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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: -3.22   Max: 0.02
Current: -2.74

-3.22
0.02

During the past 13 years, the highest Beneish M-Score of Denbury Resources Inc was 0.02. The lowest was -3.22. And the median was -2.72.


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 * 0.9912+0.528 * 1.1018+0.404 * 0.947+0.892 * 1.0247+0.115 * 1.2013
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9801+4.679 * -0.0717-0.327 * 0.9995
=-2.74

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $340 Mil.
Revenue was 599.122 + 684.835 + 650.084 + 583.086 = $2,517 Mil.
Gross Profit was 410.615 + 503.868 + 429.526 + 394.737 = $1,739 Mil.
Total Current Assets was $415 Mil.
Total Assets was $11,789 Mil.
Property, Plant and Equipment(Net PPE) was $9,851 Mil.
Depreciation, Depletion and Amortization(DDA) was $510 Mil.
Selling, General & Admin. Expense(SGA) was $202 Mil.
Total Current Liabilities was $675 Mil.
Long-Term Debt was $3,261 Mil.
Net Income was 89.992 + 102.054 + 129.98 + 87.571 = $410 Mil.
Non Operating Income was -0.1 + -81.92 + 34.362 + -58.259 = $-106 Mil.
Cash Flow from Operations was 348.986 + 305.465 + 437.568 + 269.176 = $1,361 Mil.
Accounts Receivable was $335 Mil.
Revenue was 609.204 + 600.371 + 601.781 + 645.116 = $2,456 Mil.
Gross Profit was 469.805 + 469.886 + 477.27 + 452.628 = $1,870 Mil.
Total Current Assets was $1,543 Mil.
Total Assets was $11,139 Mil.
Property, Plant and Equipment(Net PPE) was $8,077 Mil.
Depreciation, Depletion and Amortization(DDA) was $508 Mil.
Selling, General & Admin. Expense(SGA) was $201 Mil.
Total Current Liabilities was $616 Mil.
Long-Term Debt was $3,104 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)
=(340.342 / 2517.127) / (335.102 / 2456.472)
=0.1352105 / 0.13641597
=0.9912

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)
=(503.868 / 2456.472) / (410.615 / 2517.127)
=0.76108704 / 0.6907661
=1.1018

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 - (414.559 + 9851.278) / 11788.737) / (1 - (1542.754 + 8077.11) / 11139.342)
=0.12918263 / 0.13640644
=0.947

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
=2517.127 / 2456.472
=1.0247

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))
=(507.538 / (507.538 + 8077.11)) / (509.943 / (509.943 + 9851.278))
=0.05912159 / 0.0492165
=1.2013

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)
=(201.577 / 2517.127) / (200.719 / 2456.472)
=0.08008217 / 0.08171027
=0.9801

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)
=((3260.625 + 675.199) / 11788.737) / ((3104.462 + 616.421) / 11139.342)
=0.33386308 / 0.33403077
=0.9995

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
=(409.597 - -105.917 - 1361.195) / 11788.737
=-0.0717

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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.11431.13130.92370.90640.89350.68610.76760.81730.81090.9912
GMI 0.97850.95920.93960.93320.92310.92650.93611.00781.05261.1018
AQI 1.03510.90550.89160.95310.93350.93320.94590.90090.90410.947
SGI 1.32131.20171.22191.16151.11461.06370.98121.00091.02541.0247
DEPI 0.91281.24621.18361.09080.96190.82191.00111.0181.10651.2013
SGAI 0.2951.5691.34251.64122.78851.34991.49941.31621.0950.9801
LVGI 0.91850.98980.98471.0721.07811.02131.04780.99910.99850.9995
TATA -0.0586-0.0845-0.0621-0.0944-0.084-0.0764-0.0768-0.0744-0.0716-0.0717
M-score -2.22-2.70-2.75-3.04-3.27-3.22-3.23-3.08-2.98-2.74
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