Switch to:
Carrizo Oil & Gas Inc (NAS:CRZO)
Beneish M-Score
-4.31 (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 -4.31 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: -4.31

-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 -2.76.


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 * 1.0897+0.528 * 1.1416+0.404 * 0.2665+0.892 * 0.6285+0.115 * 0.6594
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1278+4.679 * -0.2324-0.327 * 1.6479
=-4.31

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $56.6 Mil.
Revenue was 81.262 + 99.422 + 106.237 + 123.494 = $410.4 Mil.
Gross Profit was 52.086 + 70.061 + 77.504 + 93.365 = $293.0 Mil.
Total Current Assets was $158.6 Mil.
Total Assets was $1,650.9 Mil.
Property, Plant and Equipment(Net PPE) was $1,483.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $285.7 Mil.
Selling, General & Admin. Expense(SGA) was $57.0 Mil.
Total Current Liabilities was $191.6 Mil.
Long-Term Debt was $1,267.2 Mil.
Net Income was -311.395 + -380.165 + -707.647 + -46.132 = $-1,445.3 Mil.
Non Operating Income was -263.767 + -355.437 + -787.516 + -12.876 = $-1,419.6 Mil.
Cash Flow from Operations was 53.868 + 94.395 + 118.54 + 91.166 = $358.0 Mil.
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.



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)
=(56.557 / 410.415) / (82.585 / 653.025)
=0.13780442 / 0.1264653
=1.0897

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)
=(532.231 / 653.025) / (293.016 / 410.415)
=0.81502393 / 0.71395051
=1.1416

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 - (158.555 + 1483.588) / 1650.932) / (1 - (249.429 + 2740.852) / 3051.231)
=0.00532366 / 0.01997554
=0.2665

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
=410.415 / 653.025
=0.6285

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))
=(326.66 / (326.66 + 2740.852)) / (285.741 / (285.741 + 1483.588))
=0.10649021 / 0.16149682
=0.6594

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)
=(56.95 / 410.415) / (80.345 / 653.025)
=0.13876198 / 0.12303511
=1.1278

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)
=((1267.151 + 191.626) / 1650.932) / ((1251.587 + 384.484) / 3051.231)
=0.88360817 / 0.53620031
=1.6479

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
=(-1445.339 - -1419.596 - 357.969) / 1650.932
=-0.2324

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 -4.31 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 0.97910.67320.47171.8891.18421.22311.13090.69760.61220.9742
GMI 1.08050.99751.01151.10070.94020.94370.95620.99521.01551.1576
AQI 0.72591.70420.93954.05980.80841.23680.91450.1751.41661.5561
SGI 1.06131.51651.72250.52651.22251.44961.82121.41281.36530.6044
DEPI 0.97551.07371.09020.84311.44970.71530.63720.94080.98860.7241
SGAI 1.28310.80950.71912.46850.96480.80270.64011.12610.72811.444
LVGI 0.96110.97881.13381.26950.84721.08711.04510.86181.02781.2767
TATA -0.1491-0.1108-0.1852-0.4375-0.0887-0.1075-0.1212-0.1445-0.1593-0.1766
M-score -3.25-2.51-3.19-3.20-2.53-2.34-2.25-3.39-3.04-3.57

Carrizo Oil & Gas Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.69760.67770.80790.72440.61220.57790.64680.69530.97421.0897
GMI 0.99520.99840.99921.00331.01551.05581.09171.13171.15761.1416
AQI 0.1750.85940.46531.01911.41661.31231.53241.97421.55610.2665
SGI 1.41281.4161.3891.3591.36531.15480.93330.72870.60440.6285
DEPI 0.94080.90570.85940.81670.99051.00851.06040.84880.72410.6594
SGAI 1.12611.18591.23211.00330.72810.77670.77331.02141.4441.1278
LVGI 0.86180.87470.92870.88191.02780.92040.92851.29541.27671.6479
TATA -0.1504-0.1578-0.1204-0.1735-0.1593-0.1684-0.1912-0.1928-0.1954-0.2324
M-score -3.41-3.20-3.12-3.20-3.04-3.30-3.43-3.56-3.66-4.31
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)
FEEDBACK