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VAALCO Energy Inc (NYSE:EGY)
Beneish M-Score
-10.84 (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 -10.84 suggests that the company is not a manipulator.

EGY' s Beneish M-Score Range Over the Past 10 Years
Min: -12.59   Max: 675.83
Current: -10.84

-12.59
675.83

During the past 13 years, the highest Beneish M-Score of VAALCO Energy Inc was 675.83. The lowest was -12.59. And the median was -2.64.


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 * 0.3306+0.528 * -0.1956+0.404 * 1.0617+0.892 * 0.7211+0.115 * 0.6084
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6909+4.679 * -1.3685-0.327 * 1.9926
=-10.84

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $5.94 Mil.
Revenue was 14.635 + 18.847 + 10.976 + 17.523 = $61.98 Mil.
Gross Profit was 7.473 + 11.506 + -0.278 + -42.389 = $-23.69 Mil.
Total Current Assets was $41.55 Mil.
Total Assets was $78.20 Mil.
Property, Plant and Equipment(Net PPE) was $25.58 Mil.
Depreciation, Depletion and Amortization(DDA) was $15.31 Mil.
Selling, General & Admin. Expense(SGA) was $16.92 Mil.
Total Current Liabilities was $50.01 Mil.
Long-Term Debt was $8.13 Mil.
Net Income was -15.599 + -0.261 + -8.063 + -80.779 = $-104.70 Mil.
Non Operating Income was -0.149 + -0.363 + 0.524 + 0.988 = $1.00 Mil.
Cash Flow from Operations was -1.665 + 1.809 + -0.18 + 1.356 = $1.32 Mil.
Accounts Receivable was $24.91 Mil.
Revenue was 17.546 + 27.137 + 18.239 + 23.032 = $85.95 Mil.
Gross Profit was 9.687 + 18.27 + -19.131 + -2.401 = $6.43 Mil.
Total Current Assets was $73.73 Mil.
Total Assets was $195.08 Mil.
Property, Plant and Equipment(Net PPE) was $95.33 Mil.
Depreciation, Depletion and Amortization(DDA) was $28.13 Mil.
Selling, General & Admin. Expense(SGA) was $13.88 Mil.
Total Current Liabilities was $57.79 Mil.
Long-Term Debt was $15.00 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)
=(5.94 / 61.981) / (24.914 / 85.954)
=0.09583582 / 0.28985271
=0.3306

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)
=(6.425 / 85.954) / (-23.688 / 61.981)
=0.07474928 / -0.38218164
=-0.1956

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 - (41.55 + 25.578) / 78.202) / (1 - (73.73 + 95.329) / 195.079)
=0.14160763 / 0.13338186
=1.0617

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
=61.981 / 85.954
=0.7211

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))
=(28.126 / (28.126 + 95.329)) / (15.313 / (15.313 + 25.578))
=0.2278239 / 0.37448338
=0.6084

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)
=(16.919 / 61.981) / (13.876 / 85.954)
=0.27297075 / 0.16143519
=1.6909

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)
=((8.134 + 50.01) / 78.202) / ((15 + 57.79) / 195.079)
=0.7435104 / 0.37313089
=1.9926

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
=(-104.702 - 1 - 1.32) / 78.202
=-1.3685

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 -10.84 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 local exchange's currency.

VAALCO Energy Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.30431.41110.41612.4011.19330.14731.23011.35812.76210.4351
GMI 0.9941.12140.9421.62910.62830.92791.29531.01661.0174-8.3203
AQI 2.56610.86141.01160.91140.14884.77461.02460.15515.72831.9472
SGI 1.15761.27171.35570.68011.16631.56490.9280.86680.75430.63
DEPI 1.37630.4191.19920.8681.25770.83981.29641.44520.69510.3151
SGAI 0.76452.63610.99371.30710.66260.89921.21851.10221.6721.9236
LVGI 1.7730.82691.73370.61430.67410.81451.84340.88431.44673.064
TATA -0.1432-0.1302-0.3049-0.1523-0.0317-0.2063-0.3498-0.1045-0.4027-1.6001
M-score -2.27-2.75-4.37-1.83-2.65-2.18-4.08-3.022.70-16.27

VAALCO Energy Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 4.17862.75142.7622739.53320.71753.27990.43510.92941.29090.3306
GMI 0.8090.58651.18371.53974.32959.759-1.3006-1.8176-0.458-0.1956
AQI 0.27270.249815.72837.12517.798711.99461.94722.49212.96431.0617
SGI 1.07150.99020.75430.76920.52720.52750.630.62090.69860.7211
DEPI 0.91650.94320.69510.62650.62130.44440.31510.350.4010.6084
SGAI 0.97541.31551.67191.7962.42381.88582.03451.64911.61161.6909
LVGI 1.25891.32541.44672.5122.20251.90443.0642.05421.79611.9926
TATA -0.2352-0.1268-0.4027-0.6456-0.6372-0.9323-1.6013-1.4445-1.4955-1.3685
M-score -1.08-2.162.79675.83-2.323.39-12.59-11.06-9.89-10.84
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