Telenet Group Holding NV (Telenet Group Holding NV) Beneish M-Score : -2.88 (As of May. 12, 2024)

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What is Telenet Group Holding NV 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 -2.88 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

TLGHY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46 Med: -3.07 Max: -2.15
Current: -2.88

During the past 13 years, the highest Beneish M-Score of Telenet Group Holding NV was -2.15. The lowest was -3.46. And the median was -3.07.

Telenet Group Holding NV Beneish M-Score Historical Data

The historical data trend for Telenet Group Holding NV'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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Telenet Group Holding NV Beneish M-Score Chart

Telenet Group Holding NV Annual Data

Trend

Dec13

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Beneish M-Score

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-3.33

-3.21

-3.15

-3.12

-2.38

Telenet Group Holding NV Quarterly Data
	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23
Beneish M-Score	Get a 7-Day Free Trial															-2.58	-2.46	-2.38	-2.49	-2.88

Competitive Comparison of Telenet Group Holding NV's Beneish M-Score

For the Telecom Services subindustry, Telenet Group Holding NV'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.

Telenet Group Holding NV's Beneish M-Score Distribution in the Telecommunication Services Industry

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

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

Telenet Group Holding NV 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 Telenet Group Holding NV 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 * 1.1626

0.528 * 1.0564

0.404 * 0.9876

0.892 * 1.0081

0.115 * 0.9801

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0064

4.679 * -0.114185

0.327 * 0.9798

-2.83

This Year (Jun23) TTM:

Last Year (Jun22) TTM:

Total Receivables was $212 Mil.
Revenue was 762.839 + 752.463 + 755.191 + 653.96 = $2,924 Mil.
Gross Profit was 364.897 + 322.591 + 360.593 + 332.871 = $1,381 Mil.
Total Current Assets was $1,766 Mil.
Total Assets was $8,037 Mil.
Property, Plant and Equipment(Net PPE) was $2,383 Mil.
Depreciation, Depletion and Amortization(DDA) was $856 Mil.
Selling, General, & Admin. Expense(SGA) was $812 Mil.
Total Current Liabilities was $1,856 Mil.
Long-Term Debt & Capital Lease Obligation was $6,548 Mil.
Net Income was -30.444 + 17.987 + 1.377 + 200.594 = $190 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 311.701 + 200 + 326.165 + 269.406 = $1,107 Mil.

Total Receivables was $181 Mil.
Revenue was 683.721 + 710.132 + 753.559 + 753.647 = $2,901 Mil.
Gross Profit was 342.706 + 346.476 + 374.35 + 383.647 = $1,447 Mil.
Total Current Assets was $1,331 Mil.
Total Assets was $7,219 Mil.
Property, Plant and Equipment(Net PPE) was $2,351 Mil.
Depreciation, Depletion and Amortization(DDA) was $822 Mil.
Selling, General, & Admin. Expense(SGA) was $800 Mil.
Total Current Liabilities was $1,557 Mil.
Long-Term Debt & Capital Lease Obligation was $6,147 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)
	=	(211.593 / 2924.453)	/	(180.55 / 2901.059)
	=	0.072353	/	0.062236
	=	1.1626

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)
	=	(1447.179 / 2901.059)	/	(1380.952 / 2924.453)
	=	0.498845	/	0.472209
	=	1.0564

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 - (1765.98 + 2382.665) / 8037.486)	/	(1 - (1331.184 + 2350.951) / 7218.922)
	=	0.483838	/	0.489933
	=	0.9876

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
	=	2924.453	/	2901.059
	=	1.0081

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))
	=	(822.18 / (822.18 + 2350.951))	/	(856.32 / (856.32 + 2382.665))
	=	0.259107	/	0.264379
	=	0.9801

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)
	=	(811.809 / 2924.453)	/	(800.206 / 2901.059)
	=	0.277593	/	0.275832
	=	1.0064

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)
	=	((6547.996 + 1855.796) / 8037.486)	/	((6146.512 + 1557.082) / 7218.922)
	=	1.045575	/	1.067139
	=	0.9798

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
	=	(189.514 - 0	-	1107.272)	/	8037.486
	=	-0.114185

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.

Telenet Group Holding NV has a M-score of -2.83 suggests that the company is unlikely to be a manipulator.

Telenet Group Holding NV Beneish M-Score Related Terms

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Telenet Group Holding NV (Telenet Group Holding NV) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Telecommunication Services » Telenet Group Holding NV (OTCPK:TLGHY) » Definitions » Beneish M-Score

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Traded in Other Exchanges

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Address

Liersesteenweg 4, Antwerpen, Mechelen, BEL, 2800

Website

http://www.telenet.be

Telenet Group Holding NV is a Belgian triple-play telecommunications company. Telenet generates revenue from the provision of broadband services, fixed services, mobile services as well as pay-TV services. Of the subscriber base, the majority receive all three solutions from the company. However, from a product revenue perspective, the company derives the majority of overall revenue from video and broadband services. Both video and Internet services are delivered via the company's owned hybrid fiber-coaxial infrastructure. Telenet operates in both Belgium and Luxembourg.