Vodafone Group Plc Stock Beneish M Score

VOD Stock   71.36  0.32  0.45%   
This module uses fundamental data of Vodafone Group to approximate the value of its Beneish M Score. Vodafone Group 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 World Market Map to better understand how to build diversified portfolios, which includes a position in Vodafone Group PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
  
As of November 27, 2024, Short and Long Term Debt Total is expected to decline to about 30 B. In addition to that, Net Debt is expected to decline to about 25.2 B.
At this time, Vodafone Group's M Score is inapplicable. The earnings manipulation may begin if Vodafone Group'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 Group 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 Group'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.
-3.15
Beneish M Score - Inapplicable
Elasticity of Receivables

1.09

Focus
Asset Quality

1.14

Focus
Expense Coverage

0.92

Focus
Gross Margin Strengs

N/A

Focus
Accruals Factor

0.92

Focus
Depreciation Resistance

0.84

Focus
Net Sales Growth

0.86

Focus
Financial Leverage Condition

0.65

Focus

Vodafone Group 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 Group'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 Receivables5.6 B5.9 B
Notably Down
Pretty Stable
Total Revenue31.5 B36.7 B
Fairly Down
Very volatile
Total Assets131.8 B144.3 B
Significantly Down
Pretty Stable
Total Current Assets41.5 B39.6 B
Sufficiently Up
Slightly volatile
Non Current Assets Total106.9 B104.8 B
Fairly Up
Very volatile
Property Plant Equipment26.4 B43.7 B
Way Down
Slightly volatile
Depreciation And Amortization7.8 B10.4 B
Way Down
Slightly volatile
Selling General Administrative4.6 B5.8 B
Significantly Down
Slightly volatile
Total Current Liabilities21.5 B30.2 B
Way Down
Pretty Stable
Non Current Liabilities Total27.3 B53.2 B
Way Down
Slightly volatile
Net Debt25.2 B48.2 B
Way Down
Slightly volatile
Short Term Debt6.5 B8.7 B
Way Down
Pretty Stable
Long Term Debt30.6 B40.9 B
Way Down
Slightly volatile
Total Cash From Operating Activities11.2 B16.6 B
Way Down
Slightly volatile
Short Term Investments5.5 B4.4 B
Significantly Up
Slightly volatile
Long Term Investments5.1 B4.3 B
Fairly Up
Slightly volatile

Vodafone Group PLC 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 Group's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Vodafone Group in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Vodafone Group's degree of accounting gimmicks and manipulations.

About Vodafone Group 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

7.83 Billion

At present, Vodafone Group's Depreciation And Amortization is projected to increase significantly based on the last few years of reporting.

Vodafone Group 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 Group. 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 Receivables7.8B7.3B7.5B7.2B5.9B5.6B
Total Revenue45.0B43.8B45.6B45.7B36.7B31.5B
Total Assets168.2B155.1B154.0B155.5B144.4B131.8B
Total Current Assets32.8B28.3B27.6B30.7B39.6B41.5B
Net Debt56.1B61.0B59.7B49.8B48.2B25.2B
Short Term Debt6.7B9.1B12.6B15.5B8.7B6.5B
Long Term Debt53.8B49.4B48.3B41.4B40.9B30.6B
Operating Income3.6B3.4B5.4B4.5B3.7B3.8B
Investments4.5B(1.6B)1.3B(379M)(6.1B)(5.8B)

Vodafone Group 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 Group's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Vodafone Group's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Vodafone Group Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Vodafone Group PLC's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Vodafone Group using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Vodafone Group PLC 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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When determining whether Vodafone Group PLC is a strong investment it is important to analyze Vodafone Group's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Vodafone Group's future performance. For an informed investment choice regarding Vodafone Stock, refer to the following important reports:
Check out World Market Map to better understand how to build diversified portfolios, which includes a position in Vodafone Group PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
You can also try the Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
Please note, there is a significant difference between Vodafone Group's value and its price as these two are different measures arrived at by different means. Investors typically determine if Vodafone Group is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Vodafone Group's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.