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Denbury Resources Inc (NYSE:DNR)
Beneish M-Score
-3.19 (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 -3.19 suggests that the company is not a manipulator.

DNR' s 10-Year Beneish M-Score Range
Min: -3.5   Max: 1.2
Current: -3.19

-3.5
1.2

During the past 13 years, the highest Beneish M-Score of Denbury Resources Inc was 1.20. The lowest was -3.50. And the median was -2.70.


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 * 0.7436+0.528 * 0.968+0.404 * 0.9505+0.892 * 0.9675+0.115 * 0.9084
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1678+4.679 * -0.0798-0.327 * 0.9827
=-3.19

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
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 + 434.281 + 466.16 = $1,591 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 $175 Mil.
Total Current Liabilities was $640 Mil.
Long-Term Debt was $3,536 Mil.
Net Income was 363.633 + 268.748 + -55.2 + 58.31 = $635 Mil.
Non Operating Income was 541.614 + 252.265 + -288.679 + -76.669 = $429 Mil.
Cash Flow from Operations was 337.728 + 340.392 + 329.847 + 214.858 = $1,223 Mil.
Accounts Receivable was $316 Mil.
Revenue was 599.122 + 684.835 + 650.084 + 583.086 = $2,517 Mil.
Gross Profit was 347.96 + 437.35 + 367.835 + 438.822 = $1,592 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 $155 Mil.
Total Current Liabilities was $675 Mil.
Long-Term Debt was $3,261 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)
=(227.168 / 2435.205) / (315.784 / 2517.127)
=0.09328496 / 0.12545414
=0.7436

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)
=(415.731 / 2517.127) / (274.903 / 2435.205)
=0.63245398 / 0.65336389
=0.968

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 - (812.68 + 10352.244) / 12727.802) / (1 - (414.559 + 9851.278) / 11788.737)
=0.12279245 / 0.12918263
=0.9505

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
=2435.205 / 2517.127
=0.9675

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))
=(509.943 / (509.943 + 9851.278)) / (592.972 / (592.972 + 10352.244))
=0.0492165 / 0.05417636
=0.9084

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)
=(175.129 / 2435.205) / (155.007 / 2517.127)
=0.07191551 / 0.06158092
=1.1678

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)
=((3535.9 + 640.125) / 12727.802) / ((3260.625 + 675.199) / 11788.737)
=0.32810261 / 0.33386308
=0.9827

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
=(635.491 - 428.531 - 1222.825) / 12727.802
=-0.0798

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 -3.19 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.89350.51830.76760.81730.81091.21750.97780.94540.93960.7436
GMI 0.92310.92650.91391.0181.10421.20341.23281.10171.03940.968
AQI 0.93350.93320.94590.90090.90410.9470.94180.93110.95630.9505
SGI 1.11461.06370.98121.00091.02541.02471.07571.06351.00930.9675
DEPI 0.96190.82191.00111.0181.10651.20130.99320.94210.88540.9084
SGAI 2.78851.34991.54421.24780.94560.75360.72650.81730.97421.1678
LVGI 1.07811.02131.04780.99910.99850.99951.0341.09111.02510.9827
TATA -0.084-0.0764-0.0768-0.0744-0.0716-0.0717-0.0676-0.0464-0.0625-0.0798
M-score -3.27-3.38-3.25-3.07-2.93-2.44-2.61-2.67-2.83-3.19
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