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Denbury Resources Inc (NYSE:DNR)
Beneish M-Score
-2.72 (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 -2.72 suggests that the company is not a manipulator.

DNR' s 10-Year Beneish M-Score Range
Min: -4.16   Max: 0.02
Current: -2.72

-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 * 0.9778+0.528 * 1.1028+0.404 * 0.9418+0.892 * 1.0757+0.115 * 0.9932
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.96+4.679 * -0.0676-0.327 * 1.034
=-2.72

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
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.
Net Income was 58.31 + 89.992 + 102.054 + 129.98 = $380 Mil.
Non Operating Income was -76.669 + -0.1 + -81.92 + 34.362 = $-124 Mil.
Cash Flow from Operations was 214.858 + 348.986 + 305.465 + 437.568 = $1,307 Mil.
Accounts Receivable was $342 Mil.
Revenue was 583.086 + 609.204 + 600.371 + 601.781 = $2,394 Mil.
Gross Profit was 438.822 + 469.805 + 469.886 + 477.27 = $1,856 Mil.
Total Current Assets was $500 Mil.
Total Assets was $11,317 Mil.
Property, Plant and Equipment(Net PPE) was $9,286 Mil.
Depreciation, Depletion and Amortization(DDA) was $500 Mil.
Selling, General & Admin. Expense(SGA) was $210 Mil.
Total Current Liabilities was $560 Mil.
Long-Term Debt was $3,262 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)
=(359.648 / 2575.785) / (341.911 / 2394.442)
=0.13962656 / 0.1427936
=0.9778

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)
=(410.615 / 2394.442) / (466.16 / 2575.785)
=0.77503777 / 0.70276401
=1.1028

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 - (423.584 + 9931.977) / 11867.958) / (1 - (499.846 + 9285.701) / 11316.765)
=0.12743532 / 0.13530527
=0.9418

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
=2575.785 / 2394.442
=1.0757

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))
=(499.541 / (499.541 + 9285.701)) / (538.175 / (538.175 + 9931.977))
=0.05105045 / 0.05140088
=0.9932

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)
=(216.445 / 2575.785) / (209.592 / 2394.442)
=0.08403069 / 0.08753271
=0.96

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)
=((3512.041 + 633.264) / 11867.958) / ((3262.499 + 560.261) / 11316.765)
=0.34928545 / 0.33779618
=1.034

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
=(380.336 - -124.327 - 1306.877) / 11867.958
=-0.0676

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 -2.72 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.13130.92370.90640.89350.68610.76760.81730.81090.99120.9778
GMI 0.95920.93960.93320.92310.92650.91390.98331.02741.07461.1028
AQI 0.90550.89160.95310.93350.93320.94590.90090.90410.9470.9418
SGI 1.20171.22191.16151.11461.06370.98121.00091.02541.02471.0757
DEPI 1.24621.18361.09080.96190.82191.00111.0181.10651.20130.9932
SGAI 1.5691.34251.64122.78851.34991.54421.35511.12751.00960.96
LVGI 0.98980.98471.0721.07811.02131.04780.99910.99850.99951.034
TATA -0.0845-0.0621-0.0944-0.084-0.0764-0.0768-0.0744-0.0716-0.0717-0.0676
M-score -2.70-2.75-3.04-3.27-3.22-3.25-3.10-3.00-2.76-2.72
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