Telefonica Brasil (BSP:VIVT3) Beneish M-Score : -2.98 (As of Mar. 29, 2025)

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What is Telefonica Brasil 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.

Good Sign:

Beneish M-Score -2.98 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BSP:VIVT3' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42 Med: -2.9 Max: -2.49
Current: -2.98

During the past 13 years, the highest Beneish M-Score of Telefonica Brasil was -2.49. The lowest was -3.42. And the median was -2.90.

Telefonica Brasil Beneish M-Score Historical Data

The historical data trend for Telefonica Brasil'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.

Telefonica Brasil Beneish M-Score Chart

Telefonica Brasil Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-3.42

-2.67

-3.08

-2.95

-2.98

Telefonica Brasil Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.95	-	-2.91	-2.91	-2.98

Competitive Comparison of Telefonica Brasil's Beneish M-Score

For the Telecom Services subindustry, Telefonica Brasil'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.

Telefonica Brasil's Beneish M-Score Distribution in the Telecommunication Services Industry

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

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

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Telefonica Brasil 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 Telefonica Brasil for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9813

0.528 * 0.9927

0.404 * 0.9688

0.892 * 1.0719

0.115 * 0.9634

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9735

4.679 * -0.108409

0.327 * 1.0848

-2.98

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was R$12,630 Mil.
Revenue was 14581.42 + 14039.057 + 13678.936 + 13545.635 = R$55,845 Mil.
Gross Profit was 6151.048 + 6243.782 + 6070.917 + 6027.143 = R$24,493 Mil.
Total Current Assets was R$22,814 Mil.
Total Assets was R$124,941 Mil.
Property, Plant and Equipment(Net PPE) was R$46,812 Mil.
Depreciation, Depletion and Amortization(DDA) was R$14,202 Mil.
Selling, General, & Admin. Expense(SGA) was R$12,065 Mil.
Total Current Liabilities was R$24,258 Mil.
Long-Term Debt & Capital Lease Obligation was R$14,299 Mil.
Net Income was 1763.043 + 1667.444 + 1221.83 + 895.631 = R$5,548 Mil.
Non Operating Income was 516.241 + -486.599 + -266.129 + -547.468 = R$-784 Mil.
Cash Flow from Operations was 4569.869 + 4660.435 + 5721.058 + 4925.206 = R$19,877 Mil.

Total Receivables was R$12,008 Mil.
Revenue was 13534.726 + 13111.806 + 12732.709 + 12720.91 = R$52,100 Mil.
Gross Profit was 5830.152 + 5659.458 + 5687.627 + 5507.514 = R$22,685 Mil.
Total Current Assets was R$19,245 Mil.
Total Assets was R$120,738 Mil.
Property, Plant and Equipment(Net PPE) was R$46,318 Mil.
Depreciation, Depletion and Amortization(DDA) was R$13,390 Mil.
Selling, General, & Admin. Expense(SGA) was R$11,562 Mil.
Total Current Liabilities was R$20,084 Mil.
Long-Term Debt & Capital Lease Obligation was R$14,262 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)
	=	(12630.379 / 55845.048)	/	(12008.491 / 52100.151)
	=	0.226168	/	0.230489
	=	0.9813

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)
	=	(22684.751 / 52100.151)	/	(24492.89 / 55845.048)
	=	0.435407	/	0.438587
	=	0.9927

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 - (22814.327 + 46812.381) / 124940.673)	/	(1 - (19244.962 + 46318.147) / 120737.98)
	=	0.442722	/	0.45698
	=	0.9688

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
	=	55845.048	/	52100.151
	=	1.0719

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))
	=	(13389.573 / (13389.573 + 46318.147))	/	(14202.285 / (14202.285 + 46812.381))
	=	0.224252	/	0.232768
	=	0.9634

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)
	=	(12064.523 / 55845.048)	/	(11561.622 / 52100.151)
	=	0.216036	/	0.221911
	=	0.9735

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)
	=	((14298.572 + 24257.939) / 124940.673)	/	((14261.567 + 20084.184) / 120737.98)
	=	0.308599	/	0.284465
	=	1.0848

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
	=	(5547.948 - -783.955	-	19876.568)	/	124940.673
	=	-0.108409

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.

Telefonica Brasil has a M-score of -2.98 suggests that the company is unlikely to be a manipulator.

Telefonica Brasil Beneish M-Score Related Terms

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Telefonica Brasil Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telefonica Brasil SA (BSP:VIVT3) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

VIV:USA TSPA:Germany TSPA:Germany VIV:Argentina

Address

Avenida Engenheiro Luis Carlos Berrini, 1376, 32nd Floor, Sao Paulo, SP, BRA, 04571-936

Website

https://www.telefonica.com.br

Telefonica Brasil, known as Vivo, is the largest wireless carrier in Brazil with 100 million customers, which is equal to about 39% market share. The firm is strongest in the postpaid business, where it has 65 million customers, or about 41% share of this market. Wireless services and equipment contribute about 70% of total revenue. Vivo is the incumbent fixed-line telephone operator in Sao Paulo state and, following the acquisition of GVT, the owner of an extensive fiber network across the country. The firm provides internet access to 7 million households on this network. The firm also sells pay-tv and phone services to its fixed-line customers. Finally, corporate data and IT services, including cloud computing support, contribute about 8% of total revenue.

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