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Statoil ASA (FRA:DNQA)
Beneish M-Score
-3.06 (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 -3.10 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: -3.06

-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 -2.75.


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 * 0.9329+0.528 * 1.4326+0.404 * 1.1702+0.892 * 0.6646+0.115 * 1.4538
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4338+4.679 * -0.1125-0.327 * 1.0126
=-3.10

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was €5,246 Mil.
Revenue was 9696.51121396 + 9083.15373563 + 12019.645644 + 11765.2980487 = €42,565 Mil.
Gross Profit was 3225.34709861 + 3320.76149425 + 4473.51510144 + 4005.87899849 = €15,026 Mil.
Total Current Assets was €23,147 Mil.
Total Assets was €98,823 Mil.
Property, Plant and Equipment(Net PPE) was €56,915 Mil.
Depreciation, Depletion and Amortization(DDA) was €9,962 Mil.
Selling, General & Admin. Expense(SGA) was €794 Mil.
Total Current Liabilities was €13,661 Mil.
Long-Term Debt was €26,583 Mil.
Net Income was -273.228907084 + 545.079022989 + -1033.69136142 + -294.39543794 = €-1,056 Mil.
Non Operating Income was 79.2096831613 + 747.126436782 + -473.698705591 + 241.824824022 = €594 Mil.
Cash Flow from Operations was 1018.15592738 + 1980.06465517 + 2036.17001744 + 4436.95803261 = €9,471 Mil.
Accounts Receivable was €8,461 Mil.
Revenue was 15687.5398735 + 13874.6484339 + 16646.4030819 + 17841.0421355 = €64,050 Mil.
Gross Profit was 9265.27666399 + 7985.98909729 + 8541.37226277 + 6597.09241872 = €32,390 Mil.
Total Current Assets was €30,242 Mil.
Total Assets was €107,593 Mil.
Property, Plant and Equipment(Net PPE) was €59,896 Mil.
Depreciation, Depletion and Amortization(DDA) was €16,557 Mil.
Selling, General & Admin. Expense(SGA) was €833 Mil.
Total Current Liabilities was €15,506 Mil.
Long-Term Debt was €27,762 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)
=(5245.63901744 / 42564.6086422) / (8461.07725207 / 64049.6335248)
=0.12323945 / 0.13210188
=0.9329

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)
=(32389.7304428 / 64049.6335248) / (15025.5026928 / 42564.6086422)
=0.50569736 / 0.3530046
=1.4326

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 - (23147.0274119 + 56915.2723389) / 98822.5347099) / (1 - (30242.4057739 + 59895.8210817) / 107592.738127)
=0.18983762 / 0.1622276
=1.1702

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
=42564.6086422 / 64049.6335248
=0.6646

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))
=(16557.4555157 / (16557.4555157 + 59895.8210817)) / (9962.43362456 / (9962.43362456 + 56915.2723389))
=0.2165696 / 0.14896494
=1.4538

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)
=(794.202431669 / 42564.6086422) / (833.495464658 / 64049.6335248)
=0.01865875 / 0.01301327
=1.4338

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)
=((26583.3036668 + 13660.5553578) / 98822.5347099) / ((27761.8488818 + 15506.3120378) / 107592.738127)
=0.40723362 / 0.4021476
=1.0126

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
=(-1056.23668346 - 594.462238374 - 9471.3486326) / 98822.5347099
=-0.1125

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 -3.10 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

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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.06320.88811.27651.26581.18831.18470.86060.92450.92590.9329
GMI 0.88040.82310.84441.05791.13611.1711.14731.00421.13171.4326
AQI 0.84280.81950.83360.95580.98980.9610.9571.03721.08421.1702
SGI 0.83620.90470.88110.92270.83430.82070.7760.7290.73630.6646
DEPI 0.93640.96191.00790.82640.6360.60360.65270.77721.36781.4538
SGAI 1.04381.05571.01660.8110.91770.97061.10771.34661.31561.4338
LVGI 1.08011.01751.89431.03751.12541.10311.09691.06070.98561.0126
TATA -0.0573-0.0697-0.0727-0.117-0.1409-0.1457-0.163-0.1547-0.0998-0.1125
M-score -3.00-3.18-3.12-2.84-3.11-3.15-3.60-3.60-3.15-3.10
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