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Virtutone Networks 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 * 0.8982+0.528 * 0.3115+0.404 * -39.2313+0.892 * 5.8033+0.115 * -0.1409
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.0327+4.679 * 0.033402-0.327 * 0.8826
=-15.02

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Oct14) TTM:Last Year (Oct13) TTM:
Total Receivables was $26.05 Mil.
Revenue was 35.321 + 40.242 + 25.803 + 22.609 = $123.98 Mil.
Gross Profit was 1.21 + 1.469 + 0.866 + 0.367 = $3.91 Mil.
Total Current Assets was $29.62 Mil.
Total Assets was $30.75 Mil.
Property, Plant and Equipment(Net PPE) was $0.93 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.39 Mil.
Selling, General, & Admin. Expense(SGA) was $2.83 Mil.
Total Current Liabilities was $24.50 Mil.
Long-Term Debt & Capital Lease Obligation was $0.03 Mil.
Net Income was 0.353 + 0.582 + 0.031 + -0.447 = $0.52 Mil.
Non Operating Income was 0.331 + 0.164 + -0.053 + 0.101 = $0.54 Mil.
Cash Flow from Operations was 3.206 + 0.266 + -0.097 + -4.426 = $-1.05 Mil.
Total Receivables was $5.00 Mil.
Revenue was 11.803 + 8.325 + 3.139 + -1.904 = $21.36 Mil.
Gross Profit was 0.716 + 0.233 + 0.174 + -0.913 = $0.21 Mil.
Total Current Assets was $5.30 Mil.
Total Assets was $6.27 Mil.
Property, Plant and Equipment(Net PPE) was $0.97 Mil.
Depreciation, Depletion and Amortization(DDA) was $-0.04 Mil.
Selling, General, & Admin. Expense(SGA) was $0.24 Mil.
Total Current Liabilities was $5.53 Mil.
Long-Term Debt & Capital Lease Obligation was $0.14 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
=(26.048 / 123.975) / (4.997 / 21.363)
=0.210107 / 0.233909
=0.8982

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)
=(0.21 / 21.363) / (3.912 / 123.975)
=0.00983 / 0.031555
=0.3115

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 Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (29.622 + 0.932) / 30.747) / (1 - (5.296 + 0.974) / 6.269)
=0.006277 / -0.00016
=-39.2313

4. SGI = Sales Growth Index

Ratio of Revenue 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
=123.975 / 21.363
=5.8033

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
=(-0.039 / (-0.039 + 0.974)) / (0.392 / (0.392 + 0.932))
=-0.041711 / 0.296073
=-0.1409

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
=(2.831 / 123.975) / (0.24 / 21.363)
=0.022835 / 0.011234
=2.0327

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 in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((0.034 + 24.501) / 30.747) / ((0.139 + 5.529) / 6.269)
=0.797964 / 0.904131
=0.8826

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
=(0.519 - 0.543 - -1.051) / 30.747
=0.033402

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Virtutone Networks has a M-score of -15.02 suggests that the company is unlikely to be a manipulator.


Virtutone Networks Beneish M-Score Related Terms

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Virtutone Networks (Virtutone Networks) Business Description

Traded in Other Exchanges
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Address
Virtutone Networks, Inc. is incorporated under the laws of the Province of Alberta. The Company is a provider of Voice over Internet Protocol, Fax over Internet Protocol, and related phone services to business and residential customers.

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