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Statoil ASA (FRA:DNQA)
Beneish M-Score
-2.87 (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 -2.94 suggests that the company is not a manipulator.

FRA:DNQA' s 10-Year Beneish M-Score Range
Min: -3.01   Max: -2.27
Current: -2.87

-3.01
-2.27

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.27. The lowest was -3.01. And the median was -2.66.


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 * 1.038+0.528 * 0.9656+0.404 * 0.8428+0.892 * 0.8597+0.115 * 0.9111
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8737+4.679 * -0.0589-0.327 * 1.0801
=-2.94

* 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 €9,179 Mil.
Revenue was 21227.1617327 + 18427.4261603 + 20921.7347453 + 18805.1784232 = €79,382 Mil.
Gross Profit was 8815.38718849 + 8219.08471276 + 8649.62178517 + 7215.2033195 = €32,899 Mil.
Total Current Assets was €30,672 Mil.
Total Assets was €109,551 Mil.
Property, Plant and Equipment(Net PPE) was €60,303 Mil.
Depreciation, Depletion and Amortization(DDA) was €9,016 Mil.
Selling, General & Admin. Expense(SGA) was €958 Mil.
Total Current Liabilities was €21,590 Mil.
Long-Term Debt was €18,430 Mil.
Net Income was 2869.84445559 + 1751.02239533 + 1761.95999328 + 545.261410788 = €6,928 Mil.
Non Operating Income was 230.071918381 + -381.1749432 + 12.3213985544 + -874.954356846 = €-1,014 Mil.
Cash Flow from Operations was 6659.97658471 + 1739.11067835 + 4953.20221886 + 1039.80082988 = €14,392 Mil.
Accounts Receivable was €10,286 Mil.
Revenue was 21326.147739 + 21570.8828829 + 22516.7659425 + 26918.7345526 = €92,333 Mil.
Gross Profit was 7638.22920262 + 9240.79279279 + 8536.65031535 + 11534.684462 = €36,950 Mil.
Total Current Assets was €25,099 Mil.
Total Assets was €107,319 Mil.
Property, Plant and Equipment(Net PPE) was €60,629 Mil.
Depreciation, Depletion and Amortization(DDA) was €8,151 Mil.
Selling, General & Admin. Expense(SGA) was €1,276 Mil.
Total Current Liabilities was €22,425 Mil.
Long-Term Debt was €13,873 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)
=(9178.65863857 / 79381.5010616) / (10285.7956507 / 92332.5311171)
=0.11562717 / 0.11139948
=1.038

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)
=(8219.08471276 / 92332.5311171) / (8815.38718849 / 79381.5010616)
=0.40018785 / 0.41444539
=0.9656

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 - (30672.2194347 + 60303.0607125) / 109550.560294) / (1 - (25098.9299275 + 60629.2716603) / 107319.105972)
=0.16955897 / 0.20118416
=0.8428

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
=79381.5010616 / 92332.5311171
=0.8597

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))
=(8151.02797002 / (8151.02797002 + 60629.2716603)) / (9016.49604318 / (9016.49604318 + 60303.0607125))
=0.11850818 / 0.13007146
=0.9111

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)
=(958.445315046 / 79381.5010616) / (1276.01635928 / 92332.5311171)
=0.01207391 / 0.01381979
=0.8737

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)
=((18429.9715672 + 21590.4331828) / 109550.560294) / ((13873.2481878 + 22424.887815) / 107319.105972)
=0.36531447 / 0.33822622
=1.0801

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
=(6928.08825499 - -1013.73598311 - 14392.0903118) / 109550.560294
=-0.0589

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 -2.94 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 0.86961.04970.81741.4690.84741.13071.12621.08150.66181.2563
GMI 1.02850.96130.80741.04311.24630.88551.07350.93621.05511.0272
AQI 0.75230.86431.40011.05321.36320.86820.83851.37470.97620.8699
SGI 1.27171.30231.30951.04591.08080.79831.1911.29141.11920.7726
DEPI 1.11260.97990.59711.4131.07450.84911.07771.12530.92470.9363
SGAI 0.83360.90951.01581.33590.11731.32710.94280.94190.78060.7996
LVGI 0.91341.0220.90261.04491.02511.00231.03240.96440.91660.559
TATA -0.0889-0.0754-0.139-0.1262-0.053-0.0864-0.0649-0.0565-0.0773-0.0513
M-score -2.79-2.59-2.98-2.58-2.37-3.13-2.52-2.26-2.97-2.55

Statoil ASA Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.07391.00310.91590.86730.66160.83751.2231.06081.18241.038
GMI 0.93750.97551.02971.02651.05471.05321.07641.05111.02860.9656
AQI 1.37471.29231.30581.2140.97620.98850.9830.97940.86990.8428
SGI 1.30051.33351.30521.22371.11940.99440.85850.83390.82090.8597
DEPI 1.11711.04080.9090.98640.9240.98571.03210.87820.89160.9111
SGAI 0.94530.93581.01020.92210.780.72030.72280.76970.81180.8737
LVGI 0.96440.96390.55960.57490.91660.90150.94570.88430.5591.0801
TATA -0.0551-0.0857-0.0852-0.0877-0.0757-0.0679-0.0632-0.0654-0.0555-0.0589
M-score -2.25-2.45-2.41-2.56-2.96-2.85-2.59-2.80-2.60-2.94
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