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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: -3.14   Max: -2.27
Current: -3.05

-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 -2.68.


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 * 1.2471+0.528 * 0.9752+0.404 * 0.8336+0.892 * 0.9088+0.115 * 0.9972
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9603+4.679 * -0.0743-0.327 * 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 + 18670.6716661 = €75,753 Mil.
Gross Profit was 6694.18339237 + 7038.86691927 + 8778.25216811 + 8259.78154548 = €30,771 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 €857 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 + -380.306488425 = €129 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 21191.9544083 + 19027.3995916 + 21513.4405812 + 21623.9572193 = €83,357 Mil.
Gross Profit was 8750.46932618 + 7301.36147039 + 7705.31049991 + 9263.52941176 = €33,021 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 €9,075 Mil.
Selling, General & Admin. Expense(SGA) was €982 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 / 75752.752952) / (8838.3506537 / 83356.7518003)
=0.13223076 / 0.10603041
=1.2471

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 / 83356.7518003) / (6694.18339237 / 75752.752952)
=0.39613673 / 0.40620417
=0.9752

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
=75752.752952 / 83356.7518003
=0.9088

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))
=(9075.40199025 / (9075.40199025 + 58692.1723098)) / (10141.4889014 / (10141.4889014 + 65378.2290437))
=0.13391953 / 0.13428928
=0.9972

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)
=(857.076591099 / 75752.752952) / (982.082242539 / 83356.7518003)
=0.01131413 / 0.01178168
=0.9603

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 - 129.153415782 - 13759.570361) / 112799.433294
=-0.0743

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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.04970.81741.31410.8980.98551.1351.08250.59341.33541.3078
GMI 0.96130.80741.04311.24630.88551.07350.93621.05511.02721.0011
AQI 0.86431.40011.05321.36320.86820.83851.37470.97620.86990.9558
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 1.0220.90261.04491.02511.00231.03240.96440.91660.5592.0662
TATA -0.0754-0.139-0.1262-0.053-0.0864-0.0649-0.0565-0.0773-0.0512-0.1096
M-score -2.58-2.98-2.74-2.34-3.26-2.49-2.25-3.02-2.48-3.16

Statoil ASA Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.8660.59920.841.24681.06641.23431.01530.85081.24711.3062
GMI 1.02661.05461.05331.07611.05121.03080.96740.93050.97520.9986
AQI 1.2140.97620.98850.9830.97940.86990.84280.81950.83360.9558
SGI 1.22351.12320.99620.86720.84550.83190.86760.93110.90880.9215
DEPI 0.98550.93250.98821.0470.87850.87710.89290.91530.99720.8501
SGAI 0.92120.77960.71940.70650.70840.78860.84930.88210.96030.9505
LVGI 0.57490.91660.90151.64910.88430.5591.08011.01751.89432.0662
TATA -0.0876-0.0757-0.0676-0.0623-0.065-0.0564-0.0594-0.0711-0.0743-0.116
M-score -2.56-3.02-2.84-2.79-2.77-2.55-2.96-3.12-3.05-3.19
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