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Charter Communications (Charter Communications) Beneish M-Score

: -2.79 (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 -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

CHTR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.85   Med: -2.72   Max: 0.04
Current: -2.79

During the past 13 years, the highest Beneish M-Score of Charter Communications was 0.04. The lowest was -2.85. And the median was -2.72.


Charter Communications Beneish M-Score Historical Data

The historical data trend for Charter 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.

Charter Communications Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.57 -2.74 -2.85 -2.83 -2.79

Charter Communications 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 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 -2.83 -2.80 -2.85 -3.01 -2.79

Competitive Comparison

For the Telecom Services subindustry, Charter 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.


Charter Communications Beneish M-Score Distribution

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

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



Charter 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 Charter 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 * 1.0042+0.528 * 1.0025+0.404 * 0.9732+0.892 * 1.0108+0.115 * 1.0984
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1131+4.679 * -0.065411-0.327 * 0.9894
=-2.79

* 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 (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $2,965 Mil.
Revenue was 13711 + 13584 + 13659 + 13653 = $54,607 Mil.
Gross Profit was 9074 + 5285 + 6249 + 6088 = $26,696 Mil.
Total Current Assets was $4,132 Mil.
Total Assets was $147,193 Mil.
Property, Plant and Equipment(Net PPE) was $39,520 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,696 Mil.
Selling, General, & Admin. Expense(SGA) was $5,710 Mil.
Total Current Liabilities was $13,214 Mil.
Long-Term Debt & Capital Lease Obligation was $95,777 Mil.
Net Income was 1058 + 1255 + 1223 + 1021 = $4,557 Mil.
Non Operating Income was -58 + -46 + -28 + -116 = $-248 Mil.
Cash Flow from Operations was 3855 + 3944 + 3311 + 3323 = $14,433 Mil.
Total Receivables was $2,921 Mil.
Revenue was 13674 + 13550 + 13598 + 13200 = $54,022 Mil.
Gross Profit was 8957 + 5303 + 6269 + 5946 = $26,475 Mil.
Total Current Assets was $4,017 Mil.
Total Assets was $144,523 Mil.
Property, Plant and Equipment(Net PPE) was $36,039 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,903 Mil.
Selling, General, & Admin. Expense(SGA) was $5,075 Mil.
Total Current Liabilities was $12,065 Mil.
Long-Term Debt & Capital Lease Obligation was $96,093 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)
=(2965 / 54607) / (2921 / 54022)
=0.054297 / 0.054071
=1.0042

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)
=(26475 / 54022) / (26696 / 54607)
=0.490078 / 0.488875
=1.0025

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 - (4132 + 39520) / 147193) / (1 - (4017 + 36039) / 144523)
=0.703437 / 0.72284
=0.9732

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
=54607 / 54022
=1.0108

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))
=(8903 / (8903 + 36039)) / (8696 / (8696 + 39520))
=0.1981 / 0.180355
=1.0984

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)
=(5710 / 54607) / (5075 / 54022)
=0.104565 / 0.093943
=1.1131

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)
=((95777 + 13214) / 147193) / ((96093 + 12065) / 144523)
=0.740463 / 0.748379
=0.9894

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
=(4557 - -248 - 14433) / 147193
=-0.065411

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.

Charter Communications has a M-score of -2.79 suggests that the company is unlikely to be a manipulator.


Charter Communications Beneish M-Score Related Terms

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Charter Communications (Charter Communications) Business Description

Address
400 Washington Boulevard, Stamford, CT, USA, 06902
Charter is the product of the 2016 merger of three cable companies, each with a decades-long history in the business: Legacy Charter, Time Warner Cable, and Bright House Networks. The firm now holds networks capable of providing television, internet access, and phone services to roughly 56 million U.S. homes and businesses, around 40% of the country. Across this footprint, Charter serves 30 million residential and 2 million commercial customer accounts under the Spectrum brand, making it the second-largest U.S. cable company behind Comcast. The firm also owns, in whole or in part, sports and news networks, including Spectrum SportsNet (long-term local rights to Los Angeles Lakers games), SportsNet LA (Los Angeles Dodgers), SportsNet New York (New York Mets), and Spectrum News NY1.
Executives
Thomas Rutledge director, officer: President and CEO 400 WASHINGTON BLVD., STAMFORD CT 06902
Jamal H Haughton officer: EVP/Gen Counsel/Corp Secretary TWO PENNSYLVANIA PLAZA, NEW YORK NY 10121
Gregory B Maffei director 12300 LIBERTY BLVD, ENGLEWOOD CO 80112
Craig A Jacobson director C/O EXPEDIA, INC., 333 108TH AVENUE NE, BELLEVUE WA 98004
Richard Adam Ray officer: EVP, Chief Commercial Officer 400 WASHINGTON BLVD, STAMFORD CT 06902
Steven A Miron director DISCOVERY COMMUNICATIONS, INC., 1 DISCOVERY PLACE, SILVER SPRING MD 20910
Eric Louis Zinterhofer director C/O SEARCHLIGHT CAPITAL PARTNERS GP, LP, 745 FIFTH AVENUE, 27TH FLOOR, NEW YORK NY 10151
Jonathan Hargis officer: EVP/Chief Marketing Officer 400 WASHINGTON BLVD., STAMFORD CT 06902
Jessica M Fischer officer: Chief Financial Officer 400 WASHINGTON BLVD., STAMFORD CT 06902
John Bickham officer: EVP/Chief Operating Officer 12405 POWERSCOURT DRIVE, ST. LOUIS MO 63131
Richard R Dykhouse officer: SVP/Gen Counsel/Corp Secretary 12405 POWERSCOURT DRIVE, ST. LOUIS MO 63131
David C Merritt director CHARTER COMMUNICATIONS INC, 12405 POWERSCOURT DRIVE, ST LOUIS MO 63131
David Ellen officer: Senior Executive VicePresident 1111 STEWART AVENUE, BETHPAGE NY 11714
Balan Nair director 901 EXPLORER BOULEVARD, HUNTSVILLE AL 35806
Christopher L Winfrey officer: EVP/Chief Financial Officer CHARTER COMMUNICATIONS, INC., 12405 POWERSCOURT DRIVE, ST. LOUIS MO 63131