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Statoil ASA (FRA:DNQA)
Beneish M-Score
-3.05 (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.

Statoil ASA has a M-score of -3.06 suggests that the company is not a manipulator.

FRA:DNQA' s 10-Year Beneish M-Score Range
Min: -3.34   Max: -2.19
Current: -3.05

-3.34
-2.19

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.19. The lowest was -3.34. And the median was -2.69.


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 Statoil ASA 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 * 1.2518+0.528 * 0.9683+0.404 * 0.8336+0.892 * 0.9083+0.115 * 0.9959
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0224+4.679 * -0.0736-0.327 * 1.8943
=-3.06

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was €9,863 Mil.
Revenue was 17824.6646341 + 17464.108272 + 21227.1617327 + 18772.8659526 = €75,289 Mil.
Gross Profit was 6591.03658537 + 6890.27616467 + 8815.38718849 + 8385.84875041 = €30,683 Mil.
Total Current Assets was €28,012 Mil.
Total Assets was €111,061 Mil.
Property, Plant and Equipment(Net PPE) was €64,371 Mil.
Depreciation, Depletion and Amortization(DDA) was €10,048 Mil.
Selling, General & Admin. Expense(SGA) was €958 Mil.
Total Current Liabilities was €22,106 Mil.
Long-Term Debt was €19,352 Mil.
Net Income was -565.289634146 + 1430.50716221 + 2869.84445559 + 1762.9341123 = €5,498 Mil.
Non Operating Income was 84.1920731707 + 190.734288295 + 230.071918381 + -524.1155469 = €-19 Mil.
Cash Flow from Operations was 3139.16158537 + 2157.68163634 + 6659.97658471 + 1739.11067835 = €13,696 Mil.
Accounts Receivable was €8,674 Mil.
Revenue was 20921.7347453 + 18805.1784232 + 21405.5747325 + 21760.7120721 = €82,893 Mil.
Gross Profit was 8649.62178517 + 7215.2033195 + 7611.75353814 + 9233.06954955 = €32,710 Mil.
Total Current Assets was €24,150 Mil.
Total Assets was €102,415 Mil.
Property, Plant and Equipment(Net PPE) was €57,603 Mil.
Depreciation, Depletion and Amortization(DDA) was €8,948 Mil.
Selling, General & Admin. Expense(SGA) was €1,032 Mil.
Total Current Liabilities was €20,182 Mil.
Long-Term Debt was €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)
=(9862.5 / 75288.8005915) / (8674.26458228 / 82893.1999731)
=0.13099558 / 0.10464386
=1.2518

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)
=(6890.27616467 / 82893.1999731) / (6591.03658537 / 75288.8005915)
=0.3945999 / 0.40753138
=0.9683

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 - (28011.9054878 + 64370.8536585) / 111061.371951) / (1 - (24149.9411666 + 57602.5382417) / 102415.464784)
=0.1681828 / 0.2017565
=0.8336

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
=75288.8005915 / 82893.1999731
=0.9083

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))
=(8948.33334361 / (8948.33334361 + 57602.5382417)) / (10047.5039778 / (10047.5039778 + 64370.8536585))
=0.13445854 / 0.13501378
=0.9959

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)
=(958.406082669 / 75288.8005915) / (1032.063752 / 82893.1999731)
=0.01272973 / 0.01245052
=1.0224

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)
=((19352.1493902 + 22106.4329268) / 111061.371951) / ((0 + 20182.4508321) / 102415.464784)
=0.37329435 / 0.19706449
=1.8943

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
=(5497.99609596 - -19.1172670534 - 13695.9304848) / 111061.371951
=-0.0736

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.

Statoil ASA has a M-score of -3.06 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.

Statoil ASA Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.85611.06380.88041.22290.78441.35891.13610.89720.59271.3319
GMI 1.05380.96720.89870.90911.00931.19050.9860.93621.05711.0242
AQI 0.75230.87710.85341.70271.15481.0461.21030.93340.97610.8699
SGI 1.29191.30141.05171.28281.0830.79681.19021.29211.12130.7746
DEPI 1.11260.98381.1070.75921.07440.84251.07871.13410.9240.9363
SGAI 0.79320.88241.13971.28960.75220.20690.94350.9420.77860.9407
LVGI 0.91341.03560.88690.78151.38410.99620.9941.00260.91670.5589
TATA -0.0659-0.0992-0.0836-0.1262-0.0532-0.1007-0.0636-0.0469-0.0773-0.0498
M-score -2.66-2.68-3.02-2.38-2.86-2.56-2.38-2.57-3.03-2.50

Statoil ASA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.91540.86710.59230.83511.21911.05711.25261.03650.85021.2518
GMI 1.05761.06591.05681.05751.08131.05541.02720.9610.92340.9683
AQI 1.30611.21430.97610.98850.98280.97920.86990.84280.81950.8336
SGI 1.30611.22441.12210.99730.86120.83660.82360.8610.92780.9083
DEPI 0.97130.98640.92310.98361.00240.87820.89160.91170.91330.9959
SGAI 1.01550.92310.77870.70290.6960.74850.92361.04591.06061.0224
LVGI 0.91250.89010.91670.55690.580.57120.55891.74831.77421.8943
TATA -0.0413-0.0518-0.0753-0.1023-0.0991-0.1004-0.0543-0.0575-0.0707-0.0736
M-score -2.30-2.48-3.02-2.89-2.64-2.85-2.55-3.19-3.40-3.06
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