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AT&T (T) Beneish M-Score : -2.78 (As of Oct. 31, 2024)


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What is AT&T 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 -2.78 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for AT&T's Beneish M-Score or its related term are showing as below:

T' s Beneish M-Score Range Over the Past 10 Years
Min: -3.26   Med: -2.85   Max: -1.83
Current: -2.78

During the past 13 years, the highest Beneish M-Score of AT&T was -1.83. The lowest was -3.26. And the median was -2.85.


AT&T Beneish M-Score Historical Data

The historical data trend for AT&T'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.

AT&T Beneish M-Score Chart

AT&T 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 -2.89 -2.85 -3.26 -2.70 -2.87

AT&T 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 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 -3.01 -2.87 -2.84 -2.73 -2.78

Competitive Comparison of AT&T's Beneish M-Score

For the Telecom Services subindustry, AT&T'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.


AT&T's Beneish M-Score Distribution in the Telecommunication Services Industry

For the Telecommunication Services industry and Communication Services sector, AT&T's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where AT&T's Beneish M-Score falls into.



AT&T 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 AT&T 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 * 1.0093+0.528 * 0.9867+0.404 * 1.0031+0.892 * 1.0026+0.115 * 0.935
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9837+4.679 * -0.065283-0.327 * 0.9711
=-2.78

* 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 (Sep24) TTM:Last Year (Sep23) TTM:
Total Receivables was $9,068 Mil.
Revenue was 30213 + 29797 + 30028 + 32022 = $122,060 Mil.
Gross Profit was 18583 + 18355 + 18074 + 18111 = $73,123 Mil.
Total Current Assets was $29,799 Mil.
Total Assets was $393,719 Mil.
Property, Plant and Equipment(Net PPE) was $148,743 Mil.
Depreciation, Depletion and Amortization(DDA) was $19,972 Mil.
Selling, General, & Admin. Expense(SGA) was $28,507 Mil.
Total Current Liabilities was $40,658 Mil.
Long-Term Debt & Capital Lease Obligation was $143,706 Mil.
Net Income was -174 + 3597 + 3445 + 2188 = $9,056 Mil.
Non Operating Income was -3433 + 550 + 587 + -1198 = $-3,494 Mil.
Cash Flow from Operations was 10235 + 9093 + 7547 + 11378 = $38,253 Mil.
Total Receivables was $8,962 Mil.
Revenue was 30350 + 29917 + 30139 + 31343 = $121,749 Mil.
Gross Profit was 18296 + 18090 + 17808 + 17772 = $71,966 Mil.
Total Current Assets was $35,620 Mil.
Total Assets was $406,698 Mil.
Property, Plant and Equipment(Net PPE) was $149,497 Mil.
Depreciation, Depletion and Amortization(DDA) was $18,606 Mil.
Selling, General, & Admin. Expense(SGA) was $28,905 Mil.
Total Current Liabilities was $51,684 Mil.
Long-Term Debt & Capital Lease Obligation was $144,431 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)
=(9068 / 122060) / (8962 / 121749)
=0.074291 / 0.07361
=1.0093

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)
=(71966 / 121749) / (73123 / 122060)
=0.591101 / 0.599074
=0.9867

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 - (29799 + 148743) / 393719) / (1 - (35620 + 149497) / 406698)
=0.546524 / 0.544829
=1.0031

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
=122060 / 121749
=1.0026

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))
=(18606 / (18606 + 149497)) / (19972 / (19972 + 148743))
=0.110682 / 0.118377
=0.935

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)
=(28507 / 122060) / (28905 / 121749)
=0.233549 / 0.237415
=0.9837

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)
=((143706 + 40658) / 393719) / ((144431 + 51684) / 406698)
=0.468263 / 0.482213
=0.9711

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
=(9056 - -3494 - 38253) / 393719
=-0.065283

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.

AT&T has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.


AT&T Business Description

Address
208 S. Akard Street, Dallas, TX, USA, 75202
The wireless business contributes nearly 70% of AT&T's revenue. The firm is the third-largest US wireless carrier, connecting 72 million postpaid and 17 million prepaid phone customers. Fixed-line enterprise services, which account for about 16% of revenue, include internet access, private networking, security, voice, and wholesale network capacity. Residential fixed-line services, about 11% of revenue, primarily consist of broadband internet access, serving 14 million customers. AT&T also has a sizable presence in Mexico, with 23 million customers, but this business only accounts for 4% of revenue. The firm still holds a 70% equity stake in satellite television provider DirecTV but does not consolidate this business in its financial statements.
Executives
Sanders S Sabrina officer: SVP-ChiefActngOfcr&Controller 208 S. AKARD ST., 29TH FLOOR, DALLAS TX 75202
Debra L. Dial officer: SVP-ChiefActngOfcr&Controller 208 S. AKARD, 29TH FLOOR, DALLAS TX 75202
Jeremy Alan Legg officer: Chief Technology Officer 208 S. AKARD STREET, DALLAS TX 75202
Kenny Kellyn Smith officer: Chief Marketing & Growth Ofcr 208 S. AKARD ST, 29TH FLOOR, DALLAS TX 75202
Edward W Gillespie officer: SrEVP-Ext & Legal Affairs 208 S. AKARD, DALLAS TX 75202
Angela Santone officer: Sr. Exec VP-Human Resources 208 S. AKARD ST, DALLAS TX 75202
Jeffery S. Mcelfresh officer: CEO, AT&T Communications, LLC 208 S. AKARD, 29TH FLOOR, DALLAS TX 75202
Mcatee David R Ii officer: Sr. Exec. VP and Gen. Counsel 208 S. AKARD, 29TH FLOOR, DALLAS TX 75202
David S. Huntley officer: SEVP&Chief Compliance Officer 208 S. AKARD, ROOM 2900;07, DALLAS TX 75202
Lori M Lee officer: CEO-AT&T LatAm&GlobalMktgOfcr 208 S. AKARD ST., 29TH FLOOR, DALLAS TX 75202
Pascal Desroches officer: Sr. Exec VP and CFO AT&T INC., 208 S AKARD STREET, DALLAS TX 75202
Stephen J Luczo director
Luis A Ubinas director 209 REDWOOD SHORES PARKWAY, REDWOOD CITY CA 94065-1175
John T Stankey officer: Sr. Exec. VP and CIO 208 S. AKARD ST., 29TH FLOOR, DALLAS TX 75202
Jason Kilar officer: CEO, Warner Media, LLC 208 S. AKARD ST, DALLAS TX 75202