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Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-4.39 (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 -4.39 suggests that the company is not a manipulator.

CRZO' s Beneish M-Score Range Over the Past 10 Years
Min: -5.78   Max: 1.52
Current: -4.39

-5.78
1.52

During the past 13 years, the highest Beneish M-Score of Carrizo Oil & Gas Inc was 1.52. The lowest was -5.78. And the median was -2.81.


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 * 1.0197+0.528 * 1.1147+0.404 * 0.3789+0.892 * 0.6762+0.115 * 0.6426
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1846+4.679 * -0.2354-0.327 * 1.849
=-4.39

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $56.0 Mil.
Revenue was 107.324 + 81.262 + 99.422 + 106.237 = $394.2 Mil.
Gross Profit was 79.133 + 52.086 + 70.061 + 77.504 = $278.8 Mil.
Total Current Assets was $98.9 Mil.
Total Assets was $1,457.6 Mil.
Property, Plant and Equipment(Net PPE) was $1,349.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $258.4 Mil.
Selling, General & Admin. Expense(SGA) was $57.5 Mil.
Total Current Liabilities was $202.6 Mil.
Long-Term Debt was $1,298.2 Mil.
Net Income was -262.126 + -311.395 + -380.165 + -707.647 = $-1,661.3 Mil.
Non Operating Income was -250.467 + -263.767 + -355.437 + -787.516 = $-1,657.2 Mil.
Cash Flow from Operations was 72.171 + 53.868 + 94.395 + 118.54 = $339.0 Mil.
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.



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)
=(55.976 / 394.245) / (81.182 / 583.044)
=0.14198278 / 0.13923821
=1.0197

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)
=(459.587 / 583.044) / (278.784 / 394.245)
=0.7882544 / 0.70713389
=1.1147

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 - (98.874 + 1349.467) / 1457.643) / (1 - (201.464 + 2824.445) / 3077.75)
=0.00638154 / 0.0168438
=0.3789

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
=394.245 / 583.044
=0.6762

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))
=(325.245 / (325.245 + 2824.445)) / (258.376 / (258.376 + 1349.467))
=0.10326254 / 0.16069728
=0.6426

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)
=(57.479 / 394.245) / (71.758 / 583.044)
=0.14579513 / 0.12307476
=1.1846

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)
=((1298.196 + 202.647) / 1457.643) / ((1372.785 + 341.066) / 3077.75)
=1.02963689 / 0.55685192
=1.849

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
=(-1661.333 - -1657.187 - 338.974) / 1457.643
=-0.2354

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 -4.39 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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.67770.80790.72440.61220.57790.64680.69530.97421.08971.0197
GMI 0.99840.99921.00331.01551.05581.09171.13171.15761.14161.1147
AQI 0.85940.46531.01911.41661.31231.53241.97421.55610.26650.3789
SGI 1.4161.3891.3591.36531.15480.93330.72870.60440.62850.6762
DEPI 0.90570.85940.81670.99051.00851.06040.84880.72410.65940.6426
SGAI 1.18591.23211.00330.72810.77670.77331.02141.4441.12781.1846
LVGI 0.87470.92870.88191.02780.92040.92851.29541.27671.64791.849
TATA -0.1578-0.1204-0.1735-0.1593-0.1684-0.1788-0.1764-0.1766-0.2093-0.2354
M-score -3.20-3.12-3.20-3.04-3.30-3.37-3.48-3.57-4.20-4.39
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