EP has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of El Paso Corporation was 0.00. The lowest was 0.00. And the median was 0.00.
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 El Paso Corporation 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 * 0.6969||+||0.528 * 0.9857||+||0.404 * 1.3841||+||0.892 * 1.2205||+||0.115 * 0.7374|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 7.6234||+||4.679 * -0.0852||-||0.327 * 0.9664|
|This Year (Mar12) TTM:||Last Year (Mar11) TTM:|
|Accounts Receivable was $313.00 Mil.|
Revenue was 1260 + 1232 + 1403 + 1236 = $5,131.00 Mil.
Gross Profit was 1206 + 1186 + 1359 + 1192 = $4,943.00 Mil.
Total Current Assets was $1,615.00 Mil.
Total Assets was $24,378.00 Mil.
Property, Plant and Equipment(Net PPE) was $19,271.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,192.00 Mil.
Selling, General & Admin. Expense(SGA) was $214.00 Mil.
Total Current Liabilities was $1,936.00 Mil.
Long-Term Debt was $12,620.00 Mil.
Net Income was 86 + 185 + -368 + 262 = $165.00 Mil.
Non Operating Income was 51 + 78 + -60 + 87 = $156.00 Mil.
Cash Flow from Operations was 516 + 484 + 621 + 465 = $2,086.00 Mil.
|Accounts Receivable was $368.00 Mil.
Revenue was 989 + 984 + 1213 + 1018 = $4,204.00 Mil.
Gross Profit was 942 + 929 + 1156 + 965 = $3,992.00 Mil.
Total Current Assets was $1,391.00 Mil.
Total Assets was $25,857.00 Mil.
Property, Plant and Equipment(Net PPE) was $21,790.00 Mil.
Depreciation, Depletion and Amortization(DDA) was $978.00 Mil.
Selling, General & Admin. Expense(SGA) was $23.00 Mil.
Total Current Liabilities was $2,410.00 Mil.
Long-Term Debt was $13,566.00 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(313 / 5131)||/||(368 / 4204)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(3992 / 4204)||/||(4943 / 5131)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1615 + 19271) / 24378)||/||(1 - (1391 + 21790) / 25857)|
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.
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))|
|=||(978 / (978 + 21790))||/||(1192 / (1192 + 19271))|
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)|
|=||(214 / 5131)||/||(23 / 4204)|
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)|
|=||((12620 + 1936) / 24378)||/||((13566 + 2410) / 25857)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(165 - 156||-||2086)||/||24378|
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.
El Paso Corporation has a M-score of -3.97 suggests that the company will not be a manipulator.
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
El Paso Corporation Annual Data
El Paso Corporation Quarterly Data