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Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-3.12 (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 -3.12 suggests that the company is not a manipulator.

CRZO' s 10-Year Beneish M-Score Range
Min: -4.97   Max: 1.52
Current: -3.12

-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 * 0.7244+0.528 * 1.0033+0.404 * 1.0191+0.892 * 1.359+0.115 * 0.8165
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0033+4.679 * -0.1574-0.327 * 0.8819
=-3.12

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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 $291.1 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.
Net Income was 83.789 + 2.319 + 5.976 + -23.989 = $68.1 Mil.
Non Operating Income was 71.234 + -40.363 + -21.254 + -1.841 = $7.8 Mil.
Cash Flow from Operations was 192.782 + 92.352 + 102.391 + 56.998 = $444.5 Mil.
Accounts Receivable was $114.9 Mil.
Revenue was 144.329 + 134.224 + 111.901 + 107.45 = $497.9 Mil.
Gross Profit was 123.68 + 114.98 + 95.333 + 93.137 = $427.1 Mil.
Total Current Assets was $137.2 Mil.
Total Assets was $2,072.0 Mil.
Property, Plant and Equipment(Net PPE) was $1,901.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $195.7 Mil.
Selling, General & Admin. Expense(SGA) was $65.5 Mil.
Total Current Liabilities was $354.1 Mil.
Long-Term Debt was $987.1 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)
=(113.107 / 676.64) / (114.901 / 497.904)
=0.16715979 / 0.23076939
=0.7244

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)
=(166.009 / 497.904) / (164.578 / 676.64)
=0.85785613 / 0.85499527
=1.0033

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 - (145.159 + 2255.147) / 2440.834) / (1 - (137.165 + 1901.072) / 2071.995)
=0.01660416 / 0.01629251
=1.0191

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
=676.64 / 497.904
=1.359

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))
=(195.749 / (195.749 + 1901.072)) / (291.145 / (291.145 + 2255.147))
=0.09335513 / 0.11434077
=0.8165

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)
=(89.251 / 676.64) / (65.456 / 497.904)
=0.13190323 / 0.13146309
=1.0033

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)
=((1019.791 + 373.526) / 2440.834) / ((987.074 + 354.064) / 2071.995)
=0.57083644 / 0.64726894
=0.8819

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
=(68.095 - 7.776 - 444.523) / 2440.834
=-0.1574

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 -3.12 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 1.04361.31040.97910.67320.47171.8891.19571.21131.13090.6559
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 -2.73-2.19-3.25-2.50-3.31-3.19-2.54-2.33-2.25-3.42

Carrizo Oil & Gas Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.51041.65131.13091.02170.83860.57610.65590.67770.80790.7244
GMI 0.95020.95690.95620.94720.96180.98030.99520.99840.99921.0033
AQI 0.69610.6140.91450.36750.43610.37060.1750.85940.46531.0191
SGI 1.68951.73771.82121.67221.65381.57321.41281.4161.3891.359
DEPI 0.72780.71590.63720.64660.82050.90750.94080.90570.85920.8165
SGAI 0.56880.73720.64390.72790.82040.82461.12611.18591.23211.0033
LVGI 1.08041.12731.04510.97770.97320.93880.86180.87470.92870.8819
TATA -0.1395-0.105-0.1212-0.1037-0.1199-0.1389-0.1445-0.152-0.115-0.1574
M-score -2.18-1.92-2.25-2.62-2.84-3.23-3.42-3.18-3.10-3.12
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