Vodafone Idea Limited Stock Beneish M Score

IDEA Stock   8.36  0.02  0.24%   
This module uses fundamental data of Vodafone Idea to approximate the value of its Beneish M Score. Vodafone Idea M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Risk vs Return Analysis to better understand how to build diversified portfolios, which includes a position in Vodafone Idea Limited. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
  
At this time, Vodafone Idea's Short and Long Term Debt Total is comparatively stable compared to the past year. Net Debt is likely to gain to about 2.6 T in 2024, whereas Short Term Debt is likely to drop slightly above 88.5 B in 2024.
At this time, Vodafone Idea's M Score is inapplicable. The earnings manipulation may begin if Vodafone Idea's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Vodafone Idea executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Vodafone Idea's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-2.84
Beneish M Score - Inapplicable
Elasticity of Receivables

2.25

Focus
Asset Quality

1.29

Focus
Expense Coverage

1.68

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

1.68

Focus
Depreciation Resistance

0.73

Focus
Net Sales Growth

0.57

Focus
Financial Leverage Condition

1.0

Focus

Vodafone Idea Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Vodafone Idea's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Net Receivables27.9 B21.9 B
Significantly Up
Pretty Stable
Total Revenue241 B425.7 B
Way Down
Slightly volatile
Total Assets1.9 T1.8 T
Sufficiently Up
Slightly volatile
Total Current Assets75.3 B129.1 B
Way Down
Slightly volatile
Non Current Assets Total1.8 T1.7 T
Sufficiently Up
Slightly volatile
Property Plant Equipment465.4 B691.4 B
Way Down
Slightly volatile
Depreciation And Amortization237.7 B226.3 B
Sufficiently Up
Slightly volatile
Selling General Administrative773.3 M814 M
Notably Down
Slightly volatile
Total Current Liabilities568.5 B541.4 B
Sufficiently Up
Slightly volatile
Non Current Liabilities Total2.5 T2.4 T
Sufficiently Up
Slightly volatile
Net Debt2.6 T2.4 T
Sufficiently Up
Slightly volatile
Short Term Debt88.5 B165.9 B
Way Down
Slightly volatile
Long Term Debt1.1 TT
Way Down
Slightly volatile
Total Cash From Operating Activities218.7 B208.3 B
Sufficiently Up
Slightly volatile
Short Term Investments5.7 MM
Notably Down
Pretty Stable
Long Term Investments13.6 B13.8 B
Fairly Down
Slightly volatile

Vodafone Idea Limited Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Vodafone Idea's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Vodafone Idea in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Vodafone Idea's degree of accounting gimmicks and manipulations.

About Vodafone Idea Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation And Amortization

237.65 Billion

At this time, Vodafone Idea's Depreciation And Amortization is comparatively stable compared to the past year.

Vodafone Idea Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Vodafone Idea. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201920202021202220232024 (projected)
Net Receivables141.0B25.1B24.4B21.6B21.9B27.9B
Total Revenue449.2B419.4B385.0B421.4B425.7B241.0B
Total Assets2.3T2.0T1.9T2.1T1.8T1.9T
Total Current Assets166.9B141.0B168.4B139.0B129.1B75.3B
Net Debt1.4T2.0T2.1T2.4T2.4T2.6T
Short Term Debt291.7B333.5B263.8B234.1B165.9B88.5B
Long Term Debt962.8B1.6T1.8T1.9T2.0T1.1T
Operating Income(94.6B)(67.0B)(76.2B)(62.3B)(7.4B)(7.8B)
Investments48.9B58.9B150M(54.1B)(19.1B)(18.1B)

Vodafone Idea ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Vodafone Idea's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Vodafone Idea's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Vodafone Idea Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Vodafone Idea Limited's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Vodafone Idea using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Vodafone Idea Limited based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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