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Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-5.20 (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 -5.20 suggests that the company is not a manipulator.

CRZO' s Beneish M-Score Range Over the Past 10 Years
Min: -5.2   Max: 1.52
Current: -5.2

-5.2
1.52

During the past 13 years, the highest Beneish M-Score of Carrizo Oil & Gas Inc was 1.52. The lowest was -5.20. And the median was -2.74.


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 * 0.6953+0.528 * 1.1317+0.404 * 1.9742+0.892 * 0.7287+0.115 * 0.8488
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0214+4.679 * -0.5444-0.327 * 1.2954
=-5.20

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $57.3 Mil.
Revenue was 106.237 + 123.494 + 100.05 + 163.275 = $493.1 Mil.
Gross Profit was 77.504 + 93.365 + 71.283 + 130.361 = $372.5 Mil.
Total Current Assets was $171.3 Mil.
Total Assets was $2,318.3 Mil.
Property, Plant and Equipment(Net PPE) was $2,071.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $322.9 Mil.
Selling, General & Admin. Expense(SGA) was $66.4 Mil.
Total Current Liabilities was $302.1 Mil.
Long-Term Debt was $1,412.2 Mil.
Net Income was -707.647 + -46.132 + -21.21 + 134.259 = $-640.7 Mil.
Non Operating Income was 24.236 + -12.876 + 19.447 + 193.545 = $224.4 Mil.
Cash Flow from Operations was 118.54 + 91.166 + 73.266 + 114.094 = $397.1 Mil.
Accounts Receivable was $113.1 Mil.
Revenue was 196.225 + 193.475 + 157.212 + 129.728 = $676.6 Mil.
Gross Profit was 164.578 + 166.009 + 137.088 + 110.849 = $578.5 Mil.
Total Current Assets was $145.2 Mil.
Total Assets was $2,440.8 Mil.
Property, Plant and Equipment(Net PPE) was $2,255.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $291.6 Mil.
Selling, General & Admin. Expense(SGA) was $89.3 Mil.
Total Current Liabilities was $373.5 Mil.
Long-Term Debt was $1,019.8 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)
=(57.305 / 493.056) / (113.107 / 676.64)
=0.11622412 / 0.16715979
=0.6953

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)
=(93.365 / 676.64) / (77.504 / 493.056)
=0.85499527 / 0.75551864
=1.1317

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 - (171.276 + 2071.019) / 2318.287) / (1 - (145.159 + 2255.147) / 2440.834)
=0.03277938 / 0.01660416
=1.9742

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
=493.056 / 676.64
=0.7287

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))
=(291.616 / (291.616 + 2255.147)) / (322.929 / (322.929 + 2071.019))
=0.11450457 / 0.13489391
=0.8488

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)
=(66.427 / 493.056) / (89.251 / 676.64)
=0.13472506 / 0.13190323
=1.0214

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)
=((1412.221 + 302.083) / 2318.287) / ((1019.791 + 373.526) / 2440.834)
=0.73947013 / 0.57083644
=1.2954

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
=(-640.73 - 224.352 - 397.066) / 2318.287
=-0.5444

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 -5.20 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.31040.97910.67320.47171.8891.19571.21131.13090.69760.6122
GMI 0.96931.08050.99751.01151.10070.93120.95280.95620.99521.0155
AQI 0.78180.72591.70420.93954.05980.80841.23680.91450.1751.4166
SGI 1.49161.06131.51651.72250.52651.21081.46371.82121.41281.3653
DEPI 1.09840.97551.07371.09020.84311.44970.71530.63720.93890.9905
SGAI 0.91621.28310.80950.72382.42750.98410.79040.64391.12610.7281
LVGI 1.28930.96110.97881.13381.26950.84721.08711.04510.86181.0278
TATA -0.056-0.1491-0.1103-0.2105-0.4375-0.0887-0.1082-0.1212-0.123-0.1593
M-score -2.19-3.25-2.50-3.31-3.19-2.54-2.33-2.25-3.28-3.04

Carrizo Oil & Gas Inc Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.83860.57610.69760.67770.80790.72440.61220.57790.64680.6953
GMI 0.97751.0160.97550.98030.98310.98061.01551.05581.09171.1317
AQI 0.43610.37060.1750.85940.46531.01911.41661.31231.53241.9742
SGI 1.65381.57321.41281.4161.3891.3591.36531.15480.93330.7287
DEPI 0.82050.90750.93890.90410.85780.81530.99051.00851.06040.8488
SGAI 0.82040.82461.12611.18591.23211.00330.72810.77670.77331.0214
LVGI 0.97320.93880.86180.87470.92870.88191.02780.92040.92851.2954
TATA -0.1199-0.1655-0.1336-0.1414-0.1052-0.1249-0.1601-0.1691-0.192-0.5444
M-score -2.83-3.34-3.34-3.14-3.06-2.98-3.05-3.30-3.43-5.20
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