Switch to:
Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-3.58 (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 -3.58 suggests that the company is not a manipulator.

CRZO' s Beneish M-Score Range Over the Past 10 Years
Min: -3.58   Max: -0.19
Current: -3.58

-3.58
-0.19

During the past 13 years, the highest Beneish M-Score of Carrizo Oil & Gas Inc was -0.19. The lowest was -3.58. 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 * 0.9742+0.528 * 1.1576+0.404 * 1.5561+0.892 * 0.6044+0.115 * 0.7241
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.444+4.679 * -0.1779-0.327 * 1.2767
=-3.58

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $54.7 Mil.
Revenue was 99.422 + 106.237 + 123.494 + 100.05 = $429.2 Mil.
Gross Profit was 70.061 + 77.504 + 93.365 + 71.283 = $312.2 Mil.
Total Current Assets was $232.2 Mil.
Total Assets was $2,026.9 Mil.
Property, Plant and Equipment(Net PPE) was $1,716.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $300.0 Mil.
Selling, General & Admin. Expense(SGA) was $67.2 Mil.
Total Current Liabilities was $285.5 Mil.
Long-Term Debt was $1,255.7 Mil.
Net Income was -380.165 + -707.647 + -46.132 + -21.21 = $-1,155.2 Mil.
Non Operating Income was -1202.704 + 24.236 + -12.876 + 19.447 = $-1,171.9 Mil.
Cash Flow from Operations was 94.395 + 118.54 + 91.166 + 73.266 = $377.4 Mil.
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.



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)
=(54.721 / 429.203) / (92.946 / 710.187)
=0.12749445 / 0.13087539
=0.9742

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)
=(77.504 / 710.187) / (70.061 / 429.203)
=0.84208244 / 0.72742502
=1.1576

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 - (232.182 + 1716.861) / 2026.905) / (1 - (278.621 + 2629.253) / 2981.476)
=0.03841423 / 0.02468643
=1.5561

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
=429.203 / 710.187
=0.6044

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))
=(317.383 / (317.383 + 2629.253)) / (300.035 / (300.035 + 1716.861))
=0.10771028 / 0.14876077
=0.7241

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)
=(67.224 / 429.203) / (77.029 / 710.187)
=0.15662519 / 0.10846298
=1.444

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)
=((1255.676 + 285.484) / 2026.905) / ((1351.346 + 424.304) / 2981.476)
=0.76035137 / 0.59556072
=1.2767

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
=(-1155.154 - -1171.897 - 377.367) / 2026.905
=-0.1779

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 -3.58 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.97910.67320.47171.8891.19571.21131.13090.69760.61220.9742
GMI 1.08050.99751.01151.10070.93120.95280.95620.99521.01551.1576
AQI 0.72591.70420.93954.05980.80841.23680.91450.1751.41661.5561
SGI 1.06131.51651.72250.52651.21081.46371.82121.41281.36530.6044
DEPI 0.97551.07371.09020.84311.44970.71530.63590.94080.99050.7241
SGAI 1.28310.80950.72382.42750.98410.79040.64391.12610.72811.444
LVGI 0.96110.97881.13381.26950.84721.08711.04510.86181.02781.2767
TATA -0.1491-0.1108-0.2105-0.4375-0.0887-0.1082-0.1212-0.123-0.1593-0.1766
M-score -3.25-2.51-3.31-3.19-2.54-2.33-2.25-3.28-3.04-3.57

Carrizo Oil & Gas Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.57610.69760.67770.80790.72440.61220.57790.64680.69530.9742
GMI 0.98030.99520.99840.99921.00331.01551.05581.09171.13171.1576
AQI 0.37060.1750.85940.46531.01911.41661.31231.53241.97421.5561
SGI 1.57321.41281.4161.3891.3591.36531.15480.93330.72870.6044
DEPI 0.90590.94080.90570.85940.81670.99051.00851.06040.84880.7241
SGAI 0.82461.12611.18591.23211.00330.72810.77670.77331.02141.444
LVGI 0.93880.86180.87470.92870.88191.02780.92040.92851.29541.2767
TATA -0.1259-0.1504-0.1578-0.1204-0.1731-0.1601-0.1691-0.192-0.5444-0.1779
M-score -3.17-3.41-3.20-3.12-3.20-3.05-3.30-3.43-5.20-3.58
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK