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ValueVision Media Inc (NAS:VVTV)
Beneish M-Score
-2.63 (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 -2.63 suggests that the company is not a manipulator.

VVTV' s 10-Year Beneish M-Score Range
Min: -4.94   Max: -1.23
Current: -2.63

-4.94
-1.23

During the past 13 years, the highest Beneish M-Score of ValueVision Media Inc was -1.23. The lowest was -4.94. And the median was -2.52.


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 * 0.9774+0.528 * 1.0108+0.404 * 0.805+0.892 * 1.0785+0.115 * 1.1343
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9789+4.679 * -0.0308-0.327 * 0.9931
=-2.63

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

This Year (Apr14) TTM:Last Year (Apr13) TTM:
Accounts Receivable was $96.6 Mil.
Revenue was 159.701 + 193.253 + 147.318 + 148.564 = $648.8 Mil.
Gross Profit was 60.006 + 62.099 + 55.235 + 55.657 = $233.0 Mil.
Total Current Assets was $182.8 Mil.
Total Assets was $221.2 Mil.
Property, Plant and Equipment(Net PPE) was $25.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $11.7 Mil.
Selling, General & Admin. Expense(SGA) was $222.2 Mil.
Total Current Liabilities was $101.7 Mil.
Long-Term Debt was $38.1 Mil.
Net Income was 0.46 + -1.522 + -1.217 + -0.799 = $-3.1 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0.0 Mil.
Cash Flow from Operations was -1.493 + 2.18 + -0.951 + 3.992 = $3.7 Mil.
Accounts Receivable was $91.7 Mil.
Revenue was 151.354 + 177.5 + 137.592 + 135.179 = $601.6 Mil.
Gross Profit was 57.033 + 58.87 + 50.79 + 51.68 = $218.4 Mil.
Total Current Assets was $179.9 Mil.
Total Assets was $219.7 Mil.
Property, Plant and Equipment(Net PPE) was $23.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $13.2 Mil.
Selling, General & Admin. Expense(SGA) was $210.4 Mil.
Total Current Liabilities was $101.8 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)
=(96.638 / 648.836) / (91.677 / 601.625)
=0.14894056 / 0.1523823
=0.9774

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)
=(62.099 / 601.625) / (60.006 / 648.836)
=0.36297195 / 0.35909999
=1.0108

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 - (182.771 + 25.569) / 221.204) / (1 - (179.949 + 23.847) / 219.664)
=0.05815446 / 0.0722376
=0.805

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
=648.836 / 601.625
=1.0785

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))
=(13.197 / (13.197 + 23.847)) / (11.707 / (11.707 + 25.569))
=0.35625202 / 0.31406267
=1.1343

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)
=(222.169 / 648.836) / (210.446 / 601.625)
=0.34241164 / 0.34979597
=0.9789

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)
=((38.08 + 101.744) / 221.204) / ((38 + 101.813) / 219.664)
=0.6321043 / 0.63648572
=0.9931

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
=(-3.078 - 0 - 3.728) / 221.204
=-0.0308

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 -2.63 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

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
DSRI 0.89630.88730.9841.00931.16591.17120.99080.92961.00030.9774
GMI 0.97090.9750.98770.99931.00991.00791.00841.00271.00771.0108
AQI 1.08991.0181.09831.06290.63330.61810.51780.5030.69990.805
SGI 0.99310.94930.94490.94431.05091.09111.10921.12191.09151.0785
DEPI 1.08510.98910.89020.87690.89160.92210.98711.01831.05121.1343
SGAI 1.04531.10271.09751.06350.96520.9170.90630.90950.94350.9789
LVGI 1.16810.69861.12211.13411.18961.76661.05481.02791.03990.9931
TATA -0.0432-0.1123-0.1082-0.0994-0.0886-0.087-0.0883-0.0986-0.0705-0.0308
M-score -2.82-3.08-3.09-3.03-2.91-3.04-3.00-3.09-2.84-2.63
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