Switch to:

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1356

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1361

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1356

Warning: Division by zero in /home/gurufocu/public_html/term.php on line 1361
VAALCO Energy Inc (NYSE:EGY)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

EGY' s 10-Year Beneish M-Score Range
Min: -7.31   Max: 24.25
Current: -2.71

-7.31
24.25

During the past 13 years, the highest Beneish M-Score of VAALCO Energy Inc was 24.25. The lowest was -7.31. And the median was -2.79.


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 * 1.7315+0.528 * 1.0829+0.404 * 0.2924+0.892 * 0.7892+0.115 * 1.2715
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1893+4.679 * -0.1066-0.327 * 0.9173
=-2.71

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $45.5 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.
Net Income was -7.038 + 26.376 + 2.386 + 7.121 = $28.8 Mil.
Non Operating Income was -0.291 + 0.057 + -0.072 + -0.002 = $-0.3 Mil.
Cash Flow from Operations was -23.542 + 38.596 + 46.35 + -0.576 = $60.8 Mil.
Accounts Receivable was $33.3 Mil.
Revenue was 44.137 + 53.553 + 37.63 + 58.818 = $194.1 Mil.
Gross Profit was 29.647 + 8.832 + 30.99 + 48.797 = $118.3 Mil.
Total Current Assets was $141.3 Mil.
Total Assets was $272.1 Mil.
Property, Plant and Equipment(Net PPE) was $118.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $18.5 Mil.
Selling, General & Admin. Expense(SGA) was $11.9 Mil.
Total Current Liabilities was $40.1 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)
=(45.512 / 153.211) / (33.307 / 194.138)
=0.29705439 / 0.17156353
=1.7315

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)
=(47.17 / 194.138) / (7.098 / 153.211)
=0.60918522 / 0.56252488
=1.0829

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 - (146.324 + 146.836) / 297.061) / (1 - (141.284 + 118.622) / 272.129)
=0.01313198 / 0.0449162
=0.2924

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
=153.211 / 194.138
=0.7892

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))
=(18.536 / (18.536 + 118.622)) / (17.463 / (17.463 + 146.836))
=0.13514341 / 0.10628793
=1.2715

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)
=(11.204 / 153.211) / (11.937 / 194.138)
=0.07312791 / 0.06148719
=1.1893

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)
=((0 + 40.178) / 297.061) / ((0 + 40.125) / 272.129)
=0.13525168 / 0.14744845
=0.9173

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
=(28.845 - -0.308 - 60.828) / 297.061
=-0.1066

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 -2.71 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 8.74010.76861.25821.37060.44952.57151.29580.33480.66341.9104
GMI 0.83280.9710.9941.12140.84921.10091.03120.92791.29531.0166
AQI 0.73570.87042.56610.86141.01160.91140.14884.77461.02460.155
SGI 1.57021.50321.15761.27171.35570.68011.16631.56490.9280.8668
DEPI 1.66231.21491.37630.4191.19920.8681.25770.83981.29641.4452
SGAI 0.3541.42340.76452.63610.99371.30710.66260.89921.21851.1022
LVGI 0.58690.48191.7730.82691.73370.61430.67410.81451.84340.8843
TATA 0.0018-0.0698-0.1432-0.1302-0.3049-0.1523-0.0317-0.2063-0.3498-0.1045
M-score 5.29-2.52-2.31-2.79-4.39-1.96-2.34-2.01-4.60-2.51

VAALCO Energy Inc Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.33480.42850.6950.81870.66341.57811.81240.86331.91041.7315
GMI 0.92790.94650.99090.99521.29531.38651.56421.93141.01661.0829
AQI 4.77464.51824.90860.89321.02461.08191.06371.07290.1550.2924
SGI 1.56491.38161.1881.15840.9280.92910.7860.78540.86680.7892
DEPI 0.83981.07061.08421.10881.29641.33371.85311.8491.44521.2715
SGAI 0.89910.97551.21071.02771.21881.17661.26081.19271.10211.1893
LVGI 0.81451.86740.94561.01691.84341.29961.70261.71030.88430.9173
TATA -0.2063-0.2058-0.1635-0.1779-0.3498-0.2614-0.2227-0.3212-0.1046-0.1066
M-score -2.01-2.51-1.79-3.38-4.60-3.09-2.82-3.95-2.51-2.71
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Email Hide