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Magyar Telekom (LTS:0NUG) Beneish M-Score : -2.82 (As of Oct. 31, 2024)


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What is Magyar Telekom 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 -2.82 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LTS:0NUG' s Beneish M-Score Range Over the Past 10 Years
Min: -3.02   Med: -2.83   Max: -2.56
Current: -2.82

During the past 13 years, the highest Beneish M-Score of Magyar Telekom was -2.56. The lowest was -3.02. And the median was -2.83.


Magyar Telekom Beneish M-Score Historical Data

The historical data trend for Magyar Telekom'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.

Magyar Telekom Beneish M-Score Chart

Magyar Telekom Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.97 -2.93 -3.02 -2.86 -2.82

Magyar Telekom Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
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 - - -2.82 - -

Competitive Comparison of Magyar Telekom's Beneish M-Score

For the Telecom Services subindustry, Magyar Telekom'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.


Magyar Telekom's Beneish M-Score Distribution in the Telecommunication Services Industry

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

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



Magyar Telekom 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 Magyar Telekom 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 * 1.0198+0.528 * 0.9748+0.404 * 0.9369+0.892 * 1.1375+0.115 * 0.9969
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9259+4.679 * -0.098235-0.327 * 0.9698
=-2.82

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was Ft221,576 Mil.
Revenue was Ft849,372 Mil.
Gross Profit was Ft493,053 Mil.
Total Current Assets was Ft285,276 Mil.
Total Assets was Ft1,463,831 Mil.
Property, Plant and Equipment(Net PPE) was Ft598,852 Mil.
Depreciation, Depletion and Amortization(DDA) was Ft139,168 Mil.
Selling, General, & Admin. Expense(SGA) was Ft10,045 Mil.
Total Current Liabilities was Ft347,184 Mil.
Long-Term Debt & Capital Lease Obligation was Ft226,324 Mil.
Net Income was Ft78,951 Mil.
Gross Profit was Ft0 Mil.
Cash Flow from Operations was Ft222,750 Mil.
Total Receivables was Ft191,007 Mil.
Revenue was Ft746,669 Mil.
Gross Profit was Ft422,518 Mil.
Total Current Assets was Ft241,327 Mil.
Total Assets was Ft1,456,417 Mil.
Property, Plant and Equipment(Net PPE) was Ft599,447 Mil.
Depreciation, Depletion and Amortization(DDA) was Ft138,768 Mil.
Selling, General, & Admin. Expense(SGA) was Ft9,537 Mil.
Total Current Liabilities was Ft306,924 Mil.
Long-Term Debt & Capital Lease Obligation was Ft281,457 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)
=(221576 / 849372) / (191007 / 746669)
=0.26087 / 0.255812
=1.0198

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)
=(422518 / 746669) / (493053 / 849372)
=0.565871 / 0.580491
=0.9748

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 - (285276 + 598852) / 1463831) / (1 - (241327 + 599447) / 1456417)
=0.396018 / 0.422711
=0.9369

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
=849372 / 746669
=1.1375

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))
=(138768 / (138768 + 599447)) / (139168 / (139168 + 598852))
=0.187978 / 0.188569
=0.9969

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)
=(10045 / 849372) / (9537 / 746669)
=0.011826 / 0.012773
=0.9259

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)
=((226324 + 347184) / 1463831) / ((281457 + 306924) / 1456417)
=0.391786 / 0.403992
=0.9698

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
=(78951 - 0 - 222750) / 1463831
=-0.098235

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.

Magyar Telekom has a M-score of -2.82 suggests that the company is unlikely to be a manipulator.


Magyar Telekom Beneish M-Score Related Terms

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Magyar Telekom Business Description

Traded in Other Exchanges
Address
Konyves Kalman Korut. 36, Budapest, HUN, 1097
Magyar Telekom PLC is a telecommunications company that operates in two segments: MT-Hungary and North Macedonia. MT Hungary supplies mobile, information communication, television distribution, and system integration services to both business and residential consumers in Hungary. The North Macedonia segment expands the company's mobile and fixed-line telecommunication services across North Macedonia. Magyar controls the largest share of the Hungarian telecom market and has a footprint in Macedonia, Bulgaria, and Romania. The company receives most of its revenue from Hungary.

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