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Denbury Resources Inc (NYSE:DNR)
Beneish M-Score
-2.97 (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 -2.97 suggests that the company is not a manipulator.

DNR' s 10-Year Beneish M-Score Range
Min: -4.16   Max: 1.2
Current: -2.97

-4.16
1.2

During the past 13 years, the highest Beneish M-Score of Denbury Resources Inc was 1.20. The lowest was -4.16. And the median was -2.62.


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 * 0.9396+0.528 * 0.9073+0.404 * 0.9563+0.892 * 1.0093+0.115 * 0.8854
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3451+4.679 * -0.0625-0.327 * 1.0251
=-2.97

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $347 Mil.
Revenue was 637.657 + 672.12 + 641.744 + 599.122 = $2,551 Mil.
Gross Profit was 415.731 + 434.281 + 466.16 + 590.353 = $1,907 Mil.
Total Current Assets was $416 Mil.
Total Assets was $12,140 Mil.
Property, Plant and Equipment(Net PPE) was $10,197 Mil.
Depreciation, Depletion and Amortization(DDA) was $580 Mil.
Selling, General & Admin. Expense(SGA) was $240 Mil.
Total Current Liabilities was $559 Mil.
Long-Term Debt was $3,560 Mil.
Net Income was 268.748 + -55.2 + 58.31 + 89.992 = $362 Mil.
Non Operating Income was 252.265 + -288.679 + -76.669 + -0.1 = $-113 Mil.
Cash Flow from Operations was 340.392 + 329.847 + 214.858 + 348.986 = $1,234 Mil.
Accounts Receivable was $366 Mil.
Revenue was 684.835 + 650.084 + 583.086 + 609.204 = $2,527 Mil.
Gross Profit was 437.35 + 367.835 + 438.822 + 469.805 = $1,714 Mil.
Total Current Assets was $440 Mil.
Total Assets was $11,610 Mil.
Property, Plant and Equipment(Net PPE) was $9,643 Mil.
Depreciation, Depletion and Amortization(DDA) was $483 Mil.
Selling, General & Admin. Expense(SGA) was $177 Mil.
Total Current Liabilities was $604 Mil.
Long-Term Debt was $3,239 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)
=(346.868 / 2550.643) / (365.776 / 2527.209)
=0.13599238 / 0.14473516
=0.9396

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)
=(434.281 / 2527.209) / (415.731 / 2550.643)
=0.67814415 / 0.74746838
=0.9073

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 - (416.486 + 10196.682) / 12140.053) / (1 - (439.794 + 9642.947) / 11609.645)
=0.12577252 / 0.1315203
=0.9563

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
=2550.643 / 2527.209
=1.0093

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))
=(482.819 / (482.819 + 9642.947)) / (580.397 / (580.397 + 10196.682))
=0.04768222 / 0.05385476
=0.8854

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)
=(239.93 / 2550.643) / (176.735 / 2527.209)
=0.09406648 / 0.06993288
=1.3451

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)
=((3560.214 + 558.851) / 12140.053) / ((3238.969 + 603.748) / 11609.645)
=0.33929547 / 0.3309935
=1.0251

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
=(361.85 - -113.183 - 1234.083) / 12140.053
=-0.0625

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 -2.97 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 0.62331.69460.68635.10170.63971.95160.82881.13130.51831.0103
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 -3.18-1.75-3.051.21-3.01-2.12-1.32-2.47-3.40-2.72

Denbury Resources Inc Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.90640.89350.51830.76760.81730.81091.01030.97780.94540.9396
GMI 0.93320.92310.92650.91391.0181.10421.04441.07230.96320.9073
AQI 0.95310.93350.93320.94590.90090.90410.9470.94180.93110.9563
SGI 1.16151.11461.06370.98121.00091.02541.02471.07571.06351.0093
DEPI 1.09080.96190.82191.00111.0181.10651.20130.99320.94210.8854
SGAI 1.64122.78851.34991.54421.24780.94561.07531.01991.13651.3451
LVGI 1.0721.07811.02131.04780.99910.99850.99951.0341.09111.0251
TATA -0.0944-0.084-0.0764-0.0768-0.0744-0.0716-0.0717-0.0676-0.0464-0.0625
M-score -3.04-3.27-3.38-3.25-3.07-2.93-2.77-2.75-2.80-2.97
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