BCE (BCE) Beneish M-Score : -2.84 (As of Apr. 26, 2024)

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What is BCE 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 -2.84 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

BCE' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84 Med: -2.78 Max: -2.39
Current: -2.84

During the past 13 years, the highest Beneish M-Score of BCE was -2.39. The lowest was -2.84. And the median was -2.78.

BCE Beneish M-Score Historical Data

The historical data trend for BCE'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.

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BCE Beneish M-Score Chart

BCE Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.82

-2.81

-2.77

-2.78

-2.84

BCE Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.78	-2.74	-2.75	-2.78	-2.84

Competitive Comparison of BCE's Beneish M-Score

For the Telecom Services subindustry, BCE'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.

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

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

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

BCE 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 BCE for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9983

0.528 * 1.0087

0.404 * 0.9667

0.892 * 0.9921

0.115 * 1.0332

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9765

4.679 * -0.067138

0.327 * 1.0617

-2.82

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $3,335 Mil.
Revenue was 4824.836 + 4493.386 + 4565.708 + 4424.468 = $18,308 Mil.
Gross Profit was 3114.937 + 3132.067 + 3183.802 + 2996.419 = $12,427 Mil.
Total Current Assets was $5,887 Mil.
Total Assets was $53,623 Mil.
Property, Plant and Equipment(Net PPE) was $22,624 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,649 Mil.
Selling, General, & Admin. Expense(SGA) was $3,269 Mil.
Total Current Liabilities was $9,024 Mil.
Long-Term Debt & Capital Lease Obligation was $23,207 Mil.
Net Income was 320.513 + 507.723 + 282.252 + 563.473 = $1,674 Mil.
Non Operating Income was -240.012 + -113.813 + -309.348 + 27.772 = $-635 Mil.
Cash Flow from Operations was 1768.784 + 1449.265 + 1780.069 + 911.35 = $5,909 Mil.

Total Receivables was $3,367 Mil.
Revenue was 4739.787 + 4516.081 + 4577.476 + 4620.853 = $18,454 Mil.
Gross Profit was 3004.785 + 3120.174 + 3254.452 + 3255.924 = $12,635 Mil.
Total Current Assets was $4,775 Mil.
Total Assets was $51,033 Mil.
Property, Plant and Equipment(Net PPE) was $21,536 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,608 Mil.
Selling, General, & Admin. Expense(SGA) was $3,374 Mil.
Total Current Liabilities was $8,442 Mil.
Long-Term Debt & Capital Lease Obligation was $20,451 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)
	=	(3334.824 / 18308.398)	/	(3366.949 / 18454.197)
	=	0.182147	/	0.182449
	=	0.9983

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)
	=	(12635.335 / 18454.197)	/	(12427.225 / 18308.398)
	=	0.684686	/	0.678772
	=	1.0087

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 - (5887.001 + 22623.733) / 53622.54)	/	(1 - (4775.12 + 21535.517) / 51033.493)
	=	0.468307	/	0.484444
	=	0.9667

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
	=	18308.398	/	18454.197
	=	0.9921

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))
	=	(3608.401 / (3608.401 + 21535.517))	/	(3649.484 / (3649.484 + 22623.733))
	=	0.14351	/	0.138905
	=	1.0332

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)
	=	(3269.118 / 18308.398)	/	(3374.472 / 18454.197)
	=	0.178558	/	0.182857
	=	0.9765

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)
	=	((23207.364 + 9024.299) / 53622.54)	/	((20451.233 + 8442.4) / 51033.493)
	=	0.601084	/	0.56617
	=	1.0617

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
	=	(1673.961 - -635.401	-	5909.468)	/	53622.54
	=	-0.067138

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.

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

BCE Beneish M-Score Related Terms

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BCE (BCE) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » BCE Inc (NYSE:BCE) » Definitions » Beneish M-Score

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Address

1 Carrefour Alexander Graham Bell, Tour A-7, Verdun, QC, CAN, H3E 3B3

Website

https://www.bce.ca

BCE provides wireless, broadband, television, and landline phone services in Canada. It is one of the big three national wireless carriers, with its roughly 10 million customers constituting about 30% of the market. It is also the ILEC (incumbent local exchange carrier—the legacy telephone provider) throughout much of the eastern half of Canada, including in the most populous Canadian provinces: Ontario and Quebec. Additionally, BCE has a media segment, which holds television, radio, and digital media assets. BCE licenses the Canadian rights to movie channels including HBO, Showtime, and Starz. In 2022, the wireline segment made up 52% of total EBITDA, while wireless was 31% and media provided the remainder.