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Denbury Resources Inc (NYSE:DNR)
Beneish M-Score
-3.41 (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.

Denbury Resources Inc has a M-score of -3.41 suggests that the company is not a manipulator.

DNR' s 10-Year Beneish M-Score Range
Min: -4.16   Max: 1.2
Current: -3.41

-4.16
1.2

During the past 13 years, the highest Beneish M-Score of Denbury Resources Inc was 1.20. The lowest was -4.16. And the median was -2.71.


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 Denbury Resources 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 * 0.5049+0.528 * 1.1792+0.404 * 0.9562+0.892 * 0.8157+0.115 * 0.9209
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9115+4.679 * -0.0897-0.327 * 0.9134
=-3.41

* 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 $148 Mil.
Revenue was 307.649 + 483.684 + 637.657 + 672.12 = $2,101 Mil.
Gross Profit was 127.254 + 274.903 + 415.731 + 434.281 = $1,252 Mil.
Total Current Assets was $769 Mil.
Total Assets was $12,468 Mil.
Property, Plant and Equipment(Net PPE) was $10,180 Mil.
Depreciation, Depletion and Amortization(DDA) was $602 Mil.
Selling, General & Admin. Expense(SGA) was $161 Mil.
Total Current Liabilities was $382 Mil.
Long-Term Debt was $3,596 Mil.
Net Income was -107.746 + 363.633 + 268.748 + -55.2 = $469 Mil.
Non Operating Income was -63.124 + 541.614 + 252.265 + -288.679 = $442 Mil.
Cash Flow from Operations was 137.764 + 337.728 + 340.392 + 329.847 = $1,146 Mil.
Accounts Receivable was $360 Mil.
Revenue was 641.744 + 599.122 + 684.835 + 650.084 = $2,576 Mil.
Gross Profit was 466.16 + 410.615 + 503.868 + 429.526 = $1,810 Mil.
Total Current Assets was $424 Mil.
Total Assets was $11,868 Mil.
Property, Plant and Equipment(Net PPE) was $9,932 Mil.
Depreciation, Depletion and Amortization(DDA) was $538 Mil.
Selling, General & Admin. Expense(SGA) was $216 Mil.
Total Current Liabilities was $633 Mil.
Long-Term Debt was $3,512 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)
=(148.125 / 2101.11) / (359.648 / 2575.785)
=0.07049845 / 0.13962656
=0.5049

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)
=(274.903 / 2575.785) / (127.254 / 2101.11)
=0.70276401 / 0.59595595
=1.1792

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 - (768.654 + 10180.074) / 12468.056) / (1 - (423.584 + 9931.977) / 11867.958)
=0.12185765 / 0.12743532
=0.9562

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
=2101.11 / 2575.785
=0.8157

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))
=(538.175 / (538.175 + 9931.977)) / (601.8 / (601.8 + 10180.074))
=0.05140088 / 0.0558159
=0.9209

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)
=(160.93 / 2101.11) / (216.445 / 2575.785)
=0.07659285 / 0.08403069
=0.9115

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)
=((3596.085 + 381.674) / 12468.056) / ((3512.041 + 633.264) / 11867.958)
=0.31903602 / 0.34928545
=0.9134

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
=(469.435 - 442.076 - 1145.731) / 12468.056
=-0.0897

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.

Denbury Resources Inc has a M-score of -3.41 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.

Denbury Resources Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.69460.68635.10170.63971.96640.82260.72611.0690.76310.8961
GMI 0.96331.04461.07540.97641.25650.84920.96361.01220.98151.1309
AQI 1.46341.08221.3860.96481.51932.2140.90550.93320.9470.9505
SGI 1.46411.30611.32881.40350.64622.17771.20171.06371.02470.9675
DEPI 1.40891.07290.98121.11.13770.99851.24620.82191.20130.9084
SGAI 0.90831.1541.18221.15024.99860.19280.81121.0351.29970.7743
LVGI 1.13340.9421.02121.0121.15010.83250.98981.02130.99950.9827
TATA -0.11-0.1305-0.114-0.1091-0.1434-0.0671-0.0633-0.0764-0.0717-0.0798
M-score -1.75-3.051.21-3.01-2.95-1.30-2.84-2.77-3.07-2.89

Denbury Resources Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.0690.76760.81730.81090.76310.97780.94540.93960.89610.5049
GMI 1.01221.02471.03981.01831.00850.98260.97071.02011.05721.1792
AQI 0.93320.94590.90090.90410.9470.94180.93110.95630.95050.9562
SGI 1.06370.98121.00091.02541.02471.07571.06351.00930.96750.8157
DEPI 0.82191.00111.0181.10651.20130.99320.94210.88540.90840.9209
SGAI 1.06741.2051.25691.24241.23951.24581.09821.00550.8980.9115
LVGI 1.02131.04780.99910.99850.99951.0341.09111.02510.98270.9134
TATA -0.062-0.0546-0.0767-0.0743-0.0717-0.0676-0.0464-0.0625-0.0798-0.0897
M-score -2.71-3.03-3.07-3.04-3.05-2.84-2.79-2.85-2.96-3.41
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