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VAALCO Energy Inc (NYSE:EGY)
Beneish M-Score
-9.86 (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 -9.86 suggests that the company is not a manipulator.

EGY' s Beneish M-Score Range Over the Past 10 Years
Min: -12.56   Max: 675.83
Current: -9.86

-12.56
675.83

During the past 13 years, the highest Beneish M-Score of VAALCO Energy Inc was 675.83. The lowest was -12.56. And the median was -2.60.


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 * 1.2909+0.528 * -0.458+0.404 * 2.9643+0.892 * 0.6986+0.115 * 0.401
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.518+4.679 * -1.4937-0.327 * 1.7961
=-9.86

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $7.36 Mil.
Revenue was 18.847 + 10.976 + 17.523 + 17.546 = $64.89 Mil.
Gross Profit was 11.506 + -0.278 + -42.389 + 9.687 = $-21.47 Mil.
Total Current Assets was $38.64 Mil.
Total Assets was $91.66 Mil.
Property, Plant and Equipment(Net PPE) was $27.08 Mil.
Depreciation, Depletion and Amortization(DDA) was $21.96 Mil.
Selling, General & Admin. Expense(SGA) was $16.09 Mil.
Total Current Liabilities was $46.35 Mil.
Long-Term Debt was $9.34 Mil.
Net Income was -0.261 + -8.063 + -80.779 + -33.668 = $-122.77 Mil.
Non Operating Income was -0.363 + 0.524 + -1.195 + 1.622 = $0.59 Mil.
Cash Flow from Operations was 1.809 + -0.18 + 1.356 + 10.566 = $13.55 Mil.
Accounts Receivable was $8.17 Mil.
Revenue was 27.137 + 18.239 + 23.032 + 24.486 = $92.89 Mil.
Gross Profit was 18.27 + -19.131 + -2.401 + 17.341 = $14.08 Mil.
Total Current Assets was $101.51 Mil.
Total Assets was $234.29 Mil.
Property, Plant and Equipment(Net PPE) was $110.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $24.17 Mil.
Selling, General & Admin. Expense(SGA) was $15.17 Mil.
Total Current Liabilities was $64.27 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)
=(7.363 / 64.892) / (8.165 / 92.894)
=0.11346545 / 0.08789588
=1.2909

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)
=(14.079 / 92.894) / (-21.474 / 64.892)
=0.15155984 / -0.33091907
=-0.458

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 - (38.642 + 27.08) / 91.657) / (1 - (101.509 + 110.414) / 234.287)
=0.28295711 / 0.09545557
=2.9643

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
=64.892 / 92.894
=0.6986

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))
=(24.165 / (24.165 + 110.414)) / (21.962 / (21.962 + 27.08))
=0.17955996 / 0.44782024
=0.401

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)
=(16.091 / 64.892) / (15.174 / 92.894)
=0.24796585 / 0.16334747
=1.518

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)
=((9.344 + 46.354) / 91.657) / ((15 + 64.269) / 234.287)
=0.60767863 / 0.33834144
=1.7961

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
=(-122.771 - 0.588 - 13.551) / 91.657
=-1.4937

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 -9.86 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

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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.08694.17862.75142.7622739.53320.71753.27990.43510.92941.2909
GMI 1.08290.8090.58651.18371.53974.32959.759-1.3006-1.8176-0.458
AQI 0.29240.27270.249815.72837.12517.798711.99461.94722.49212.9643
SGI 0.78921.07150.99020.75430.76920.52720.52750.630.62090.6986
DEPI 1.27150.91650.94320.69510.62650.62130.44430.31510.350.401
SGAI 1.18930.97541.31551.67191.7962.42382.04011.92351.54591.518
LVGI 0.91731.25891.32541.44672.5122.20251.90443.0642.05421.7961
TATA -0.1066-0.2352-0.1268-0.4027-0.6456-0.6372-0.9426-1.6001-1.4431-1.4937
M-score -4.22-1.08-2.162.79675.83-2.323.31-12.56-11.03-9.86
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