Qurate Retail (WBO:QRTE) Beneish M-Score : -2.83 (As of Dec. 12, 2024)

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What is Qurate Retail 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 -2.83 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

WBO:QRTE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.24 Med: -2.69 Max: -1.91
Current: -2.83

During the past 13 years, the highest Beneish M-Score of Qurate Retail was -1.91. The lowest was -3.24. And the median was -2.69.

Qurate Retail Beneish M-Score Historical Data

The historical data trend for Qurate Retail'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.

Qurate Retail Beneish M-Score Chart

Qurate Retail Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.41

-2.84

-2.65

-3.01

-2.99

Qurate Retail Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-2.89	-2.99	-3.01	-2.84	-2.83

Competitive Comparison of Qurate Retail's Beneish M-Score

For the Internet Retail subindustry, Qurate Retail'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.

Qurate Retail's Beneish M-Score Distribution in the Retail - Cyclical Industry

For the Retail - Cyclical industry and Consumer Cyclical sector, Qurate Retail's Beneish M-Score distribution charts can be found below:

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

Qurate Retail 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 Qurate Retail 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 * 0.9825

0.528 * 0.9125

0.404 * 0.9932

0.892 * 0.8882

0.115 * 1.067

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9939

4.679 * -0.050163

0.327 * 1.0098

-2.87

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was €796 Mil.
Revenue was 2111.944 + 2236.103 + 2154.64 + 2882.131 = €9,385 Mil.
Gross Profit was 745.127 + 812.875 + 764.52 + 971.103 = €3,294 Mil.
Total Current Assets was €2,909 Mil.
Total Assets was €9,706 Mil.
Property, Plant and Equipment(Net PPE) was €1,007 Mil.
Depreciation, Depletion and Amortization(DDA) was €356 Mil.
Selling, General, & Admin. Expense(SGA) was €1,596 Mil.
Total Current Liabilities was €2,387 Mil.
Long-Term Debt & Capital Lease Obligation was €4,324 Mil.
Net Income was -20.723 + 18.58 + -0.92 + -250.341 = €-253 Mil.
Non Operating Income was -31.535 + -15.793 + 3.68 + -303.527 = €-347 Mil.
Cash Flow from Operations was 18.02 + 248.043 + 23.92 + 290.689 = €581 Mil.

Total Receivables was €912 Mil.
Revenue was 2322.823 + 2445.027 + 2469.496 + 3328.544 = €10,566 Mil.
Gross Profit was 820.812 + 844.545 + 779.89 + 938.336 = €3,384 Mil.
Total Current Assets was €3,265 Mil.
Total Assets was €10,716 Mil.
Property, Plant and Equipment(Net PPE) was €1,015 Mil.
Depreciation, Depletion and Amortization(DDA) was €392 Mil.
Selling, General, & Admin. Expense(SGA) was €1,808 Mil.
Total Current Liabilities was €2,301 Mil.
Long-Term Debt & Capital Lease Obligation was €5,035 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)
	=	(795.583 / 9384.818)	/	(911.701 / 10565.89)
	=	0.084773	/	0.086287
	=	0.9825

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)
	=	(3383.583 / 10565.89)	/	(3293.625 / 9384.818)
	=	0.320236	/	0.350952
	=	0.9125

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 - (2909.329 + 1007.318) / 9706.473)	/	(1 - (3265.445 + 1014.771) / 10716.469)
	=	0.596491	/	0.600595
	=	0.9932

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
	=	9384.818	/	10565.89
	=	0.8882

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))
	=	(391.617 / (391.617 + 1014.771))	/	(355.725 / (355.725 + 1007.318))
	=	0.278456	/	0.260979
	=	1.067

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)
	=	(1596.257 / 9384.818)	/	(1808.225 / 10565.89)
	=	0.170089	/	0.171138
	=	0.9939

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)
	=	((4323.899 + 2386.749) / 9706.473)	/	((5035.438 + 2301.272) / 10716.469)
	=	0.691358	/	0.68462
	=	1.0098

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
	=	(-253.404 - -347.175	-	580.672)	/	9706.473
	=	-0.050163

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.

Qurate Retail has a M-score of -2.87 suggests that the company is unlikely to be a manipulator.

Qurate Retail Beneish M-Score Related Terms

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Qurate Retail Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Retail - Cyclical » Qurate Retail Inc (WBO:QRTE) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

QRTEP.PFD:USA QRTEB:USA QRTEA:USA 0A4G:UK LB3A:Germany

Address

12300 Liberty Boulevard, Englewood, CO, USA, 80112

Website

https://www.qurateretail.com

Qurate Retail Inc, through its subsidiaries, is engaged in the video and online commerce industries. Its segments include QxH, which includes QVC U.S. and HSN market and sell a wide variety of consumer products in the United States, using their televised shopping programs and via the Internet through their websites and mobile applications; QVC International segment markets and sells a wide variety of consumer products in several foreign countries, using its televised shopping programs and via the Internet through its international websites and mobile applications; and Zulily markets and sells a wide variety of consumer products in the United States and several foreign countries. Geographically, the company operates in U.S, which generates key revenue, Japan, Germany and other regions.

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