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Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-3.18 (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.

Carrizo Oil & Gas Inc has a M-score of -3.18 suggests that the company is not a manipulator.

CRZO' s 10-Year Beneish M-Score Range
Min: -4.97   Max: 1.52
Current: -3.18

-4.97
1.52

During the past 13 years, the highest Beneish M-Score of Carrizo Oil & Gas Inc was 1.52. The lowest was -4.97. And the median was -2.72.


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 Carrizo Oil & Gas Inc 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 * 0.6777+0.528 * 0.9984+0.404 * 0.8594+0.892 * 1.416+0.115 * 0.9057
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1859+4.679 * -0.152-0.327 * 0.8747
=-3.18

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $123.8 Mil.
Revenue was 157.212 + 129.728 + 144.329 + 134.224 = $565.5 Mil.
Gross Profit was 137.088 + 110.849 + 123.68 + 114.98 = $486.6 Mil.
Total Current Assets was $197.9 Mil.
Total Assets was $2,169.1 Mil.
Property, Plant and Equipment(Net PPE) was $1,938.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $232.7 Mil.
Selling, General & Admin. Expense(SGA) was $89.6 Mil.
Total Current Liabilities was $363.1 Mil.
Long-Term Debt was $900.4 Mil.
Net Income was 5.976 + -23.989 + 4.521 + 36.969 = $23.5 Mil.
Non Operating Income was -21.254 + -1.841 + -27.63 + 25.753 = $-25.0 Mil.
Cash Flow from Operations was 102.391 + 56.998 + 96.211 + 122.521 = $378.1 Mil.
Accounts Receivable was $129.0 Mil.
Revenue was 111.901 + 107.45 + 96.197 + 83.818 = $399.4 Mil.
Gross Profit was 95.333 + 93.137 + 83.276 + 71.363 = $343.1 Mil.
Total Current Assets was $231.1 Mil.
Total Assets was $1,937.2 Mil.
Property, Plant and Equipment(Net PPE) was $1,671.7 Mil.
Depreciation, Depletion and Amortization(DDA) was $179.8 Mil.
Selling, General & Admin. Expense(SGA) was $53.3 Mil.
Total Current Liabilities was $321.5 Mil.
Long-Term Debt was $968.7 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)
=(123.754 / 565.493) / (128.962 / 399.366)
=0.21884267 / 0.32291682
=0.6777

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)
=(110.849 / 399.366) / (137.088 / 565.493)
=0.85913423 / 0.8604828
=0.9984

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 - (197.853 + 1938.193) / 2169.064) / (1 - (231.136 + 1671.725) / 1937.172)
=0.01522223 / 0.0177119
=0.8594

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
=565.493 / 399.366
=1.416

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))
=(179.757 / (179.757 + 1671.725)) / (232.717 / (232.717 + 1938.193))
=0.09708817 / 0.1071979
=0.9057

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)
=(89.58 / 565.493) / (53.346 / 399.366)
=0.15841045 / 0.13357672
=1.1859

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)
=((900.425 + 363.148) / 2169.064) / ((968.663 + 321.548) / 1937.172)
=0.58254298 / 0.66602811
=0.8747

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
=(23.477 - -24.972 - 378.121) / 2169.064
=-0.152

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.

Carrizo Oil & Gas Inc has a M-score of -3.18 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 own currency.

Carrizo Oil & Gas Inc Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.04361.31040.97910.67320.47171.8891.19571.21131.22930.6418
GMI 0.98280.96931.08050.99751.01151.10070.93120.95280.95620.9952
AQI 0.64260.78180.72591.70420.93954.05980.80841.23680.91450.175
SGI 1.36071.49161.06131.51651.72250.52651.21081.46371.82121.4128
DEPI 1.15241.09840.97551.07371.09020.84311.44970.71530.63720.9408
SGAI 1.01510.91621.28310.80950.72382.42750.98410.79040.64391.1261
LVGI 1.04121.28930.96110.97881.13381.26950.84721.08711.04510.8618
TATA -0.0973-0.056-0.1491-0.1103-0.2105-0.4375-0.0887-0.1082-0.1212-0.1445
M-score -2.73-2.19-3.25-2.50-3.31-3.19-2.54-2.33-2.16-3.44

Carrizo Oil & Gas Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.21131.34441.51041.65131.22931.02170.89260.60580.64180.6777
GMI 0.95280.95320.95020.95690.95620.94720.96180.98030.99520.9984
AQI 1.23680.60260.69610.6140.91450.36750.43610.37060.1750.8594
SGI 1.46371.66751.68951.73771.82121.67221.65381.57321.41281.416
DEPI 0.71530.76180.72780.71590.63720.64660.82050.9090.94080.9057
SGAI 0.79040.68780.56880.73720.64390.72790.82040.82461.12611.1859
LVGI 1.08711.09631.08041.12731.04510.97770.97320.93880.86180.8747
TATA -0.1082-0.1134-0.1395-0.105-0.1212-0.1037-0.1199-0.1389-0.1445-0.152
M-score -2.33-2.29-2.18-1.92-2.16-2.62-2.79-3.21-3.44-3.18
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