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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 -3.13 suggests that the company is not a manipulator.

FRA:DNQA' s 10-Year Beneish M-Score Range
Min: -3.06   Max: -2.27
Current: -3.06

-3.06
-2.27

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.27. The lowest was -3.06. And the median was -2.67.


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 * 0.8503+0.528 * 0.9283+0.404 * 0.8195+0.892 * 0.9278+0.115 * 0.9144
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8858+4.679 * -0.072-0.327 * 1.0175
=-3.13

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was €8,643 Mil.
Revenue was 17464.6717212 + 21227.1617327 + 18427.4261603 + 20921.7347453 = €78,041 Mil.
Gross Profit was 6890.49846749 + 8815.38718849 + 8219.08471276 + 8649.62178517 = €32,575 Mil.
Total Current Assets was €26,680 Mil.
Total Assets was €107,482 Mil.
Property, Plant and Equipment(Net PPE) was €62,658 Mil.
Depreciation, Depletion and Amortization(DDA) was €9,513 Mil.
Selling, General & Admin. Expense(SGA) was €883 Mil.
Total Current Liabilities was €20,540 Mil.
Long-Term Debt was €18,645 Mil.
Net Income was 1430.55331505 + 2869.84445559 + 1762.9341123 + 1761.95999328 = €7,825 Mil.
Non Operating Income was 190.740442007 + 230.071918381 + -381.1749432 + 12.3213985544 = €52 Mil.
Cash Flow from Operations was 2157.7512502 + 6659.97658471 + 1739.11067835 + 4953.20221886 = €15,510 Mil.
Accounts Receivable was €10,956 Mil.
Revenue was 18703.7344398 + 21326.147739 + 21570.8828829 + 22516.7659425 = €84,118 Mil.
Gross Profit was 7177.16182573 + 7638.22920262 + 9240.79279279 + 8536.65031535 = €32,593 Mil.
Total Current Assets was €21,950 Mil.
Total Assets was €102,560 Mil.
Property, Plant and Equipment(Net PPE) was €59,484 Mil.
Depreciation, Depletion and Amortization(DDA) was €8,152 Mil.
Selling, General & Admin. Expense(SGA) was €1,074 Mil.
Total Current Liabilities was €21,075 Mil.
Long-Term Debt was €15,673 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)
=(8642.92627843 / 78040.9943596) / (10955.9502075 / 84117.5310043)
=0.11074854 / 0.13024574
=0.8503

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)
=(8815.38718849 / 84117.5310043) / (6890.49846749 / 78040.9943596)
=0.38746779 / 0.4174036
=0.9283

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 - (26679.8193257 + 62658.2351992) / 107482.239071) / (1 - (21949.9419087 + 59484.2157676) / 102559.86722)
=0.168811 / 0.20598417
=0.8195

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
=78040.9943596 / 84117.5310043
=0.9278

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))
=(8151.70394185 / (8151.70394185 + 59484.2157676)) / (9512.64957082 / (9512.64957082 + 62658.2351992))
=0.1205233 / 0.1318073
=0.9144

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)
=(882.895300621 / 78040.9943596) / (1074.33583469 / 84117.5310043)
=0.01131322 / 0.01277184
=0.8858

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)
=((18644.8782062 + 20540.3613486) / 107482.239071) / ((15673.0954357 + 21074.9875519) / 102559.86722)
=0.36457409 / 0.35830861
=1.0175

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
=(7825.29187622 - 51.9588157419 - 15510.0407321) / 107482.239071
=-0.072

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 -3.13 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 0.86961.04970.81741.4690.84741.13071.12621.08150.66181.2563
GMI 1.02850.96130.80741.04311.24630.88551.07350.93621.05511.0272
AQI 0.75230.86431.40011.05321.36320.86820.83851.37470.97620.8699
SGI 1.27171.30231.30951.04591.08080.79831.1911.29141.11920.7726
DEPI 1.11260.97990.59711.4131.07450.84911.07771.12530.92470.9363
SGAI 0.83360.90951.01581.33590.11731.32710.94280.94190.78060.7996
LVGI 0.91341.0220.90261.04491.02511.00231.03240.96440.91660.559
TATA -0.0889-0.0754-0.139-0.1262-0.053-0.0864-0.0649-0.0565-0.0773-0.0512
M-score -2.79-2.59-2.98-2.58-2.37-3.13-2.52-2.26-2.97-2.55

Statoil ASA Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.00310.91590.86730.66160.83751.22441.06211.18391.03930.8503
GMI 0.97551.02971.02651.05471.05321.07641.0511.02850.96550.9283
AQI 1.29231.30581.2140.97620.98850.9830.97940.86990.84280.8195
SGI 1.33351.30521.22371.11940.99440.85750.83280.81980.85860.9278
DEPI 1.04080.9090.98640.9240.98571.03060.87710.89050.910.9144
SGAI 0.93581.01020.92210.780.72030.7070.75220.7920.85160.8858
LVGI 0.96390.55960.57490.91660.90151.64910.88430.5591.08011.0175
TATA -0.0857-0.0852-0.0877-0.0757-0.0679-0.0632-0.0654-0.0554-0.0588-0.072
M-score -2.45-2.41-2.56-2.96-2.85-2.82-2.79-2.60-2.94-3.13
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