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Apache Corp (NYSE:APA)
Beneish M-Score
-7.03 (As of Today)

The zones of discrimination for M-Score is as such:

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

Apache Corp has a M-score of -7.03 suggests that the company is not a manipulator.

APA' s Beneish M-Score Range Over the Past 10 Years
Min: -9.43   Max: -0.64
Current: -7.03

-9.43
-0.64

During the past 13 years, the highest Beneish M-Score of Apache Corp was -0.64. The lowest was -9.43. And the median was -2.78.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Apache Corp 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 * 1.3368+0.528 * 1.1571+0.404 * 0.3677+0.892 * 0.5975+0.115 * 0.3997
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6318+4.679 * -0.8766-0.327 * 1.1361
=-7.03

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,064 Mil.
Revenue was 1438 + 1382 + 1052 + 959 = $4,831 Mil.
Gross Profit was 1005 + 971 + 622 + 455 = $3,053 Mil.
Total Current Assets was $3,272 Mil.
Total Assets was $23,149 Mil.
Property, Plant and Equipment(Net PPE) was $19,462 Mil.
Depreciation, Depletion and Amortization(DDA) was $28,875 Mil.
Selling, General & Admin. Expense(SGA) was $391 Mil.
Total Current Liabilities was $1,628 Mil.
Long-Term Debt was $8,721 Mil.
Net Income was -607 + -244 + -489 + -16782 = $-18,122 Mil.
Non Operating Income was 100 + 102 + -54 + -103 = $45 Mil.
Cash Flow from Operations was 651 + 707 + 276 + 491 = $2,125 Mil.
Accounts Receivable was $1,332 Mil.
Revenue was 1526 + 2246 + 1630 + 2683 = $8,085 Mil.
Gross Profit was 1018 + 1730 + 1093 + 2071 = $5,912 Mil.
Total Current Assets was $4,079 Mil.
Total Assets was $27,812 Mil.
Property, Plant and Equipment(Net PPE) was $22,377 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,019 Mil.
Selling, General & Admin. Expense(SGA) was $401 Mil.
Total Current Liabilities was $2,167 Mil.
Long-Term Debt was $8,777 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(1064 / 4831) / (1332 / 8085)
=0.22024426 / 0.16474954
=1.3368

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)
=(5912 / 8085) / (3053 / 4831)
=0.73123067 / 0.63196026
=1.1571

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (3272 + 19462) / 23149) / (1 - (4079 + 22377) / 27812)
=0.01792734 / 0.04875593
=0.3677

4. SGI = Sales Growth Index

Ratio of sales 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
=4831 / 8085
=0.5975

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(7019 / (7019 + 22377)) / (28875 / (28875 + 19462))
=0.23877398 / 0.59736848
=0.3997

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(391 / 4831) / (401 / 8085)
=0.08093562 / 0.04959802
=1.6318

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((8721 + 1628) / 23149) / ((8777 + 2167) / 27812)
=0.44706035 / 0.39349921
=1.1361

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
=(-18122 - 45 - 2125) / 23149
=-0.8766

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

Apache Corp has a M-score of -7.03 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Apache Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.0740.95050.56331.63850.98341.03311.02191.09740.77331.2449
GMI 1.03451.00120.98451.05410.96730.98671.01731.02210.99091.1898
AQI 1.17451.17141.17130.93161.66590.83711.18791.12560.56471.3667
SGI 1.06461.23381.24370.69531.40361.39660.98080.87160.88660.4973
DEPI 0.99150.92120.34491.3312.480.88310.74031.13650.59840.2875
SGAI 1.00121.05490.84421.71310.7870.86491.1441.07151.05751.6809
LVGI 1.05590.97191.0771.03741.0270.84351.23220.83841.14281.5537
TATA -0.0821-0.1014-0.2265-0.1683-0.0847-0.1061-0.1072-0.1272-0.2514-1.0334
M-score -2.67-2.73-3.74-3.05-2.08-2.60-3.02-2.98-4.25-7.67

Apache Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.0190.9310.75640.91440.87060.9171.27381.21041.29981.3368
GMI 0.9980.9860.99021.02781.04761.11191.19111.17921.23221.1571
AQI 1.33611.26240.56470.65450.72880.84261.36671.66310.87850.3677
SGI 0.81060.7960.90650.77950.75830.63520.4860.52370.49190.5975
DEPI 0.97710.94580.59840.33980.40790.45110.28750.46680.40410.3997
SGAI 1.14611.15351.0251.15761.2181.40611.731.73431.81671.6318
LVGI 0.84510.9761.14281.35831.46661.5781.55371.87161.23751.1361
TATA -0.1338-0.1606-0.2511-0.3531-0.4928-0.6862-1.1551-1.4117-0.9818-0.8766
M-score -3.10-3.40-4.24-4.75-5.46-6.42-8.23-9.43-7.46-7.03
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