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Endeavour International Corp (NYSE:END)
Beneish M-Score
-2.17 (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.

Endeavour International Corp has a M-score of -2.17 signals that the company is a manipulator.

END' s 10-Year Beneish M-Score Range
Min: -6.03   Max: 3564.08
Current: -2.17

-6.03
3564.08

During the past 13 years, the highest Beneish M-Score of Endeavour International Corp was 3564.08. The lowest was -6.03. And the median was -2.12.


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 Endeavour International Corp 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 * 2.0455+0.528 * 1.0037+0.404 * 0.9654+0.892 * 0.8029+0.115 * 0.8452
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1129+4.679 * -0.081-0.327 * 1.1386
=-2.17

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $47.0 Mil.
Revenue was 44.857 + 94.163 + 116.926 + 36.901 = $292.8 Mil.
Gross Profit was 38.01 + 66.993 + 83.433 + 20.543 = $209.0 Mil.
Total Current Assets was $233.8 Mil.
Total Assets was $1,555.7 Mil.
Property, Plant and Equipment(Net PPE) was $1,032.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $145.4 Mil.
Selling, General & Admin. Expense(SGA) was $18.9 Mil.
Total Current Liabilities was $313.4 Mil.
Long-Term Debt was $894.1 Mil.
Net Income was -36.673 + -44.87 + -27.662 + -39.885 = $-149.1 Mil.
Non Operating Income was -6.173 + -27 + -15.912 + -19.756 = $-68.8 Mil.
Cash Flow from Operations was 32.381 + 27.549 + 2.661 + -16.824 = $45.8 Mil.
Accounts Receivable was $28.6 Mil.
Revenue was 126.165 + 57.672 + 97.614 + 83.275 = $364.7 Mil.
Gross Profit was 88.062 + 40.182 + 73.691 + 59.302 = $261.2 Mil.
Total Current Assets was $193.3 Mil.
Total Assets was $1,546.5 Mil.
Property, Plant and Equipment(Net PPE) was $1,054.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $122.9 Mil.
Selling, General & Admin. Expense(SGA) was $21.1 Mil.
Total Current Liabilities was $304.4 Mil.
Long-Term Debt was $749.9 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)
=(46.992 / 292.847) / (28.612 / 364.726)
=0.16046605 / 0.07844793
=2.0455

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)
=(66.993 / 364.726) / (38.01 / 292.847)
=0.71625549 / 0.71361154
=1.0037

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 - (233.751 + 1032.281) / 1555.725) / (1 - (193.335 + 1054.834) / 1546.472)
=0.18621093 / 0.1928926
=0.9654

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
=292.847 / 364.726
=0.8029

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))
=(122.901 / (122.901 + 1054.834)) / (145.398 / (145.398 + 1032.281))
=0.1043537 / 0.12346149
=0.8452

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)
=(18.85 / 292.847) / (21.096 / 364.726)
=0.06436808 / 0.05784068
=1.1129

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)
=((894.122 + 313.43) / 1555.725) / ((749.894 + 304.362) / 1546.472)
=0.77619888 / 0.68171684
=1.1386

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
=(-149.09 - -68.841 - 45.767) / 1555.725
=-0.081

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.

Endeavour International Corp has a M-score of -2.17 signals that the company is likely to 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.

Endeavour International Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.02920.10788.9490.18810.61581.81750.47381.27871.45910.9191
GMI 1.7840.6320.96830.9290.94591.13450.90931.11320.96341.0655
AQI 1.50.61332.03150.93371.28020.79970.78630.82640.82760.8848
SGI 135.666710.55311.40033.25260.970.36481.15060.83843.64541.5414
DEPI 2.87510.71262.35480.47020.75432.05281.72671.59620.73940.5285
SGAI 0.04790.11740.85920.27880.82632.91950.94331.15640.3240.5884
LVGI 0.19174.52080.77010.93450.94971.06661.1341.11461.17691.0237
TATA -0.2213-0.2252-0.0275-0.1335-0.1692-0.142-0.0642-0.1081-0.0812-0.0708
M-score 116.972.785.72-1.82-3.55-3.20-3.21-2.88-0.14-2.41

Endeavour International Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 2.31414.09251.07861.45910.51890.13670.65860.91911.11712.0455
GMI 1.060.95390.92920.96340.97991.03341.04341.06551.05161.0037
AQI 0.69430.83410.99360.82761.14180.79640.80010.88480.90150.9654
SGI 0.84870.93572.33.64544.27725.60232.30561.54141.43050.8029
DEPI 1.38051.44060.84130.73940.61610.36060.57410.52850.54070.8452
SGAI 1.16351.01950.40530.3240.2690.20310.46330.58840.60851.1129
LVGI 1.62661.67991.26091.17690.92620.9480.92381.02371.06771.1386
TATA -0.0785-0.1016-0.0866-0.0812-0.1146-0.1153-0.0874-0.0708-0.0598-0.081
M-score -2.05-0.43-1.69-0.14-0.380.31-2.03-2.41-2.29-2.17
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