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Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-3.24 (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 -3.24 suggests that the company is not a manipulator.

CRZO' s 10-Year Beneish M-Score Range
Min: -4.97   Max: 1.52
Current: -3.24

-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 -2.73.


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 * 0.6468+0.528 * 1.0917+0.404 * 1.5324+0.892 * 0.9333+0.115 * 1.0595
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7733+4.679 * -0.1512-0.327 * 0.9285
=-3.24

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $81.2 Mil.
Revenue was 123.494 + 100.05 + 163.275 + 196.225 = $583.0 Mil.
Gross Profit was 93.365 + 71.283 + 130.361 + 164.578 = $459.6 Mil.
Total Current Assets was $201.5 Mil.
Total Assets was $3,077.8 Mil.
Property, Plant and Equipment(Net PPE) was $2,824.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $325.2 Mil.
Selling, General & Admin. Expense(SGA) was $71.8 Mil.
Total Current Liabilities was $341.1 Mil.
Long-Term Debt was $1,372.8 Mil.
Net Income was -46.132 + -21.21 + 134.259 + 83.789 = $150.7 Mil.
Non Operating Income was -12.876 + 19.447 + 209.374 + -71.234 = $144.7 Mil.
Cash Flow from Operations was 91.166 + 73.266 + 114.094 + 192.782 = $471.3 Mil.
Accounts Receivable was $134.5 Mil.
Revenue was 193.475 + 157.212 + 129.728 + 144.329 = $624.7 Mil.
Gross Profit was 166.009 + 137.088 + 110.849 + 123.68 = $537.6 Mil.
Total Current Assets was $162.7 Mil.
Total Assets was $2,330.4 Mil.
Property, Plant and Equipment(Net PPE) was $2,142.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $263.2 Mil.
Selling, General & Admin. Expense(SGA) was $99.4 Mil.
Total Current Liabilities was $376.1 Mil.
Long-Term Debt was $1,021.6 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)
=(81.182 / 583.044) / (134.492 / 624.744)
=0.13923821 / 0.21527538
=0.6468

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)
=(71.283 / 624.744) / (93.365 / 583.044)
=0.86055408 / 0.7882544
=1.0917

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 - (201.464 + 2824.445) / 3077.75) / (1 - (162.712 + 2142.101) / 2330.428)
=0.0168438 / 0.01099154
=1.5324

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
=583.044 / 624.744
=0.9333

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))
=(263.162 / (263.162 + 2142.101)) / (325.245 / (325.245 + 2824.445))
=0.1094109 / 0.10326254
=1.0595

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)
=(71.758 / 583.044) / (99.428 / 624.744)
=0.12307476 / 0.15914999
=0.7733

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)
=((1372.785 + 341.066) / 3077.75) / ((1021.606 + 376.064) / 2330.428)
=0.55685192 / 0.5997482
=0.9285

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
=(150.706 - 144.711 - 471.308) / 3077.75
=-0.1512

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 -3.24 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 1.31040.97910.67320.47171.8891.18421.22311.22930.60340.6511
GMI 0.96931.08050.99751.01151.10070.94020.94370.95620.99521.0155
AQI 0.78180.72591.70420.93954.05980.80840.71941.57210.1751.4166
SGI 1.49161.06131.51651.72250.52651.22251.44961.82121.41281.3653
DEPI 1.09840.97551.07371.09020.84311.44970.75290.60540.94080.9886
SGAI 0.91621.28310.80950.72382.45240.96480.80270.64011.12610.7281
LVGI 1.28930.96110.97881.13381.26950.84721.10681.02650.86181.0278
TATA -0.056-0.1491-0.1103-0.2105-0.4375-0.0887-0.1075-0.1212-0.1445-0.1593
M-score -2.19-3.25-2.50-3.31-3.20-2.53-2.55-1.89-3.47-3.01

Carrizo Oil & Gas Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.02170.83860.57610.60340.67770.80790.72440.65110.57790.6468
GMI 0.94720.96180.98030.99520.99840.99921.00331.01551.05581.0917
AQI 0.36750.43610.37060.1750.85940.46531.01911.41661.31231.5324
SGI 1.67221.65381.57321.41281.4161.3891.3591.36531.15480.9333
DEPI 0.6470.82150.9090.94080.90480.85760.81420.98861.00711.0595
SGAI 0.72380.81540.81861.12611.1861.23241.00440.72810.77670.7733
LVGI 0.97770.97320.93880.86180.87470.92870.88191.02780.92040.9285
TATA -0.1045-0.1204-0.1394-0.1445-0.152-0.115-0.099-0.118-0.128-0.1512
M-score -2.62-2.84-3.23-3.47-3.18-3.10-2.85-2.81-3.11-3.24
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