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Statoil ASA (FRA:DNQA)
Beneish M-Score
-3.12 (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 -3.20 suggests that the company is not a manipulator.

FRA:DNQA' s 10-Year Beneish M-Score Range
Min: -3.14   Max: -2.27
Current: -3.12

-3.14
-2.27

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.27. The lowest was -3.14. And the median was -2.71.


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 * 0.9062+0.528 * 0.9984+0.404 * 0.9547+0.892 * 0.9216+0.115 * 0.8501
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9503+4.679 * -0.1124-0.327 * 1.0375
=-3.20

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was €6,441 Mil.
Revenue was 17017.4929918 + 18103.6127509 + 17840.7267071 + 21137.7418279 = €74,100 Mil.
Gross Profit was 7043.25839609 + 6694.18339237 + 7038.86691927 + 8778.25216811 = €29,555 Mil.
Total Current Assets was €28,396 Mil.
Total Assets was €109,928 Mil.
Property, Plant and Equipment(Net PPE) was €62,643 Mil.
Depreciation, Depletion and Amortization(DDA) was €11,976 Mil.
Selling, General & Admin. Expense(SGA) was €853 Mil.
Total Current Liabilities was €19,948 Mil.
Long-Term Debt was €22,857 Mil.
Net Income was -991.851261474 + -574.136166863 + 1461.35645383 + 2857.75517011 = €2,753 Mil.
Non Operating Income was -479.209036443 + 85.5096418733 + 194.847527177 + 229.102735157 = €30 Mil.
Cash Flow from Operations was 3053.5645578 + 3188.28807556 + 2204.21265119 + 6631.92128085 = €15,078 Mil.
Accounts Receivable was €7,713 Mil.
Revenue was 18670.6716661 + 21191.9544083 + 19027.3995916 + 21513.4405812 = €80,403 Mil.
Gross Profit was 8259.78154548 + 8750.46932618 + 7301.36147039 + 7705.31049991 = €32,017 Mil.
Total Current Assets was €28,380 Mil.
Total Assets was €105,250 Mil.
Property, Plant and Equipment(Net PPE) was €57,925 Mil.
Depreciation, Depletion and Amortization(DDA) was €9,152 Mil.
Selling, General & Admin. Expense(SGA) was €974 Mil.
Total Current Liabilities was €19,835 Mil.
Long-Term Debt was €19,669 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)
=(6441.46100148 / 74099.5742777) / (7713.09096837 / 80403.4662472)
=0.0869298 / 0.09592983
=0.9062

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)
=(6694.18339237 / 80403.4662472) / (7043.25839609 / 74099.5742777)
=0.39820327 / 0.39884927
=0.9984

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 - (28395.9215083 + 62642.6510196) / 109928.324081) / (1 - (28380.3716987 + 57925.4320183) / 105249.820672)
=0.17183698 / 0.17999097
=0.9547

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
=74099.5742777 / 80403.4662472
=0.9216

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))
=(9151.7217753 / (9151.7217753 + 57925.4320183)) / (11975.6330751 / (11975.6330751 + 62642.6510196))
=0.13643575 / 0.16049194
=0.8501

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)
=(852.677174389 / 74099.5742777) / (973.583509258 / 80403.4662472)
=0.01150718 / 0.01210873
=0.9503

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)
=((22857.1565987 + 19948.4691914) / 109928.324081) / ((19668.9761982 + 19835.3602869) / 105249.820672)
=0.38939578 / 0.37533875
=1.0375

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
=(2753.1241956 - 30.2508677645 - 15077.9865654) / 109928.324081
=-0.1124

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 -3.20 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.04970.81741.31410.8980.98551.1351.08250.59341.33540.9075
GMI 0.96130.80741.04311.24630.88551.07350.93621.05511.02721.0011
AQI 0.86431.40011.05321.36320.86820.83851.37470.97620.86990.9547
SGI 1.31361.31421.02631.05760.79951.21051.29131.13420.76890.9203
DEPI 0.97990.59711.4131.07450.84911.07771.12530.92470.93630.8463
SGAI 0.90951.01581.33590.11731.32710.94280.94190.78060.79960.9536
LVGI 1.0220.90261.04491.02511.00231.03240.96440.91661.11331.0375
TATA -0.0754-0.139-0.1262-0.053-0.0864-0.0649-0.0565-0.0773-0.05-0.1059
M-score -2.58-2.98-2.74-2.34-3.26-2.49-2.25-3.02-2.66-3.17

Statoil ASA Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.8660.59920.841.24681.06641.23431.01530.85081.24710.9062
GMI 1.02661.05461.05331.07611.05121.03080.96740.93050.97520.9984
AQI 1.2140.97620.98850.9830.97940.86990.84280.81950.83360.9547
SGI 1.22351.12320.99620.86720.84550.83190.86760.93110.90880.9216
DEPI 0.98550.93250.98821.0470.87850.87710.89290.91530.99720.8501
SGAI 0.92120.77960.71940.70650.70840.78860.84930.88210.96030.9503
LVGI 0.57490.91660.90151.64910.88431.11331.08011.01751.89431.0375
TATA -0.0876-0.0757-0.0676-0.0623-0.065-0.0552-0.0583-0.07-0.0733-0.1124
M-score -2.56-3.02-2.84-2.79-2.77-2.72-2.95-3.11-3.04-3.20
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