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Vodafone Group Beneish M-Score

: -3.08 (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 -3.08 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NAS:VOD' s Beneish M-Score Range Over the Past 10 Years
Min: -5.3   Med: -2.48   Max: 0.53
Current: -3.08

-5.3
0.53

During the past 13 years, the highest Beneish M-Score of Vodafone Group was 0.53. The lowest was -5.30. And the median was -2.48.


Vodafone Group Beneish M-Score Historical Data

The historical data trend for Vodafone Group'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.

Vodafone Group Annual Data
Trend Mar12 Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.18 -2.84 -3.30 -3.03 -3.08

Vodafone Group Semi-Annual Data
Mar12 Sep12 Mar13 Sep13 Mar14 Sep14 Mar15 Sep15 Mar16 Sep16 Mar17 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20 Mar21 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 - -3.03 - -3.08 -

Competitive Comparison

For the Telecom Services subindustry, Vodafone Group'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.

   

Vodafone Group Beneish M-Score Distribution

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

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



Vodafone Group 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 Vodafone Group 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 * 0.9536+0.528 * 1.0145+0.404 * 0.9744+0.892 * 1.0495+0.115 * 1.0247
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9464+4.679 * -0.1103-0.327 * 0.9905
=-2.98

* 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 (Mar21) TTM:Last Year (Mar20) TTM:
Accounts Receivable was $4,870 Mil.
Revenue was $52,154 Mil.
Gross Profit was $16,337 Mil.
Total Current Assets was $33,655 Mil.
Total Assets was $184,599 Mil.
Property, Plant and Equipment(Net PPE) was $49,099 Mil.
Depreciation, Depletion and Amortization(DDA) was $16,787 Mil.
Selling, General, & Admin. Expense(SGA) was $10,562 Mil.
Total Current Liabilities was $34,180 Mil.
Long-Term Debt & Capital Lease Obligation was $70,562 Mil.
Net Income was $133 Mil.
Gross Profit was $0 Mil.
Cash Flow from Operations was $20,494 Mil.
Accounts Receivable was $4,866 Mil.
Revenue was $49,695 Mil.
Gross Profit was $15,792 Mil.
Total Current Assets was $36,281 Mil.
Total Assets was $185,821 Mil.
Property, Plant and Equipment(Net PPE) was $44,324 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,662 Mil.
Selling, General, & Admin. Expense(SGA) was $10,634 Mil.
Total Current Liabilities was $36,890 Mil.
Long-Term Debt & Capital Lease Obligation was $69,557 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)
=(4870.2380952381 / 52153.571428571) / (4866.2983425414 / 49695.027624309)
=0.09338264 / 0.09792324
=0.9536

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)
=(15792.26519337 / 49695.027624309) / (16336.904761905 / 52153.571428571)
=0.31778361 / 0.31324614
=1.0145

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 - (33654.761904762 + 49098.80952381) / 184598.80952381) / (1 - (36280.662983425 + 44323.756906077) / 185820.99447514)
=0.55171124 / 0.56622544
=0.9744

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
=52153.571428571 / 49695.027624309
=1.0495

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))
=(15661.878453039 / (15661.878453039 + 44323.756906077)) / (16786.904761905 / (16786.904761905 + 49098.80952381))
=0.26109382 / 0.25478823
=1.0247

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)
=(10561.904761905 / 52153.571428571) / (10634.254143646 / 49695.027624309)
=0.20251546 / 0.21399031
=0.9464

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)
=((70561.904761905 + 34179.761904762) / 184598.80952381) / ((69556.906077348 + 36889.502762431) / 185820.99447514)
=0.56740164 / 0.57284382
=0.9905

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
=(133.33333333333 - 0 - 20494.047619048) / 184598.80952381
=-0.1103

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.

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


Vodafone Group Beneish M-Score Related Terms

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Vodafone Group Business Description

Vodafone Group logo
Address
Vodafone House, The Connection, Newbury, Berkshire, GBR, RG14 2FN
With about 270 million wireless customers, Vodafone is one of the largest wireless carriers in the world. More recently, the firm has acquired cable operations and gained access to additional fixed-line networks, either building its own or gaining wholesale access. Vodafone is increasingly pushing converged services of wireless and fixed-line telephone services. Europe accounts for about three fourths of reported service revenue, with major operations in Germany (about 30% of total service revenue), the U.K. (13%), Italy (12%), and Spain (10%). Outside of Europe, 65%-owned Vodacom, which serves sub-Saharan Africa, is Vodafone's largest controlled subsidiary (12% of total service revenue). The firm also owns stakes in operations in India, Australia, and the Netherlands.

Vodafone Group Headlines

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