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Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-3.04 (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 -3.04 suggests that the company is not a manipulator.

CRZO' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -0.19
Current: -3.04

-3.41
-0.19

During the past 13 years, the highest Beneish M-Score of Carrizo Oil & Gas Inc was -0.19. The lowest was -3.41. And the median was -2.62.


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 * 0.6122+0.528 * 1.0155+0.404 * 1.4166+0.892 * 1.3653+0.115 * 0.9905
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7281+4.679 * -0.1593-0.327 * 1.0278
=-3.04

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $92.9 Mil.
Revenue was 163.275 + 196.225 + 193.475 + 157.212 = $710.2 Mil.
Gross Profit was 130.361 + 164.578 + 166.009 + 137.088 = $598.0 Mil.
Total Current Assets was $278.6 Mil.
Total Assets was $2,981.5 Mil.
Property, Plant and Equipment(Net PPE) was $2,629.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $317.4 Mil.
Selling, General & Admin. Expense(SGA) was $77.0 Mil.
Total Current Liabilities was $424.3 Mil.
Long-Term Debt was $1,351.3 Mil.
Net Income was 134.259 + 83.789 + 2.319 + 5.976 = $226.3 Mil.
Non Operating Income was 190.14 + 71.234 + -40.363 + -21.254 = $199.8 Mil.
Cash Flow from Operations was 114.094 + 192.782 + 92.352 + 102.391 = $501.6 Mil.
Accounts Receivable was $111.2 Mil.
Revenue was 129.728 + 144.329 + 134.224 + 111.901 = $520.2 Mil.
Gross Profit was 110.849 + 123.68 + 114.98 + 95.333 = $444.8 Mil.
Total Current Assets was $279.8 Mil.
Total Assets was $2,110.8 Mil.
Property, Plant and Equipment(Net PPE) was $1,794.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $214.3 Mil.
Selling, General & Admin. Expense(SGA) was $77.5 Mil.
Total Current Liabilities was $322.8 Mil.
Long-Term Debt was $900.2 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)
=(92.946 / 710.187) / (111.195 / 520.182)
=0.13087539 / 0.21376172
=0.6122

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)
=(164.578 / 520.182) / (130.361 / 710.187)
=0.85516608 / 0.84208244
=1.0155

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 - (278.621 + 2629.253) / 2981.476) / (1 - (279.761 + 1794.215) / 2110.76)
=0.02468643 / 0.0174269
=1.4166

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
=710.187 / 520.182
=1.3653

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))
=(214.291 / (214.291 + 1794.215)) / (317.383 / (317.383 + 2629.253))
=0.10669174 / 0.10771028
=0.9905

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)
=(77.029 / 710.187) / (77.492 / 520.182)
=0.10846298 / 0.14897094
=0.7281

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)
=((1351.346 + 424.304) / 2981.476) / ((900.247 + 322.835) / 2110.76)
=0.59556072 / 0.579451
=1.0278

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
=(226.343 - 199.757 - 501.619) / 2981.476
=-0.1593

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 -3.04 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.65131.13091.02170.83860.57610.69760.67770.80790.72440.6122
GMI 0.95690.95620.94720.96180.98030.99520.99840.99921.00331.0155
AQI 0.6140.91450.36750.43610.37060.1750.85940.46531.01911.4166
SGI 1.73771.82121.67221.65381.57321.41281.4161.3891.3591.3653
DEPI 0.71590.63720.64660.82050.90750.93890.90410.85780.81530.9905
SGAI 0.73720.64390.72790.82040.82461.12611.18591.23211.00330.7281
LVGI 1.12731.04510.97770.97320.93880.86180.87470.92870.88191.0278
TATA -0.105-0.1212-0.1037-0.1199-0.1389-0.123-0.1311-0.0955-0.1388-0.1593
M-score -1.92-2.25-2.62-2.84-3.23-3.28-3.08-3.01-3.04-3.04
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