Time Warner Beneish M-Score Historical Data
The historical data trend for Time Warner'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.
Time Warner Beneish M-Score Chart
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Time Warner Annual Data
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Trend |
Dec08 |
Dec09 |
Dec10 |
Dec11 |
Dec12 |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
| Beneish M-Score |
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-2.48 |
-2.44 |
-2.48 |
-2.31 |
-2.32 |
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Time Warner Quarterly Data
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Jun13 |
Sep13 |
Dec13 |
Mar14 |
Jun14 |
Sep14 |
Dec14 |
Mar15 |
Jun15 |
Sep15 |
Dec15 |
Mar16 |
Jun16 |
Sep16 |
Dec16 |
Mar17 |
Jun17 |
Sep17 |
Dec17 |
Mar18 |
| Beneish M-Score |
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-2.40 |
-2.36 |
-2.38 |
-2.32 |
-2.18 |
Competitive Comparison of Time Warner's Beneish M-Score
For the Broadcasting subindustry, Time Warner'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.
Time Warner's Beneish M-Score Distribution in the Media - Diversified Industry
For the Media - Diversified industry and Communication Services sector, Time Warner's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Time Warner's Beneish M-Score falls into.
Time Warner 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 Time Warner 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 * 1.1354 | + | 0.528 * 1.024 | + | 0.404 * 0.9671 | + | 0.892 * 1.0601 | + | 0.115 * 1.0001 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.0205 | + | 4.679 * 0.025479 | - | 0.327 * 0.9736 |
| = | -2.18 |
* 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 (Mar18) TTM: | Last Year (Mar17) TTM: |
Total Receivables was $10,279 Mil.
Revenue was 7996 + 8611 + 7595 + 7330 = $31,532 Mil.
Gross Profit was 3279 + 3430 + 3667 + 3125 = $13,501 Mil.
Total Current Assets was $15,138 Mil.
Total Assets was $68,997 Mil.
Property, Plant and Equipment(Net PPE) was $2,753 Mil.
Depreciation, Depletion and Amortization(DDA) was $10,149 Mil.
Selling, General, & Admin. Expense(SGA) was $5,565 Mil.
Total Current Liabilities was $12,945 Mil.
Long-Term Debt & Capital Lease Obligation was $18,331 Mil.
Net Income was 1643 + 1389 + 1372 + 1062 = $5,466 Mil.
Non Operating Income was -117 + -1151 + -69 + 111 = $-1,226 Mil.
Cash Flow from Operations was 1316 + 1132 + 1494 + 992 = $4,934 Mil.
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Total Receivables was $8,540 Mil.
Revenue was 7735 + 7891 + 7167 + 6952 = $29,745 Mil.
Gross Profit was 3403 + 3233 + 3294 + 3112 = $13,042 Mil.
Total Current Assets was $12,908 Mil.
Total Assets was $65,649 Mil.
Property, Plant and Equipment(Net PPE) was $2,462 Mil.
Depreciation, Depletion and Amortization(DDA) was $9,082 Mil.
Selling, General, & Admin. Expense(SGA) was $5,144 Mil.
Total Current Liabilities was $8,162 Mil.
Long-Term Debt & Capital Lease Obligation was $22,402 Mil.
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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) |
| = | (10279 / 31532) | / | (8540 / 29745) |
| = | 0.325986 | / | 0.287107 |
| | = | 1.1354 |
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) |
| = | (13042 / 29745) | / | (13501 / 31532) |
| = | 0.43846 | / | 0.428168 |
| | = | 1.024 |
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 - (15138 + 2753) / 68997) | / | (1 - (12908 + 2462) / 65649) |
| = | 0.740699 | / | 0.765876 |
| | = | 0.9671 |
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 |
| = | 31532 | / | 29745 |
| | = | 1.0601 |
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)) |
| = | (9082 / (9082 + 2462)) | / | (10149 / (10149 + 2753)) |
| = | 0.786729 | / | 0.786622 |
| | = | 1.0001 |
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) |
| = | (5565 / 31532) | / | (5144 / 29745) |
| = | 0.176487 | / | 0.172937 |
| | = | 1.0205 |
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) |
| = | ((18331 + 12945) / 68997) | / | ((22402 + 8162) / 65649) |
| = | 0.453295 | / | 0.465567 |
| | = | 0.9736 |
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 |
| = | (5466 - -1226 | - | 4934) | / | 68997 |
| | = | 0.025479 |
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.
Time Warner has a M-score of -2.18 suggests that the company is unlikely to be a manipulator.
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