Rogers Communications (Rogers Communications) Beneish M-Score : -2.16 (As of Apr. 27, 2024)

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What is Rogers Communications 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 -2.16 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

RCI' s Beneish M-Score Range Over the Past 10 Years
Min: -2.84 Med: -2.69 Max: -2.16
Current: -2.16

During the past 13 years, the highest Beneish M-Score of Rogers Communications was -2.16. The lowest was -2.84. And the median was -2.69.

Rogers Communications Beneish M-Score Historical Data

The historical data trend for Rogers 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.

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Rogers Communications Beneish M-Score Chart

Rogers Communications Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.69

-2.84

-2.60

-2.69

-2.16

Rogers Communications Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.42	-2.09	-2.18	-2.16	-

Competitive Comparison of Rogers Communications's Beneish M-Score

For the Telecom Services subindustry, Rogers 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.

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

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

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

Rogers 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 Rogers Communications 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 * 0.9131

0.528 * 0.9284

0.404 * 1.4484

0.892 * 1.296

0.115 * 0.8903

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0

4.679 * -0.06068

0.327 * 0.9958

-2.28

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was $3,679 Mil.
Revenue was 3620.715 + 3976.595 + 3763.21 + 3797.983 = $15,159 Mil.
Gross Profit was 1635.638 + 1735.987 + 1781.834 + 1648.352 = $6,802 Mil.
Total Current Assets was $5,620 Mil.
Total Assets was $51,283 Mil.
Property, Plant and Equipment(Net PPE) was $18,122 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,502 Mil.
Selling, General, & Admin. Expense(SGA) was $0 Mil.
Total Current Liabilities was $7,335 Mil.
Long-Term Debt & Capital Lease Obligation was $30,364 Mil.
Net Income was 189.125 + 244.484 + -73.165 + 82.041 = $442 Mil.
Non Operating Income was -118.942 + -38.014 + -477.422 + -237.844 = $-872 Mil.
Cash Flow from Operations was 871.749 + 1027.877 + 1296.283 + 1230.619 = $4,427 Mil.

Total Receivables was $3,109 Mil.
Revenue was 2802.748 + 3066.618 + 2806.057 + 3020.931 = $11,696 Mil.
Gross Profit was 1206.607 + 1235.922 + 1186.746 + 1243.361 = $4,873 Mil.
Total Current Assets was $14,157 Mil.
Total Assets was $41,021 Mil.
Property, Plant and Equipment(Net PPE) was $11,655 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,964 Mil.
Selling, General, & Admin. Expense(SGA) was $478 Mil.
Total Current Liabilities was $7,416 Mil.
Long-Term Debt & Capital Lease Obligation was $22,868 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)
	=	(3679.078 / 15158.503)	/	(3108.967 / 11696.354)
	=	0.242707	/	0.265807
	=	0.9131

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)
	=	(4872.636 / 11696.354)	/	(6801.811 / 15158.503)
	=	0.416594	/	0.448713
	=	0.9284

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 - (5619.829 + 18122.045) / 51282.506)	/	(1 - (14156.983 + 11654.608) / 41020.975)
	=	0.537038	/	0.370771
	=	1.4484

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
	=	15158.503	/	11696.354
	=	1.296

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))
	=	(1963.554 / (1963.554 + 11654.608))	/	(3501.997 / (3501.997 + 18122.045))
	=	0.144186	/	0.161949
	=	0.8903

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)
	=	(0 / 15158.503)	/	(477.976 / 11696.354)
	=	0	/	0.040865
	=	0

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)
	=	((30364.214 + 7334.515) / 51282.506)	/	((22867.792 + 7415.771) / 41020.975)
	=	0.735119	/	0.738246
	=	0.9958

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
	=	(442.485 - -872.222	-	4426.528)	/	51282.506
	=	-0.06068

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.

Rogers Communications has a M-score of -2.28 suggests that the company is unlikely to be a manipulator.

Rogers Communications Beneish M-Score Related Terms

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Rogers Communications (Rogers Communications) Business Description

Industry

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

Comparable Companies

Traded in Other Exchanges

RCIAF:USA RCI.B:Canada RCI.A:Canada

Address

333 Bloor Street East, 10th Floor, Toronto, ON, CAN, M4W 1G9

Website

https://www.rogers.com

Rogers Communications is the largest wireless service provider in Canada, with its more than 10 million subscribers equating to one third of the total Canadian market. Its wireless business accounted for more than half of total revenue and has increasingly been providing a bigger portion of total company sales over the last several years. Rogers' cable segment, which provides about 40% of total revenue after acquiring Shaw, offers home internet, television, and landline phone service to consumers and businesses. Remaining sales come from Rogers' media unit, which owns and operates various television and radio stations and the Toronto Blue Jays. Rogers' significant exposure to sports also includes ownership stakes in the Toronto Maple Leafs, Raptors, FC, and Argonauts.