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Denbury Resources Inc (NYSE:DNR)
Beneish M-Score
-2.46 (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 -2.46 suggests that the company is not a manipulator.

DNR' s Beneish M-Score Range Over the Past 10 Years
Min: -9.49   Max: 1.14
Current: -2.46

-9.49
1.14

During the past 13 years, the highest Beneish M-Score of Denbury Resources Inc was 1.14. The lowest was -9.49. 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 * 1.1887+0.528 * 1.3004+0.404 * 0.2427+0.892 * 0.5448+0.115 * 0.6761
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4959+4.679 * 0.1815-0.327 * 2.0073
=-2.46

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $96 Mil.
Revenue was 194.844 + 269.617 + 303.6 + 376.694 = $1,145 Mil.
Gross Profit was 78.596 + 100.543 + 148.616 + 229.364 = $557 Mil.
Total Current Assets was $273 Mil.
Total Assets was $5,539 Mil.
Property, Plant and Equipment(Net PPE) was $5,102 Mil.
Depreciation, Depletion and Amortization(DDA) was $459 Mil.
Selling, General & Admin. Expense(SGA) was $146 Mil.
Total Current Liabilities was $324 Mil.
Long-Term Debt was $3,222 Mil.
Net Income was -185.193 + -885.077 + -2244.126 + -1148.499 = $-4,463 Mil.
Non Operating Income was -186.148 + -1318.76 + -2934.152 + -1757.377 = $-6,196 Mil.
Cash Flow from Operations was 2.029 + 164.907 + 272.676 + 288.957 = $729 Mil.
Accounts Receivable was $148 Mil.
Revenue was 307.649 + 483.684 + 637.657 + 672.12 = $2,101 Mil.
Gross Profit was 153.933 + 274.903 + 415.731 + 485.131 = $1,330 Mil.
Total Current Assets was $769 Mil.
Total Assets was $12,468 Mil.
Property, Plant and Equipment(Net PPE) was $10,180 Mil.
Depreciation, Depletion and Amortization(DDA) was $602 Mil.
Selling, General & Admin. Expense(SGA) was $179 Mil.
Total Current Liabilities was $382 Mil.
Long-Term Debt was $3,596 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)
=(95.934 / 1144.755) / (148.125 / 2101.11)
=0.08380308 / 0.07049845
=1.1887

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)
=(100.543 / 2101.11) / (78.596 / 1144.755)
=0.63285501 / 0.48667095
=1.3004

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 - (272.975 + 5101.797) / 5538.547) / (1 - (768.654 + 10180.074) / 12468.056)
=0.02957003 / 0.12185765
=0.2427

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
=1144.755 / 2101.11
=0.5448

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))
=(601.8 / (601.8 + 10180.074)) / (459.068 / (459.068 + 5101.797))
=0.0558159 / 0.08255334
=0.6761

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)
=(145.773 / 1144.755) / (178.861 / 2101.11)
=0.12733991 / 0.08512691
=1.4959

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)
=((3222.497 + 324.402) / 5538.547) / ((3596.085 + 381.674) / 12468.056)
=0.64040244 / 0.31903602
=2.0073

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
=(-4462.895 - -6196.437 - 728.569) / 5538.547
=0.1815

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 -2.46 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 1.04491.01211.03711.25650.84920.96361.01220.98151.13091.3793
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 -3.041.27-3.17-2.82-1.30-2.46-3.27-2.64-3.03-2.63

Denbury Resources Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.21750.97780.94540.93960.74360.50490.84390.79581.19821.1887
GMI 1.05691.12530.9650.90790.97530.95491.08341.18151.28941.3004
AQI 0.9470.94180.93110.95630.95050.95621.12040.22450.27420.2427
SGI 1.02471.07571.06351.00930.96750.81570.69510.5770.51640.5448
DEPI 1.20130.99320.94210.88540.90840.92090.79280.67810.6020.6761
SGAI 1.13580.9621.12671.42431.05591.49151.6771.88131.98721.4959
LVGI 0.99951.0341.09111.02510.98270.91341.01571.48961.87972.0073
TATA -0.0698-0.0653-0.0443-0.061-0.0784-0.0886-0.06590.00620.13970.1815
M-score -2.58-2.70-2.79-2.97-3.16-3.62-3.26-3.58-2.72-2.46
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