Leap Wireless International, (FRA:LWI) Beneish M-Score : 0.00 (As of May. 01, 2024)

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What is Leap Wireless International, 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 Leap Wireless International,'s Beneish M-Score or its related term are showing as below:

During the past 13 years, the highest Beneish M-Score of Leap Wireless International, was 0.00. The lowest was 0.00. And the median was 0.00.

Leap Wireless International, Beneish M-Score Historical Data

The historical data trend for Leap Wireless International,'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.

Leap Wireless International, Beneish M-Score Chart

Leap Wireless International, Annual Data

Trend

Dec04

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Beneish M-Score

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-3.59

-3.55

-2.92

-2.83

-3.19

Leap Wireless International, Quarterly Data
	Mar09	Jun09	Sep09	Dec09	Mar10	Jun10	Sep10	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13
Beneish M-Score	Get a 7-Day Free Trial															-2.83	-3.77	-2.58	-3.09	-3.19

Competitive Comparison of Leap Wireless International,'s Beneish M-Score

For the Telecom Services subindustry, Leap Wireless International,'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.

Leap Wireless International,'s Beneish M-Score Distribution in the Telecommunication Services Industry

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

* The bar in red indicates where Leap Wireless International,'s Beneish M-Score falls into.

Leap Wireless International, 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 Leap Wireless International, 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 * 1

0.528 * 1.1602

0.404 * 1.0654

0.892 * 0.8983

0.115 * 0.8403

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.983

4.679 * -0.150776

0.327 * 1.1442

-3.23

This Year (Dec13) TTM:

Last Year (Dec12) TTM:

Total Receivables was €0 Mil.
Revenue was 498.356 + 519.106 + 554.51 + 609.77 = €2,182 Mil.
Gross Profit was 148.529 + 183.034 + 226.274 + 216.185 = €774 Mil.
Total Current Assets was €867 Mil.
Total Assets was €3,404 Mil.
Property, Plant and Equipment(Net PPE) was €924 Mil.
Depreciation, Depletion and Amortization(DDA) was €777 Mil.
Selling, General, & Admin. Expense(SGA) was €477 Mil.
Total Current Liabilities was €614 Mil.
Long-Term Debt & Capital Lease Obligation was €2,456 Mil.
Net Income was -132.114 + -138.686 + -123.637 + -85.933 = €-480 Mil.
Non Operating Income was -2.256 + -5.988 + -54.039 + -0.894 = €-63 Mil.
Cash Flow from Operations was 41.651 + 29.207 + 3.547 + 21.631 = €96 Mil.

Total Receivables was €0 Mil.
Revenue was 576.055 + 600.602 + 627.057 + 624.994 = €2,429 Mil.
Gross Profit was 238.672 + 235.691 + 285.76 + 239.561 = €1,000 Mil.
Total Current Assets was €760 Mil.
Total Assets was €3,785 Mil.
Property, Plant and Equipment(Net PPE) was €1,343 Mil.
Depreciation, Depletion and Amortization(DDA) was €836 Mil.
Selling, General, & Admin. Expense(SGA) was €540 Mil.
Total Current Liabilities was €470 Mil.
Long-Term Debt & Capital Lease Obligation was €2,513 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)
	=	(0 / 2181.742)	/	(0 / 2428.708)
	=	0	/	0
	=	1

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)
	=	(999.684 / 2428.708)	/	(774.022 / 2181.742)
	=	0.411611	/	0.354772
	=	1.1602

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 - (867.194 + 924.452) / 3403.908)	/	(1 - (759.548 + 1342.713) / 3785.052)
	=	0.47365	/	0.444589
	=	1.0654

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
	=	2181.742	/	2428.708
	=	0.8983

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))
	=	(836.333 / (836.333 + 1342.713))	/	(777.179 / (777.179 + 924.452))
	=	0.383807	/	0.456726
	=	0.8403

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)
	=	(476.923 / 2181.742)	/	(540.102 / 2428.708)
	=	0.218597	/	0.222382
	=	0.983

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)
	=	((2456.134 + 613.931) / 3403.908)	/	((2513.429 + 470.146) / 3785.052)
	=	0.901924	/	0.788252
	=	1.1442

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
	=	(-480.37 - -63.177	-	96.036)	/	3403.908
	=	-0.150776

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.

Leap Wireless International, has a M-score of -3.23 suggests that the company is unlikely to be a manipulator.

Leap Wireless International, Beneish M-Score Related Terms

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Leap Wireless International, (FRA:LWI) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Leap Wireless International, Inc. (FRA:LWI) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

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Address

Website

http://www.leapwireless.com

Leap Wireless International, Inc., was formed as a Delaware corporation in 1998. The Company is a wireless communications carrier that offers digital wireless services in the U.S. under the 'Cricket' brand. Its Cricket service offerings provide customers with unlimited nationwide wireless services for a flat rate without requiring a fixed-term contract or a credit check. Cricket service is offered by Cricket, a wholly-owned subsidiary of Leap. As of December 31, 2012, Cricket service was offered in 48 states and the District of Columbia across an extended area covering approximately 292 million POPs. As of December 31, 2012, it had approximately 5.3 million customers, and it owned wireless licenses covering an aggregate of approximately 136.7 million POPs (adjusted to eliminate duplication from overlapping licenses). The combined network footprint in its operating markets covered approximately96.2 million POPs as of December 31, 2012. The licenses it own provide an average of 23 MHz of coverage in its operating markets. The Company has entered into roaming relationships with other wireless carriers that enable it to offer Cricket customers nationwide voice and data roaming services over an extended service area. It recently entered into an agreement with a national carrier for 4G LTE roaming services. In addition, it has also entered into a wholesale agreement, which it use to offer Cricket services in nationwide retailers outside of its current network footprint, and it recently amended that agreement to enable its customers to receive 4G LTE services. The service plans it currently offers are 'all-inclusive,' with telecommunication taxes and certain fees included within the service plan price. The Company competes with national facilities-based wireless providers and their prepaid affiliates or brands, local and regional carriers, non-facilities-based mobile virtual network operators, or MVNOs, voice-over-internet-protocol service providers and traditional landline service providers, including cable companies. Leap is a U.S. registered trademark and the Leap logo is a trademark of Leap. The Company's operations are subject to various other laws and regulations, including those regulations promulgated by the Federal Trade Commission, the Federal Aviation Administration, the Environmental Protection Agency, the Occupational Safety and Health Administration, other federal agencies and state and local regulatory agencies and legislative bodies.

Leap Wireless International, (FRA:LWI) Headlines

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