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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 -3.05 suggests that the company is not a manipulator.

FRA:DNQA' s 10-Year Beneish M-Score Range
Min: -3.09   Max: -2.3
Current: -3.05

-3.09
-2.3

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.30. The lowest was -3.09. 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 * 1.2536+0.528 * 0.9688+0.404 * 0.8336+0.892 * 0.9041+0.115 * 0.9957
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0206+4.679 * -0.0731-0.327 * 1.8943
=-3.05

* 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 €10,017 Mil.
Revenue was 18103.6127509 + 17840.7267071 + 21137.7418279 + 18730.0945549 = €75,812 Mil.
Gross Profit was 6694.18339237 + 7038.86691927 + 8778.25216811 + 8366.74274535 = €30,878 Mil.
Total Current Assets was €28,450 Mil.
Total Assets was €112,799 Mil.
Property, Plant and Equipment(Net PPE) was €65,378 Mil.
Depreciation, Depletion and Amortization(DDA) was €10,141 Mil.
Selling, General & Admin. Expense(SGA) was €964 Mil.
Total Current Liabilities was €22,452 Mil.
Long-Term Debt was €19,655 Mil.
Net Income was -574.136166863 + 1461.35645383 + 2857.75517011 + 1758.91750897 = €5,504 Mil.
Non Operating Income was 85.5096418733 + 194.847527177 + 229.102735157 + -522.921421585 = €-13 Mil.
Cash Flow from Operations was 3188.28807556 + 2204.21265119 + 6631.92128085 + 1735.14835344 = €13,760 Mil.
Accounts Receivable was €8,838 Mil.
Revenue was 21317.4991619 + 19130.599047 + 21593.5651271 + 21814.2534759 = €83,856 Mil.
Gross Profit was 8813.24170298 + 7340.06126617 + 7678.60231794 + 9255.78716578 = €33,088 Mil.
Total Current Assets was €24,607 Mil.
Total Assets was €104,353 Mil.
Property, Plant and Equipment(Net PPE) was €58,692 Mil.
Depreciation, Depletion and Amortization(DDA) was €9,059 Mil.
Selling, General & Admin. Expense(SGA) was €1,045 Mil.
Total Current Liabilities was €20,564 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)
=(10016.8437623 / 75812.1758409) / (8838.3506537 / 83855.916812)
=0.13212711 / 0.10539925
=1.2536

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)
=(7038.86691927 / 83855.916812) / (6694.18339237 / 75812.1758409)
=0.39457791 / 0.40729665
=0.9688

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 - (28450.2794176 + 65378.2290437) / 112799.433294) / (1 - (24606.7717063 + 58692.1723098) / 104352.799195)
=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
=75812.1758409 / 83855.916812
=0.9041

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))
=(9059.24216528 / (9059.24216528 + 58692.1723098)) / (10141.4889014 / (10141.4889014 + 65378.2290437))
=0.13371296 / 0.13428928
=0.9957

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)
=(964.037790968 / 75812.1758409) / (1044.76127448 / 83855.916812)
=0.01271613 / 0.012459
=1.0206

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)
=((19655.0019677 + 22452.3888233) / 112799.433294) / ((0 + 20564.2306403) / 104352.799195)
=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
=(5503.89296604 - -13.4615173775 - 13759.570361) / 112799.433294
=-0.0731

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 -3.05 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 0.86961.04970.81741.31410.8981.1870.94281.08120.59271.3319
GMI 1.02850.96130.80741.04311.24630.96420.9860.93621.05711.0242
AQI 0.75230.86431.40011.05321.36320.8861.21030.93340.97610.8699
SGI 1.21921.31361.31421.02631.05760.79961.20971.29191.13640.7709
DEPI 1.11260.97990.59711.4131.07450.84241.07871.13410.9240.9363
SGAI 0.83360.90951.01581.33590.11731.32680.94350.9420.77860.9407
LVGI 0.91341.0220.90261.04491.02511.00150.9941.00260.91670.5589
TATA -0.0889-0.0754-0.139-0.1262-0.053-0.1007-0.0636-0.0469-0.0773-0.0498
M-score -2.84-2.58-2.98-2.74-2.34-3.10-2.54-2.40-3.02-2.50

Statoil ASA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.91370.86580.59820.83761.24131.05981.23111.01460.85251.2536
GMI 1.05641.06581.05661.05761.0811.05511.02730.96090.92360.9688
AQI 1.30611.21430.97610.98850.98280.97920.86990.84280.81950.8336
SGI 1.30071.22421.12590.99910.8710.85050.83410.86820.92920.9041
DEPI 0.97080.98520.93140.98591.01820.87960.87820.89450.91430.9957
SGAI 1.01380.92220.77820.70180.69570.74910.92311.04771.06011.0206
LVGI 0.91250.89010.91670.90151.01130.57120.55891.08011.01751.8943
TATA -0.0417-0.0516-0.0752-0.1017-0.0977-0.0995-0.0553-0.0581-0.0698-0.0731
M-score -2.31-2.48-3.01-3.00-2.74-2.83-2.57-2.99-3.14-3.05
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