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Statoil ASA (FRA:DNQA)
Beneish M-Score
-2.81 (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 -2.76 suggests that the company is not a manipulator.

FRA:DNQA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53   Max: -2.23
Current: -2.81

-3.53
-2.23

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.23. The lowest was -3.53. And the median was -2.76.


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 * 1.1279+0.528 * 1.4662+0.404 * 1.1282+0.892 * 0.7173+0.115 * 1.4047
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2358+4.679 * -0.0976-0.327 * 0.9866
=-2.76

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was €5,334 Mil.
Revenue was 10786.7771541 + 9696.51121396 + 9083.15373563 + 12019.645644 = €41,586 Mil.
Gross Profit was 3558.76325403 + 3225.34709861 + 3320.76149425 + 4473.51510144 = €14,578 Mil.
Total Current Assets was €23,659 Mil.
Total Assets was €101,209 Mil.
Property, Plant and Equipment(Net PPE) was €59,172 Mil.
Depreciation, Depletion and Amortization(DDA) was €10,152 Mil.
Selling, General & Admin. Expense(SGA) was €725 Mil.
Total Current Liabilities was €15,399 Mil.
Long-Term Debt was €25,486 Mil.
Net Income was -384.923817161 + -273.228907084 + 545.079022989 + -1033.69136142 = €-1,147 Mil.
Non Operating Income was 80.1924619086 + 79.2096831613 + 747.126436782 + -473.698705591 = €433 Mil.
Cash Flow from Operations was 3259.37806291 + 1018.15592738 + 1980.06465517 + 2036.17001744 = €8,294 Mil.
Accounts Receivable was €6,592 Mil.
Revenue was 11765.2980487 + 15687.5398735 + 13874.6484339 + 16646.4030819 = €57,974 Mil.
Gross Profit was 4005.87899849 + 9265.27666399 + 7985.98909729 + 8541.37226277 = €29,799 Mil.
Total Current Assets was €27,968 Mil.
Total Assets was €103,480 Mil.
Property, Plant and Equipment(Net PPE) was €58,858 Mil.
Depreciation, Depletion and Amortization(DDA) was €15,243 Mil.
Selling, General & Admin. Expense(SGA) was €818 Mil.
Total Current Liabilities was €14,594 Mil.
Long-Term Debt was €27,778 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)
=(5333.68974428 / 41586.0877476) / (6592.35231222 / 57973.8894379)
=0.12825659 / 0.11371244
=1.1279

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)
=(29798.5170225 / 57973.8894379) / (14578.3869483 / 41586.0877476)
=0.51399893 / 0.35055923
=1.4662

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 - (23659.4493451 + 59172.2355876) / 101209.12412) / (1 - (27967.5541299 + 58858.0335026) / 103479.950993)
=0.18157888 / 0.1609429
=1.1282

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
=41586.0877476 / 57973.8894379
=0.7173

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))
=(15243.0285022 / (15243.0285022 + 58858.0335026)) / (10151.5105202 / (10151.5105202 + 59172.2355876))
=0.20570594 / 0.14643627
=1.4047

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)
=(725.236914427 / 41586.0877476) / (818.095371977 / 57973.8894379)
=0.01743941 / 0.01411145
=1.2358

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)
=((25486.0554219 + 15398.7347412) / 101209.12412) / ((27778.2999198 + 14593.5961864) / 103479.950993)
=0.40396348 / 0.40946962
=0.9866

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
=(-1146.76506268 - 432.829876261 - 8293.7686629) / 101209.12412
=-0.0976

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 -2.76 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 local exchange's currency.

Statoil ASA Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.81741.31410.8981.1870.94281.08120.59271.33190.91160.877
GMI 0.80741.04310.96391.24660.77760.98251.05030.96231.00281.3319
AQI 1.40011.05321.36320.8861.21030.93340.97610.86990.95581.0372
SGI 1.30911.04421.05280.79151.23611.25291.1570.77390.8890.7423
DEPI 0.59711.4131.07450.84241.07871.13410.9240.93630.84630.7767
SGAI 1.01581.33590.11731.32680.94350.9420.77860.94070.81221.3251
LVGI 0.90261.04491.02511.00150.9941.00260.91671.11311.03751.0608
TATA -0.1311-0.1239-0.0461-0.1007-0.0636-0.0469-0.0773-0.0498-0.1072-0.142
M-score -2.94-2.71-2.46-2.96-2.63-2.41-3.00-2.72-3.18-3.40

Statoil ASA Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.88811.27651.26581.18831.18470.86060.92450.92590.93291.1279
GMI 0.82310.84441.05791.13611.1711.14731.00421.13171.43261.4662
AQI 0.81950.83360.95580.98980.9610.9571.03721.08421.17021.1282
SGI 0.90470.88110.92270.83430.82070.7760.7290.73630.66460.7173
DEPI 0.96191.00790.82640.6360.60360.65270.77721.36781.45381.4047
SGAI 1.05571.01660.8110.91770.97061.10771.34661.31561.43381.2358
LVGI 1.01751.89431.03751.12541.10311.09691.06070.98561.01260.9866
TATA -0.0697-0.0727-0.117-0.1409-0.1457-0.163-0.1547-0.0998-0.1125-0.0976
M-score -3.18-3.12-2.84-3.11-3.15-3.60-3.60-3.15-3.10-2.76
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