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VAALCO Energy Inc (NYSE:EGY)
Beneish M-Score
-3.27 (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.

VAALCO Energy Inc has a M-score of -3.27 suggests that the company is not a manipulator.

EGY' s 10-Year Beneish M-Score Range
Min: -7.31   Max: 370.97
Current: -3.27

-7.31
370.97

During the past 13 years, the highest Beneish M-Score of VAALCO Energy Inc was 370.97. The lowest was -7.31. And the median was -2.56.


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 VAALCO Energy 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 * 1.5707+0.528 * 1.2191+0.404 * 7.1251+0.892 * 0.7692+0.115 * 0.6265
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.796+4.679 * -0.6456-0.327 * 2.512
=-3.27

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $49.5 Mil.
Revenue was 18.239 + 23.032 + 24.486 + 52.098 = $117.9 Mil.
Gross Profit was -19.131 + 12.812 + 16.743 + 43.957 = $54.4 Mil.
Total Current Assets was $111.1 Mil.
Total Assets was $240.6 Mil.
Property, Plant and Equipment(Net PPE) was $107.0 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.9 Mil.
Selling, General & Admin. Expense(SGA) was $15.5 Mil.
Total Current Liabilities was $66.8 Mil.
Long-Term Debt was $15.0 Mil.
Net Income was -39.005 + -98.338 + 3.109 + 24.712 = $-109.5 Mil.
Non Operating Income was -0.056 + -0.483 + 0.164 + -0.125 = $-0.5 Mil.
Cash Flow from Operations was -0.601 + -31.364 + 14.194 + 64.102 = $46.3 Mil.
Accounts Receivable was $41.0 Mil.
Revenue was 28.071 + 58.282 + 37.74 + 29.118 = $153.2 Mil.
Gross Profit was 7.098 + 47.17 + 14.094 + 17.823 = $86.2 Mil.
Total Current Assets was $146.3 Mil.
Total Assets was $297.1 Mil.
Property, Plant and Equipment(Net PPE) was $146.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $17.5 Mil.
Selling, General & Admin. Expense(SGA) was $11.2 Mil.
Total Current Liabilities was $40.2 Mil.
Long-Term Debt was $0.0 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)
=(49.492 / 117.855) / (40.963 / 153.211)
=0.41993976 / 0.26736331
=1.5707

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)
=(12.812 / 153.211) / (-19.131 / 117.855)
=0.56252488 / 0.46142293
=1.2191

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 - (111.109 + 107.006) / 240.63) / (1 - (146.324 + 146.836) / 297.061)
=0.09356689 / 0.01313198
=7.1251

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
=117.855 / 153.211
=0.7692

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))
=(17.463 / (17.463 + 146.836)) / (21.861 / (21.861 + 107.006))
=0.10628793 / 0.16964002
=0.6265

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)
=(15.479 / 117.855) / (11.204 / 153.211)
=0.13133936 / 0.07312791
=1.796

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)
=((15 + 66.754) / 240.63) / ((0 + 40.178) / 297.061)
=0.33974982 / 0.13525168
=2.512

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
=(-109.522 - -0.5 - 46.331) / 240.63
=-0.6456

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.

VAALCO Energy Inc has a M-score of -3.27 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.

VAALCO Energy Inc Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.691.30431.41110.41612.4011.19330.14731.23011.35811.6871
GMI 0.9710.9941.12140.84921.10091.03120.92791.29531.01661.0174
AQI 0.87042.56610.86141.01160.91140.14884.77461.02460.15515.7283
SGI 1.50321.15761.27171.35570.68011.16631.56490.9280.86680.7543
DEPI 1.21491.37630.4191.19920.8681.25770.83981.29641.44520.6951
SGAI 1.42340.76452.63610.99371.30710.66260.89921.21851.10221.672
LVGI 0.48191.7730.82691.73370.61430.67410.81451.84340.88431.4467
TATA -0.0698-0.1432-0.1302-0.3049-0.1523-0.0317-0.2063-0.3498-0.1045-0.4027
M-score -2.59-2.27-2.75-4.42-2.11-2.44-2.18-4.08-3.021.71

VAALCO Energy Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.23010.12.8730.78751.358140.93485.53072.75141.68711.5707
GMI 1.29531.38651.56421.93141.01661.08290.83270.60631.01751.2191
AQI 1.02461.08191.06371.07290.1550.29240.27270.249815.72837.1251
SGI 0.9280.92910.7860.78540.86680.78921.07150.99020.75430.7692
DEPI 1.29641.33371.85311.8491.44521.27150.91650.94320.69510.6265
SGAI 1.21881.17661.26081.19271.10211.18930.97541.31551.67191.796
LVGI 1.84341.29961.70261.71030.88430.91731.25891.32541.44672.512
TATA -0.3498-0.2614-0.2227-0.3212-0.1046-0.1066-0.2352-0.1268-0.4027-0.6456
M-score -4.08-4.45-1.84-4.02-3.0233.360.18-2.151.71-3.27
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