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Liberty Global Beneish M-Score

: -2.85 (As of Today)
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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 -2.85 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

LBTYK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.67   Med: -2.73   Max: 14.03
Current: -2.85

During the past 13 years, the highest Beneish M-Score of Liberty Global was 14.03. The lowest was -3.67. And the median was -2.73.


Liberty Global Beneish M-Score Historical Data

The historical data trend for Liberty Global'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.

Liberty Global Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.67 -3.03 -1.79 -2.55 -3.13

Liberty Global Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Beneish M-Score 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 Premium Member Only Premium Member Only Premium Member Only -2.14 -2.27 -3.13 -2.93 -2.85

Competitive Comparison

For the Telecom Services subindustry, Liberty Global'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.

   

Liberty Global Beneish M-Score Distribution

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

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



Liberty Global 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 Liberty Global 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 * 1.4091+0.528 * 0.985+0.404 * 0.9991+0.892 * 0.5875+0.115 * 0.8079
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1853+4.679 * -0.0687-0.327 * 0.9916
=-2.85

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $768 Mil.
Revenue was 1754.2 + 1853.3 + 1920.8 + 1901.4 = $7,430 Mil.
Gross Profit was 1273.6 + 1316.5 + 1348.9 + 1379 = $5,318 Mil.
Total Current Assets was $5,605 Mil.
Total Assets was $44,160 Mil.
Property, Plant and Equipment(Net PPE) was $6,325 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,274 Mil.
Selling, General, & Admin. Expense(SGA) was $1,710 Mil.
Total Current Liabilities was $3,586 Mil.
Long-Term Debt & Capital Lease Obligation was $14,128 Mil.
Net Income was 2786.6 + 1038.3 + 636.1 + 277.1 = $4,738 Mil.
Non Operating Income was 2395.9 + 1222.9 + 794 + 340.5 = $4,753 Mil.
Cash Flow from Operations was 757.4 + 656.7 + 991.3 + 612.6 = $3,018 Mil.
Total Receivables was $927 Mil.
Revenue was 2989.2 + 3499.9 + 3311.7 + 2845.4 = $12,646 Mil.
Gross Profit was 2145.3 + 2420.5 + 2296.1 + 2054.4 = $8,916 Mil.
Total Current Assets was $5,501 Mil.
Total Assets was $48,555 Mil.
Property, Plant and Equipment(Net PPE) was $7,585 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,061 Mil.
Selling, General, & Admin. Expense(SGA) was $2,456 Mil.
Total Current Liabilities was $4,192 Mil.
Long-Term Debt & Capital Lease Obligation was $15,450 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)
=(767.6 / 7429.7) / (927.2 / 12646.2)
=0.10331507 / 0.07331847
=1.4091

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)
=(8916.3 / 12646.2) / (5318 / 7429.7)
=0.70505765 / 0.71577587
=0.985

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 - (5604.5 + 6325) / 44159.6) / (1 - (5500.9 + 7585.2) / 48554.6)
=0.72985489 / 0.73048692
=0.9991

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
=7429.7 / 12646.2
=0.5875

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))
=(2060.5 / (2060.5 + 7585.2)) / (2273.6 / (2273.6 + 6325))
=0.2136185 / 0.26441514
=0.8079

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)
=(1710 / 7429.7) / (2455.5 / 12646.2)
=0.23015734 / 0.194169
=1.1853

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)
=((14128 + 3586.3) / 44159.6) / ((15450.4 + 4192.1) / 48554.6)
=0.40114267 / 0.40454457
=0.9916

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
=(4738.1 - 4753.3 - 3018) / 44159.6
=-0.0687

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.

Liberty Global has a M-score of -2.85 suggests that the company is unlikely to be a manipulator.


Liberty Global Beneish M-Score Related Terms

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Liberty Global Business Description

Liberty Global logo
Address
161 Hammersmith Road, Griffin House, London, GBR, W6 8BS
Liberty Global is a holding company with interests in cable and telecom companies in the U.K., Netherlands, Belgium, Switzerland, Ireland, and Slovakia. Liberty is the owner of the main cable network in each of these geographies and has pursued a strategy since 2016 to merge or partner with mobile-network-operators to be able to offer converged services. Liberty also owns minority stakes in other media, entertainment, and cloud companies.
Executives
Drew Marisa D director 161 HAMMERSMITH ROAD LONDON X0 XO
Sanchez Daniel E. director C/O DISCOVERY, INC. 8403 COLESVILLE ROAD SILVER SPRING MD 20910
Berkshire Hathaway Inc 10 percent owner 3555 FARNAM STREET OMAHA NE 68131
Buffett Warren E 10 percent owner 3555 FARNAM ST STE 1440 OMAHA NE 68131
Salvato Andrea officer: SVP, CHIEF DEVELOPMENT OFFICER 161 HAMMERSMITH ROAD LONDON X0 W6 8BS
Rodriguez Enrique officer: EVP, Chief Technology Officer 1221 AVENUE OF THE AMERICAS 37TH FLOOR NEW YORK NY 10020
Malone John C director, 10 percent owner 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Waldron Jason officer: SVP & CAO 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Wargo J David director C/O WARGO & CO 712 FIFTH AVENUE 41ST FLOOR NEW YORK NY 10019
Gould Paul A director 711 FIFTH AVENUE 9TH FLOOR NEW YORK NY 10022
Cole John P Jr director 1919 PENNSYLVANIA AVE N.W. STE 200 WASHINGTON DC 20006
Dvorak Bernard G officer: EVP & Co-CFO C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Karsten Diederik officer: EVP, European BB Ops C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Sparkman J C director 201 EAST SANDPOINTE 8TH FLOOR SANTA ANA CA 92707
Curtis Miranda director C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112

Liberty Global Headlines

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