West Beneish M-Score Historical Data
The historical data trend for West'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.
West Beneish M-Score Chart
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West Annual Data
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Trend |
Dec07 |
Dec08 |
Dec09 |
Dec10 |
Dec11 |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
| Beneish M-Score |
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-2.67 |
-2.95 |
-2.73 |
-2.65 |
-2.75 |
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West Quarterly Data
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Sep12 |
Dec12 |
Mar13 |
Jun13 |
Sep13 |
Dec13 |
Mar14 |
Jun14 |
Sep14 |
Dec14 |
Mar15 |
Jun15 |
Sep15 |
Dec15 |
Mar16 |
Jun16 |
Sep16 |
Dec16 |
Mar17 |
Jun17 |
| Beneish M-Score |
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-2.75 |
-2.77 |
-2.75 |
-2.71 |
-2.69 |
Competitive Comparison of West's Beneish M-Score
For the Telecom Services subindustry, West'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.
West's Beneish M-Score Distribution in the Telecommunication Services Industry
For the Telecommunication Services industry and Communication Services sector, West's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where West's Beneish M-Score falls into.
West 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 West 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 * 1.0246 | + | 0.528 * 1.0056 | + | 0.404 * 1.0103 | + | 0.892 * 0.9955 | + | 0.115 * 0.9966 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0338 | + | 4.679 * -0.051358 | - | 0.327 * 0.9547 |
| = | -2.69 |
* 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 (Jun17) TTM: | Last Year (Jun16) TTM: |
Total Receivables was $400 Mil.
Revenue was 574.393 + 572.542 + 567.38 + 571.407 = $2,286 Mil.
Gross Profit was 329.052 + 330.1 + 323.847 + 323.59 = $1,307 Mil.
Total Current Assets was $733 Mil.
Total Assets was $3,481 Mil.
Property, Plant and Equipment(Net PPE) was $327 Mil.
Depreciation, Depletion and Amortization(DDA) was $190 Mil.
Selling, General, & Admin. Expense(SGA) was $884 Mil.
Total Current Liabilities was $484 Mil.
Long-Term Debt & Capital Lease Obligation was $3,065 Mil.
Net Income was 44.764 + 54.096 + 68.32 + 47.535 = $215 Mil.
Non Operating Income was 1.045 + 2.67 + -0.273 + -0.789 = $3 Mil.
Cash Flow from Operations was 107.273 + 52.773 + 126.673 + 104.117 = $391 Mil.
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Total Receivables was $392 Mil.
Revenue was 582.397 + 570.779 + 568.43 + 574.448 = $2,296 Mil.
Gross Profit was 332.971 + 329.767 + 329.041 + 328.111 = $1,320 Mil.
Total Current Assets was $766 Mil.
Total Assets was $3,547 Mil.
Property, Plant and Equipment(Net PPE) was $339 Mil.
Depreciation, Depletion and Amortization(DDA) was $196 Mil.
Selling, General, & Admin. Expense(SGA) was $859 Mil.
Total Current Liabilities was $497 Mil.
Long-Term Debt & Capital Lease Obligation was $3,291 Mil.
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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) |
| = | (399.998 / 2285.722) | / | (392.164 / 2296.054) |
| = | 0.174999 | / | 0.170799 |
| | = | 1.0246 |
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) |
| = | (1319.89 / 2296.054) | / | (1306.589 / 2285.722) |
| = | 0.574851 | / | 0.571631 |
| | = | 1.0056 |
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 - (732.931 + 326.673) / 3480.945) | / | (1 - (766.213 + 338.626) / 3546.601) |
| = | 0.695599 | / | 0.688479 |
| | = | 1.0103 |
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 |
| = | 2285.722 | / | 2296.054 |
| | = | 0.9955 |
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)) |
| = | (196.003 / (196.003 + 338.626)) | / | (190.096 / (190.096 + 326.673)) |
| = | 0.366615 | / | 0.367855 |
| | = | 0.9966 |
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) |
| = | (883.575 / 2285.722) | / | (858.541 / 2296.054) |
| = | 0.386563 | / | 0.37392 |
| | = | 1.0338 |
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) |
| = | ((3064.85 + 484.44) / 3480.945) | / | ((3290.94 + 496.695) / 3546.601) |
| = | 1.019634 | / | 1.067962 |
| | = | 0.9547 |
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 |
| = | (214.715 - 2.653 | - | 390.836) | / | 3480.945 |
| | = | -0.051358 |
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.
West has a M-score of -2.69 suggests that the company is unlikely to be a manipulator.
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