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Liberty Latin America Beneish M-Score

: -2.53 (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 -2.53 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:LILA' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94   Med: -2.6   Max: 0.44
Current: -2.53

-2.94
0.44

During the past 8 years, the highest Beneish M-Score of Liberty Latin America was 0.44. The lowest was -2.94. And the median was -2.60.


Liberty Latin America Beneish M-Score Historical Data

The historical data trend for Liberty Latin America'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 Latin America Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only 0.22 -2.65 -2.62 -2.73 -2.70

Liberty Latin America Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
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 -2.94 -2.70 -2.68 -2.53 -2.53

Competitive Comparison

For the Telecom Services subindustry, Liberty Latin America'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 Latin America Beneish M-Score Distribution

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

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



Liberty Latin America 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 Latin America 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 * 0.8225+0.528 * 1.0303+0.404 * 1.1035+0.892 * 1.2677+0.115 * 0.9022
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9699+4.679 * -0.0495-0.327 * 0.8227
=-2.53

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $528 Mil.
Revenue was 1192 + 1168 + 1159.9 + 1097.2 = $4,617 Mil.
Gross Profit was 901 + 892.3 + 879.7 + 831.4 = $3,504 Mil.
Total Current Assets was $2,025 Mil.
Total Assets was $15,997 Mil.
Property, Plant and Equipment(Net PPE) was $4,247 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,007 Mil.
Selling, General, & Admin. Expense(SGA) was $1,071 Mil.
Total Current Liabilities was $1,356 Mil.
Long-Term Debt & Capital Lease Obligation was $7,443 Mil.
Net Income was 78.2 + 4.4 + 87.8 + -28.9 = $142 Mil.
Non Operating Income was 103.1 + -4.5 + 63.4 + -95.4 = $67 Mil.
Cash Flow from Operations was 274.1 + 240.2 + 203.5 + 149.1 = $867 Mil.
Accounts Receivable was $506 Mil.
Revenue was 887.5 + 848.9 + 931 + 974.6 = $3,642 Mil.
Gross Profit was 697.8 + 669.2 + 720.2 + 760.9 = $2,848 Mil.
Total Current Assets was $2,406 Mil.
Total Assets was $14,598 Mil.
Property, Plant and Equipment(Net PPE) was $4,150 Mil.
Depreciation, Depletion and Amortization(DDA) was $867 Mil.
Selling, General, & Admin. Expense(SGA) was $871 Mil.
Total Current Liabilities was $1,585 Mil.
Long-Term Debt & Capital Lease Obligation was $8,175 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(527.5 / 4617.1) / (505.9 / 3642)
=0.1142492 / 0.13890719
=0.8225

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)
=(2848.1 / 3642) / (3504.4 / 4617.1)
=0.78201538 / 0.75900457
=1.0303

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 - (2024.7 + 4246.9) / 15996.6) / (1 - (2405.6 + 4149.8) / 14597.9)
=0.60794169 / 0.55093541
=1.1035

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
=4617.1 / 3642
=1.2677

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))
=(867.2 / (867.2 + 4149.8)) / (1006.5 / (1006.5 + 4246.9))
=0.1728523 / 0.19159021
=0.9022

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)
=(1071.4 / 4617.1) / (871.4 / 3642)
=0.23205042 / 0.23926414
=0.9699

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)
=((7443.1 + 1355.9) / 15996.6) / ((8175.4 + 1585.1) / 14597.9)
=0.55005439 / 0.66862357
=0.8227

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
=(141.5 - 66.6 - 866.9) / 15996.6
=-0.0495

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 Latin America has a M-score of -2.53 suggests that the company is unlikely to be a manipulator.


Liberty Latin America Beneish M-Score Related Terms

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Liberty Latin America Business Description

Liberty Latin America logo
Industry
Traded in Other Exchanges
Address
2 Church Street, Hamilton, BMU, HM 11
Liberty Latin America Ltd is a telecommunications company. It is a provider of video, broadband internet, fixed-line telephony and mobile services to residential and business customers. The company's reportable segments include C&W Caribbean and Networks, C&W Panama, VTR/Cableticaand Liberty Puerto Rico.
Executives
Zinterhofer Eric Louis director C/O SEARCHLIGHT CAPITAL PARTNERS GP, LP 745 FIFTH AVENUE, 27TH FLOOR NEW YORK NY 10151
Nair Balan director, officer: President and CEO 901 EXPLORER BOULEVARD HUNTSVILLE AL 35806
Sanchez Daniel E. director C/O DISCOVERY, INC. 8403 COLESVILLE ROAD SILVER SPRING MD 20910
Khemka Vivek officer: SVP, CT&PO C/O DISH NETWORK CORPORATION 9601 S MERIDIAN BLVD ENGLEWOOD CO 80112
Fries Michael T director, officer: Executive Chairman C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Noyes Christopher J officer: SVP, CHIEF FINANCIAL OFFICER 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Malone John C 10 percent owner 12300 LIBERTY BLVD ENGLEWOOD CO 80112
Gould Paul A director 711 FIFTH AVENUE 9TH FLOOR NEW YORK NY 10022
Bracken Charles H R director C/O UPC SERVICES LTD 12 STANHOPE GATE LONDON ENGLAND X0 W1Y 5LB
Kenigsztein Betzalel officer: SVP, CHIEF OPERATING OFFICER 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Curtis Miranda director C/O LIBERTY GLOBAL, INC. 12300 LIBERTY BOULEVARD ENGLEWOOD CO 80112
Winter John M officer: SVP, CLO AND SECRETARY 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Paddick Brendan J director 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
De Angoitia Alfonso director 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202
Zook Brian D officer: MD, CHIEF ACCOUNTING OFFICER 1550 WEWATTA STREET SUITE 1000 DENVER CO 80202

Liberty Latin America Headlines

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