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Denbury Resources Inc (NYSE:DNR)
Beneish M-Score
-3.98 (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 -3.98 suggests that the company is not a manipulator.

DNR' s 10-Year Beneish M-Score Range
Min: -4.16   Max: 1.2
Current: -3.98

-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 -2.59.


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 * 0.8439+0.528 * 1.111+0.404 * 1.1204+0.892 * 0.6951+0.115 * 0.7928
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5079+4.679 * -0.2297-0.327 * 1.0157
=-3.98

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $207 Mil.
Revenue was 376.694 + 307.649 + 483.684 + 637.657 = $1,806 Mil.
Gross Profit was 229.364 + 127.254 + 274.903 + 415.731 = $1,047 Mil.
Total Current Assets was $558 Mil.
Total Assets was $10,495 Mil.
Property, Plant and Equipment(Net PPE) was $8,462 Mil.
Depreciation, Depletion and Amortization(DDA) was $602 Mil.
Selling, General & Admin. Expense(SGA) was $160 Mil.
Total Current Liabilities was $383 Mil.
Long-Term Debt was $3,471 Mil.
Net Income was -1148.499 + -107.746 + 363.633 + 268.748 = $-624 Mil.
Non Operating Income was -48.926 + -63.124 + 541.614 + 252.265 = $682 Mil.
Cash Flow from Operations was 288.957 + 137.764 + 337.728 + 340.392 = $1,105 Mil.
Accounts Receivable was $353 Mil.
Revenue was 672.12 + 641.744 + 599.122 + 684.835 = $2,598 Mil.
Gross Profit was 485.131 + 403.429 + 347.96 + 437.35 = $1,674 Mil.
Total Current Assets was $423 Mil.
Total Assets was $12,000 Mil.
Property, Plant and Equipment(Net PPE) was $10,071 Mil.
Depreciation, Depletion and Amortization(DDA) was $559 Mil.
Selling, General & Admin. Expense(SGA) was $153 Mil.
Total Current Liabilities was $736 Mil.
Long-Term Debt was $3,602 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)
=(207.233 / 1805.684) / (353.284 / 2597.821)
=0.11476704 / 0.13599243
=0.8439

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)
=(127.254 / 2597.821) / (229.364 / 1805.684)
=0.64433616 / 0.57997523
=1.111

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 - (558.382 + 8461.793) / 10495.303) / (1 - (422.973 + 10071.423) / 11999.677)
=0.14055125 / 0.12544346
=1.1204

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
=1805.684 / 2597.821
=0.6951

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))
=(559.432 / (559.432 + 10071.423)) / (601.576 / (601.576 + 8461.793))
=0.05262342 / 0.06637444
=0.7928

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)
=(159.925 / 1805.684) / (152.585 / 2597.821)
=0.08856755 / 0.05873576
=1.5079

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)
=((3471.141 + 382.641) / 10495.303) / ((3602.156 + 736.028) / 11999.677)
=0.36719111 / 0.36152506
=1.0157

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
=(-623.864 - 681.829 - 1104.841) / 10495.303
=-0.2297

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 -3.98 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 1.69460.68635.10170.63971.95160.82881.13130.51831.21750.7436
GMI 0.96331.04461.07540.97641.23850.86550.95920.90021.27680.9775
AQI 1.46341.08221.3860.96481.51932.2140.90550.93320.9470.9505
SGI 1.46411.30611.32881.40350.65112.16141.20171.06371.02470.9675
DEPI 1.40891.07290.98121.11.13770.99851.24620.82191.20130.9084
SGAI 0.90831.1541.18221.15021.5810.58480.81961.42280.66991.1271
LVGI 1.13340.9421.02121.0121.15010.83250.98981.02130.99950.9827
TATA -0.11-0.1305-0.114-0.1091-0.0865-0.0569-0.0629-0.0764-0.0717-0.0798
M-score -1.75-3.051.21-3.01-2.12-1.32-2.47-3.40-2.39-3.18

Denbury Resources Inc Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.76760.81730.81091.21750.97780.94540.93960.74360.50490.8439
GMI 0.91391.0181.10421.20341.28251.10951.04690.97530.97441.111
AQI 0.94590.90090.90410.9470.94180.93110.95630.95050.95621.1204
SGI 0.98121.00091.02541.02471.07571.06351.00930.96750.81570.6951
DEPI 1.00111.0181.10651.20130.99320.94210.88540.90840.92090.7928
SGAI 1.54421.24780.94560.75360.65210.73630.88011.05591.34191.5079
LVGI 1.04780.99910.99850.99951.0341.09111.02510.98270.91341.0157
TATA -0.0768-0.0744-0.0716-0.0717-0.0676-0.0464-0.0625-0.0798-0.0897-0.2297
M-score -3.25-3.07-2.93-2.44-2.58-2.65-2.81-3.17-3.59-3.98
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