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ValueVision Media, Inc. (NAS:VVTV)
Beneish M-Score
-2.84 (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.

ValueVision Media, Inc. has a M-score of -2.84 suggests that the company is not a manipulator.

VVTV' s 10-Year Beneish M-Score Range
Min: -4.94   Max: -1.28
Current: -2.84

-4.94
-1.28

During the past 13 years, the highest Beneish M-Score of ValueVision Media, Inc. was -1.28. The lowest was -4.94. And the median was -2.61.


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 ValueVision Media, 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 * 1.0003+0.528 * 1.0077+0.404 * 0.6999+0.892 * 1.0915+0.115 * 1.0512
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9435+4.679 * -0.0705-0.327 * 1.0399
=-2.84

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

This Year (Jan14) TTM:Last Year (Jan13) TTM:
Accounts Receivable was $107.4 Mil.
Revenue was 193.253 + 147.318 + 148.564 + 151.354 = $640.5 Mil.
Gross Profit was 62.099 + 55.235 + 55.657 + 57.033 = $230.0 Mil.
Total Current Assets was $195.9 Mil.
Total Assets was $233.7 Mil.
Property, Plant and Equipment(Net PPE) was $25.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $12.6 Mil.
Selling, General & Admin. Expense(SGA) was $217.6 Mil.
Total Current Liabilities was $115.9 Mil.
Long-Term Debt was $38.1 Mil.
Net Income was -1.522 + -1.217 + -0.799 + 1.023 = $-2.5 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was 2.18 + -0.951 + 3.992 + 8.732 = $14.0 Mil.
Accounts Receivable was $98.4 Mil.
Revenue was 177.5 + 137.592 + 135.179 + 136.549 = $586.8 Mil.
Gross Profit was 58.87 + 50.79 + 51.68 + 51.032 = $212.4 Mil.
Total Current Assets was $170.7 Mil.
Total Assets was $212.1 Mil.
Property, Plant and Equipment(Net PPE) was $24.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.4 Mil.
Selling, General & Admin. Expense(SGA) was $211.3 Mil.
Total Current Liabilities was $96.4 Mil.
Long-Term Debt was $38.0 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)
=(107.386 / 640.489) / (98.36 / 586.82)
=0.16766252 / 0.16761528
=1.0003

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)
=(55.235 / 586.82) / (62.099 / 640.489)
=0.36190314 / 0.3591381
=1.0077

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 - (195.857 + 24.952) / 233.705) / (1 - (170.712 + 24.665) / 212.099)
=0.05518068 / 0.07884054
=0.6999

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
=640.489 / 586.82
=1.0915

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))
=(13.424 / (13.424 + 24.665)) / (12.585 / (12.585 + 24.952))
=0.35243771 / 0.3352692
=1.0512

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)
=(217.627 / 640.489) / (211.334 / 586.82)
=0.33978257 / 0.36013428
=0.9435

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)
=((38.088 + 115.916) / 233.705) / ((38 + 96.4) / 212.099)
=0.6589675 / 0.63366635
=1.0399

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
=(-2.515 - 0 - 13.953) / 233.705
=-0.0705

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.

ValueVision Media, Inc. has a M-score of -2.84 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.

ValueVision Media, Inc. Annual Data

Jan05Jan06Jan07Jan08Jan09Jan10Jan11Jan12Jan13Jan14
DSRI 1.05770.9931.20770.91740.64541.44351.2290.89631.16591.0003
GMI 1.08290.94760.99191.00411.07680.97820.92770.97091.00991.0077
AQI 0.90840.95790.93661.33941.02220.72640.78611.08990.63330.6999
SGI 1.05491.10941.1091.01860.72610.93021.06520.99311.05091.0915
DEPI 0.8930.89760.86561.01620.99141.05120.98441.08510.89161.0512
SGAI 1.07380.94010.96651.02891.24390.88550.95011.04530.96520.9435
LVGI 1.17931.12621.02851.1021.20591.16470.9851.16811.18961.0399
TATA -0.1073-0.0203-0.0263-0.0819-0.3845-0.0394-0.1047-0.0432-0.0886-0.0705
M-score -2.96-2.57-2.36-2.82-4.91-2.47-2.81-2.82-2.91-2.84

ValueVision Media, Inc. Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
DSRI 1.39510.89630.88730.9841.00931.16591.17120.99080.92961.0003
GMI 0.97120.97090.9750.98770.99931.00991.00791.00841.00271.0077
AQI 0.8441.08991.0181.09831.06290.63330.61810.51780.5030.6999
SGI 1.09460.99310.94930.94490.94431.05091.09111.10921.12191.0915
DEPI 1.13161.08510.98910.89020.87690.89160.92210.98711.01831.0512
SGAI 0.94951.04531.10271.09751.06350.96520.9170.90630.90950.9435
LVGI 1.02741.16810.69861.12211.13411.18961.76661.05481.02791.0399
TATA 0.033-0.0432-0.1123-0.1082-0.0994-0.0886-0.087-0.0883-0.0986-0.0705
M-score -1.94-2.82-3.08-3.09-3.03-2.91-3.04-3.00-3.09-2.84
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