Switch to:
Denbury Resources Inc (NYSE:DNR)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

DNR' s Beneish M-Score Range Over the Past 10 Years
Min: -8.75   Max: 1.14
Current: -2.68

-8.75
1.14

During the past 13 years, the highest Beneish M-Score of Denbury Resources Inc was 1.14. The lowest was -8.75. And the median was -2.84.


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 * 1.1982+0.528 * 1.2946+0.404 * 0.2742+0.892 * 0.5164+0.115 * 0.602
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.7679+4.679 * 0.1397-0.327 * 1.8797
=-2.68

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $141 Mil.
Revenue was 269.617 + 303.6 + 376.694 + 307.649 = $1,258 Mil.
Gross Profit was 124.694 + 148.616 + 229.364 + 127.254 = $630 Mil.
Total Current Assets was $345 Mil.
Total Assets was $5,920 Mil.
Property, Plant and Equipment(Net PPE) was $5,376 Mil.
Depreciation, Depletion and Amortization(DDA) was $532 Mil.
Selling, General & Admin. Expense(SGA) was $145 Mil.
Total Current Liabilities was $373 Mil.
Long-Term Debt was $3,278 Mil.
Net Income was -885.077 + -2244.126 + -1148.499 + -107.746 = $-4,385 Mil.
Non Operating Income was -1318.76 + -2934.152 + -1757.377 + -66.331 = $-6,077 Mil.
Cash Flow from Operations was 164.907 + 272.676 + 288.957 + 137.764 = $864 Mil.
Accounts Receivable was $227 Mil.
Revenue was 483.684 + 637.657 + 672.12 + 641.744 = $2,435 Mil.
Gross Profit was 274.903 + 415.731 + 485.131 + 403.429 = $1,579 Mil.
Total Current Assets was $813 Mil.
Total Assets was $12,728 Mil.
Property, Plant and Equipment(Net PPE) was $10,352 Mil.
Depreciation, Depletion and Amortization(DDA) was $593 Mil.
Selling, General & Admin. Expense(SGA) was $158 Mil.
Total Current Liabilities was $640 Mil.
Long-Term Debt was $3,536 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)
=(140.559 / 1257.56) / (227.168 / 2435.205)
=0.11177121 / 0.09328496
=1.1982

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)
=(148.616 / 2435.205) / (124.694 / 1257.56)
=0.64848504 / 0.50091288
=1.2946

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 - (344.708 + 5375.809) / 5919.824) / (1 - (812.68 + 10352.244) / 12727.802)
=0.03366772 / 0.12279245
=0.2742

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
=1257.56 / 2435.205
=0.5164

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))
=(592.972 / (592.972 + 10352.244)) / (531.66 / (531.66 + 5375.809))
=0.05417636 / 0.08999793
=0.602

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)
=(144.564 / 1257.56) / (158.343 / 2435.205)
=0.11495595 / 0.06502245
=1.7679

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)
=((3277.866 + 373.015) / 5919.824) / ((3535.9 + 640.125) / 12727.802)
=0.61672121 / 0.32810261
=1.8797

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
=(-4385.448 - -6076.62 - 864.304) / 5919.824
=0.1397

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 -2.68 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.6875.10210.6391.96640.82261.13130.51831.21750.74361.1982
GMI 1.04491.01211.03711.25650.84920.96361.01220.98151.13091.1569
AQI 1.08221.3860.96481.51932.2140.90550.93320.9470.95050.2742
SGI 1.30471.32861.40510.64622.17771.20171.06371.02470.96750.5164
DEPI 1.07290.96241.12151.13770.99851.24620.82191.20130.90840.602
SGAI 1.15520.85692.02993.90350.19280.81121.0351.29970.77431.7679
LVGI 0.9421.02121.0121.15010.83250.98981.02130.99950.98271.8797
TATA -0.1282-0.1057-0.1181-0.1545-0.0662-0.0616-0.0746-0.0698-0.07840.1397
M-score -3.041.27-3.17-2.82-1.30-2.46-3.27-2.64-3.03-2.75

Denbury Resources Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.81091.21750.97780.94540.93960.74360.50490.84390.79581.1982
GMI 1.39311.05691.12530.9650.90790.97530.97441.1111.22191.2946
AQI 0.90410.9470.94180.93110.95630.95050.95621.12040.22450.2742
SGI 1.02541.02471.07571.06351.00930.96750.81570.69510.5770.5164
DEPI 1.10651.20130.99320.94210.88540.90840.92090.79280.67810.602
SGAI 0.51121.13580.9621.12671.42431.05591.34191.50791.68341.7679
LVGI 0.99850.99951.0341.09111.02510.98270.91341.01571.48961.8797
TATA -0.0694-0.0698-0.0653-0.0443-0.061-0.0784-0.0886-0.06590.00620.1397
M-score -2.69-2.58-2.70-2.79-2.97-3.16-3.59-3.21-3.53-2.68
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)

GuruFocus Premium Plus Membership

FEEDBACK