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Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-3.11 (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 -3.11 suggests that the company is not a manipulator.

CRZO' s 10-Year Beneish M-Score Range
Min: -4.97   Max: 1.52
Current: -3.11

-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 * 0.5779+0.528 * 1.0558+0.404 * 1.3123+0.892 * 1.1548+0.115 * 1.0085
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7767+4.679 * -0.128-0.327 * 0.9204
=-3.11

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $82.6 Mil.
Revenue was 100.05 + 163.275 + 196.225 + 193.475 = $653.0 Mil.
Gross Profit was 71.283 + 130.361 + 164.578 + 166.009 = $532.2 Mil.
Total Current Assets was $249.4 Mil.
Total Assets was $3,051.2 Mil.
Property, Plant and Equipment(Net PPE) was $2,740.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $326.7 Mil.
Selling, General & Admin. Expense(SGA) was $80.3 Mil.
Total Current Liabilities was $384.5 Mil.
Long-Term Debt was $1,251.6 Mil.
Net Income was -21.21 + 134.259 + 83.789 + 2.319 = $199.2 Mil.
Non Operating Income was 19.447 + 209.374 + -71.234 + -40.363 = $117.2 Mil.
Cash Flow from Operations was 73.266 + 114.094 + 192.782 + 92.352 = $472.5 Mil.
Accounts Receivable was $123.8 Mil.
Revenue was 157.212 + 129.728 + 144.329 + 134.224 = $565.5 Mil.
Gross Profit was 137.088 + 110.849 + 123.68 + 114.98 = $486.6 Mil.
Total Current Assets was $197.9 Mil.
Total Assets was $2,169.1 Mil.
Property, Plant and Equipment(Net PPE) was $1,938.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $233.2 Mil.
Selling, General & Admin. Expense(SGA) was $89.6 Mil.
Total Current Liabilities was $363.1 Mil.
Long-Term Debt was $900.4 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)
=(82.585 / 653.025) / (123.754 / 565.493)
=0.1264653 / 0.21884267
=0.5779

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)
=(130.361 / 565.493) / (71.283 / 653.025)
=0.8604828 / 0.81502393
=1.0558

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 - (249.429 + 2740.852) / 3051.231) / (1 - (197.853 + 1938.193) / 2169.064)
=0.01997554 / 0.01522223
=1.3123

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
=653.025 / 565.493
=1.1548

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))
=(233.188 / (233.188 + 1938.193)) / (326.66 / (326.66 + 2740.852))
=0.10739156 / 0.10649021
=1.0085

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)
=(80.345 / 653.025) / (89.58 / 565.493)
=0.12303511 / 0.15841045
=0.7767

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)
=((1251.587 + 384.484) / 3051.231) / ((900.425 + 363.148) / 2169.064)
=0.53620031 / 0.58254298
=0.9204

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
=(199.157 - 117.224 - 472.494) / 3051.231
=-0.128

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 -3.11 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.13091.02170.83860.57610.69760.67770.80790.72440.61220.5779
GMI 0.95620.94720.96180.98030.99520.99840.99921.00331.01551.0558
AQI 0.91450.36750.43610.37060.1750.85940.46531.01911.41661.3123
SGI 1.82121.67221.65381.57321.41281.4161.3891.3591.36531.1548
DEPI 0.63720.64660.82050.90750.93890.90410.85780.81530.99051.0085
SGAI 0.64390.72790.82040.82461.12611.18591.23211.00330.72810.7767
LVGI 1.04510.97770.97320.93880.86180.87470.92870.88191.02780.9204
TATA -0.1212-0.1037-0.1199-0.1655-0.1336-0.1414-0.1052-0.067-0.118-0.128
M-score -2.25-2.62-2.84-3.36-3.33-3.13-3.05-2.70-2.85-3.11
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