Canadian Natural Resources (Canadian Natural Resources) Beneish M-Score : -2.70 (As of Apr. 25, 2024)

View and export this data going back to 2000. Start your Free Trial

What is Canadian Natural Resources 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 -2.7 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Canadian Natural Resources's Beneish M-Score or its related term are showing as below:

CNQ' s Beneish M-Score Range Over the Past 10 Years
Min: -11.18 Med: -2.96 Max: 31.59
Current: -2.7

During the past 13 years, the highest Beneish M-Score of Canadian Natural Resources was 31.59. The lowest was -11.18. And the median was -2.96.

Canadian Natural Resources Beneish M-Score Historical Data

The historical data trend for Canadian Natural Resources'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.

Canadian Natural Resources Beneish M-Score Chart

Canadian Natural Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-2.15

31.59

-3.23

-2.75

-2.70

Canadian Natural Resources Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-2.75	-2.92	-3.00	-2.44	-2.70

Competitive Comparison of Canadian Natural Resources's Beneish M-Score

For the Oil & Gas E&P subindustry, Canadian Natural Resources'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.

Canadian Natural Resources's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Canadian Natural Resources's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Canadian Natural Resources's Beneish M-Score falls into.

Canadian Natural Resources 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 Canadian Natural Resources for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.1367

0.528 * 1.1468

0.404 * 0.9807

0.892 * 0.7991

0.115 * 1.1619

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.935

4.679 * -0.058904

0.327 * 0.8784

-2.67

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $2,377 Mil.
Revenue was 7959.899 + 8692.632 + 6658.136 + 6978.002 = $30,289 Mil.
Gross Profit was 2300.984 + 2970.956 + 1469.216 + 1983.483 = $8,725 Mil.
Total Current Assets was $5,342 Mil.
Total Assets was $56,615 Mil.
Property, Plant and Equipment(Net PPE) was $50,870 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,760 Mil.
Selling, General, & Admin. Expense(SGA) was $699 Mil.
Total Current Liabilities was $5,542 Mil.
Long-Term Debt & Capital Lease Obligation was $7,319 Mil.
Net Income was 1958.11 + 1732.318 + 1101.159 + 1314.77 = $6,106 Mil.
Non Operating Income was 190.072 + -138.94 + 209.243 + -5.847 = $255 Mil.
Cash Flow from Operations was 3588.998 + 2585.175 + 2066.085 + 946.43 = $9,187 Mil.

Total Receivables was $2,617 Mil.
Revenue was 8105.999 + 9426.494 + 10787.254 + 9582.938 = $37,903 Mil.
Gross Profit was 1214.575 + 3517.505 + 4016.714 + 3771.722 = $12,521 Mil.
Total Current Assets was $5,195 Mil.
Total Assets was $56,049 Mil.
Property, Plant and Equipment(Net PPE) was $50,447 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,569 Mil.
Selling, General, & Admin. Expense(SGA) was $936 Mil.
Total Current Liabilities was $6,368 Mil.
Long-Term Debt & Capital Lease Obligation was $8,127 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)
	=	(2377.013 / 30288.669)	/	(2616.857 / 37902.685)
	=	0.078479	/	0.069041
	=	1.1367

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)
	=	(12520.516 / 37902.685)	/	(8724.639 / 30288.669)
	=	0.330333	/	0.28805
	=	1.1468

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 - (5342.129 + 50869.857) / 56615.236)	/	(1 - (5194.7 + 50446.816) / 56048.583)
	=	0.007123	/	0.007263
	=	0.9807

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
	=	30288.669	/	37902.685
	=	0.7991

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))
	=	(5569.198 / (5569.198 + 50446.816))	/	(4759.94 / (4759.94 + 50869.857))
	=	0.099422	/	0.085565
	=	1.1619

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)
	=	(699.197 / 30288.669)	/	(935.828 / 37902.685)
	=	0.023084	/	0.02469
	=	0.935

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)
	=	((7318.873 + 5541.89) / 56615.236)	/	((8127.346 + 6368.053) / 56048.583)
	=	0.227161	/	0.258622
	=	0.8784

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
	=	(6106.357 - 254.528	-	9186.688)	/	56615.236
	=	-0.058904

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.

Canadian Natural Resources has a M-score of -2.67 suggests that the company is unlikely to be a manipulator.

Canadian Natural Resources Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Canadian Natural Resources's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.

Canadian Natural Resources (Canadian Natural Resources) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Canadian Natural Resources Ltd (NYSE:CNQ) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

CRC:Germany CRC:Germany CNQ:Canada

Address

855 - 2nd Street South West, Suite 2100, Calgary, AB, CAN, T2P 4J8

Website

https://www.cnrl.com

Canadian Natural Resources Ltd is an independent crude oil and natural gas exploration, development, and production company. The Company's exploration and production operations are focused in North America, largely in Western Canada; the United Kingdom (UK) portion of the North Sea, and Cote d'Ivoire and South Africa in Offshore Africa. The Company's exploration and production activities are conducted in three geographic segments: North America, the North Sea, and Offshore Africa. These activities include the exploration, development, production, and marketing of crude oil, natural gas liquids, and natural gas. The company has two divisions; Oil Sands Mining and Upgrading Midstream and Refining. It derives a majority of its revenue from North America.