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Denbury Resources Inc (NYSE:DNR)
Beneish M-Score
-2.74 (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 -2.74 suggests that the company is not a manipulator.

DNR' s 10-Year Beneish M-Score Range
Min: -4.16   Max: 0.02
Current: -2.74

-4.16
0.02

During the past 13 years, the highest Beneish M-Score of Denbury Resources Inc was 0.02. The lowest was -4.16. And the median was -2.65.


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 * 0.9454+0.528 * 1.0233+0.404 * 0.9311+0.892 * 1.0635+0.115 * 0.9421
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9905+4.679 * -0.0464-0.327 * 1.0911
=-2.74

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $353 Mil.
Revenue was 672.12 + 641.744 + 599.122 + 684.835 = $2,598 Mil.
Gross Profit was 434.281 + 466.16 + 410.615 + 503.868 = $1,815 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 $205 Mil.
Total Current Liabilities was $736 Mil.
Long-Term Debt was $3,602 Mil.
Net Income was -55.2 + 58.31 + 89.992 + 102.054 = $195 Mil.
Non Operating Income was -288.679 + -76.669 + -0.1 + -81.92 = $-447 Mil.
Cash Flow from Operations was 329.847 + 214.858 + 348.986 + 305.465 = $1,199 Mil.
Accounts Receivable was $351 Mil.
Revenue was 650.084 + 583.086 + 609.204 + 600.371 = $2,443 Mil.
Gross Profit was 367.835 + 438.822 + 469.805 + 469.886 = $1,746 Mil.
Total Current Assets was $484 Mil.
Total Assets was $11,509 Mil.
Property, Plant and Equipment(Net PPE) was $9,474 Mil.
Depreciation, Depletion and Amortization(DDA) was $494 Mil.
Selling, General & Admin. Expense(SGA) was $195 Mil.
Total Current Liabilities was $614 Mil.
Long-Term Debt was $3,199 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)
=(353.284 / 2597.821) / (351.386 / 2442.745)
=0.13599243 / 0.14384883
=0.9454

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)
=(466.16 / 2442.745) / (434.281 / 2597.821)
=0.71491212 / 0.6986332
=1.0233

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 - (422.973 + 10071.423) / 11999.677) / (1 - (484.058 + 9473.887) / 11508.51)
=0.12544346 / 0.13473204
=0.9311

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
=2597.821 / 2442.745
=1.0635

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))
=(494.159 / (494.159 + 9473.887)) / (559.432 / (559.432 + 10071.423))
=0.04957431 / 0.05262342
=0.9421

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)
=(205.264 / 2597.821) / (194.868 / 2442.745)
=0.07901391 / 0.07977419
=0.9905

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)
=((3602.156 + 736.028) / 11999.677) / ((3198.911 + 614.352) / 11508.51)
=0.36152506 / 0.33134289
=1.0911

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
=(195.156 - -447.368 - 1199.156) / 11999.677
=-0.0464

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 -2.74 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98511.1220.79741.28670.63971.95160.82881.13130.68610.9912
GMI 1.00320.96331.04461.07540.97641.23850.86550.95920.90021.1036
AQI 1.01431.46341.08221.3860.96481.51932.2140.90550.93320.947
SGI 0.97291.46411.30611.32881.40350.65112.16141.20171.06371.0247
DEPI 0.871.40891.07290.98121.11.13770.99851.24620.82191.2013
SGAI 1.45230.90831.1541.18221.15021.5810.58480.81961.42280.9751
LVGI 0.72351.13340.9421.02121.0121.15010.83250.98981.02130.9995
TATA -0.0712-0.11-0.1305-0.114-0.1091-0.0865-0.0569-0.0629-0.0764-0.0717
M-score -2.85-2.28-2.95-2.30-3.01-2.12-1.32-2.47-3.25-2.74

Denbury Resources Inc Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.92370.90640.89350.68610.76760.81730.81090.99120.97780.9454
GMI 0.93960.93320.92310.92650.91391.0181.0631.11311.14181.0233
AQI 0.89160.95310.93350.93320.94590.90090.90410.9470.94180.9311
SGI 1.22191.16151.11461.06370.98121.00091.02541.02471.07571.0635
DEPI 1.18361.09080.96190.82191.00111.0181.10651.20130.99320.9421
SGAI 1.34251.64122.78851.34991.54421.24781.03790.92820.88570.9905
LVGI 0.98471.0721.07811.02131.04780.99910.99850.99951.0341.0911
TATA -0.0621-0.0944-0.084-0.0764-0.0768-0.0744-0.0716-0.0717-0.0676-0.0464
M-score -2.75-3.04-3.27-3.22-3.25-3.07-2.97-2.73-2.69-2.74
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