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Verizon Communications Beneish M-Score

: -2.50 (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 -2.5 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

VZ' s Beneish M-Score Range Over the Past 10 Years
Min: -4.01   Med: -2.92   Max: -0.92
Current: -2.5

During the past 13 years, the highest Beneish M-Score of Verizon Communications was -0.92. The lowest was -4.01. And the median was -2.92.


Verizon Communications Beneish M-Score Historical Data

The historical data trend for Verizon Communications'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.

Verizon Communications 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 -1.99 -2.72 -2.70 -2.93 -2.58

Verizon Communications 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 -2.74 -2.69 -2.58 -2.55 -2.50

Competitive Comparison

For the Telecom Services subindustry, Verizon Communications'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.

   

Verizon Communications Beneish M-Score Distribution

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

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



Verizon Communications 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 Verizon Communications 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 * 1.1125+0.528 * 1.0228+0.404 * 1.0078+0.892 * 1.011+0.115 * 1.0441
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9258+4.679 * -0.0395-0.327 * 0.9419
=-2.50

* 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 $23,909 Mil.
Revenue was 33789 + 33554 + 34067 + 32915 = $134,325 Mil.
Gross Profit was 19369 + 19204 + 19071 + 19387 = $77,031 Mil.
Total Current Assets was $37,499 Mil.
Total Assets was $370,147 Mil.
Property, Plant and Equipment(Net PPE) was $128,408 Mil.
Depreciation, Depletion and Amortization(DDA) was $16,569 Mil.
Selling, General, & Admin. Expense(SGA) was $28,601 Mil.
Total Current Liabilities was $49,224 Mil.
Long-Term Debt & Capital Lease Obligation was $158,781 Mil.
Net Income was 5199 + 4580 + 4613 + 6407 = $20,799 Mil.
Non Operating Income was 69 + -937 + -736 + 259 = $-1,345 Mil.
Cash Flow from Operations was 10844 + 6821 + 8377 + 10724 = $36,766 Mil.
Total Receivables was $21,257 Mil.
Revenue was 33764 + 32867 + 34692 + 31543 = $132,866 Mil.
Gross Profit was 19509 + 19345 + 19870 + 19209 = $77,933 Mil.
Total Current Assets was $35,626 Mil.
Total Assets was $349,190 Mil.
Property, Plant and Equipment(Net PPE) was $122,382 Mil.
Depreciation, Depletion and Amortization(DDA) was $16,583 Mil.
Selling, General, & Admin. Expense(SGA) was $30,557 Mil.
Total Current Liabilities was $40,078 Mil.
Long-Term Debt & Capital Lease Obligation was $168,254 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)
=(23909 / 134325) / (21257 / 132866)
=0.17799367 / 0.15998826
=1.1125

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)
=(77933 / 132866) / (77031 / 134325)
=0.58655337 / 0.57346734
=1.0228

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 - (37499 + 128408) / 370147) / (1 - (35626 + 122382) / 349190)
=0.55178078 / 0.54750136
=1.0078

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
=134325 / 132866
=1.011

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))
=(16583 / (16583 + 122382)) / (16569 / (16569 + 128408))
=0.11933221 / 0.11428709
=1.0441

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)
=(28601 / 134325) / (30557 / 132866)
=0.21292388 / 0.22998359
=0.9258

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)
=((158781 + 49224) / 370147) / ((168254 + 40078) / 349190)
=0.56195241 / 0.59661502
=0.9419

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
=(20799 - -1345 - 36766) / 370147
=-0.0395

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.

Verizon Communications has a M-score of -2.50 suggests that the company is unlikely to be a manipulator.


Verizon Communications Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Verizon Communications's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Verizon Communications Business Description

Verizon Communications logo
Address
1095 Avenue of the Americas, New York, NY, USA, 10036
Verizon is now primarily a wireless business (more than 70% of revenue and nearly all operating income). It serves about 91 million postpaid and 4 million prepaid phone customers and connects another 25 million data devices, like tablets, via its nationwide network, making it the largest U.S. wireless carrier. The firm has agreed to acquire Tracfone, a wireless reseller that serves about 20 million prepaid customers in the U.S., from America Movil. Fixed-line telecom operations include local networks (12% of revenue) in the Northeast, which reach about 25 million homes and businesses, and nationwide enterprise services (10%). Verizon Media Group, the online media and advertising firm formed with the acquisitions of AOL and Yahoo, provides the remainder of revenue.
Executives
Brouillette Manon officer: EVP and Group CEO-VZ Consumer 40 AVENUE SPRINGGROVE MONTREAL Z4 H3C 4M8
Hammock Samantha officer: EVP & Chief HR Officer 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Tome Carol B director 55 GLENLAKE PARKWAY, NE ATLANTA GA 30328
Narasimhan Laxman director PEPSICO, INC., 700 ANDERSON HILL ROAD PURCHASE NY 10577
Slater Rodney E director
Bertolini Mark T director AETNA INC. 151 FARMINGTON AVENUE HARTFORD CT 06156
Otis Clarence Jr director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Archambeau Shellye L director 1095 AVENUE OF THE AMERICAS, 8TH FLOOR NEW YORK NY 10036
Austin Roxanne S director 200 N SEPULVEDA BLVD PO BOX 956 MS ES/001/A102 EL SEGUNDO CA 90245
Healey Melanie director VERIZON COMMUNICATIONS INC. 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Weaver Gregory G. director 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Schulman Daniel H director C/O PAYPAL HOLDINGS, INC. 2211 NORTH FIRST STREET SAN JOSE CA 95131
Qureshi Rima officer: EVP & Chief Strategy Officer 2000 PURCHASE STREET PURCHASE NY 10577
Gowrappan Kumara Guru officer: EVP and Group CEO-VZ Media 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036
Dunne Ronan officer: EVP and Group CEO-VZ Consumer 1095 AVENUE OF THE AMERICAS NEW YORK NY 10036

Verizon Communications Headlines

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