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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 -3.12 suggests that the company is not a manipulator.

FRA:DNQA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.53   Max: -2.24
Current: -3.05

-3.53
-2.24

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.24. The lowest was -3.53. And the median was -2.76.


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 * 0.9412+0.528 * 1.1728+0.404 * 1.0841+0.892 * 0.7312+0.115 * 1.3923
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3148+4.679 * -0.0998-0.327 * 0.9856
=-3.12

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was €6,167 Mil.
Revenue was 9083.15373563 + 12019.645644 + 11765.2980487 + 15687.5398735 = €48,556 Mil.
Gross Profit was 3320.76149425 + 4473.51510144 + 4005.87899849 + 6864.00695001 = €18,664 Mil.
Total Current Assets was €24,874 Mil.
Total Assets was €101,295 Mil.
Property, Plant and Equipment(Net PPE) was €57,989 Mil.
Depreciation, Depletion and Amortization(DDA) was €10,193 Mil.
Selling, General & Admin. Expense(SGA) was €829 Mil.
Total Current Liabilities was €13,918 Mil.
Long-Term Debt was €27,128 Mil.
Net Income was 545.079022989 + -1033.69136142 + -294.39543794 + 1132.67397309 = €350 Mil.
Non Operating Income was 747.126436782 + -473.698705591 + 241.824824022 + -645.624164662 = €-130 Mil.
Cash Flow from Operations was 1980.06465517 + 2036.17001744 + 4436.95803261 + 2140.75470017 = €10,594 Mil.
Accounts Receivable was €8,961 Mil.
Revenue was 14333.3641319 + 16646.4030819 + 17841.0421355 + 17583.8809156 = €66,405 Mil.
Gross Profit was 5542.82546429 + 8541.37226277 + 6597.09241872 + 9254.04283506 = €29,935 Mil.
Total Current Assets was €31,727 Mil.
Total Assets was €114,262 Mil.
Property, Plant and Equipment(Net PPE) was €63,357 Mil.
Depreciation, Depletion and Amortization(DDA) was €16,654 Mil.
Selling, General & Admin. Expense(SGA) was €862 Mil.
Total Current Liabilities was €18,399 Mil.
Long-Term Debt was €28,578 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)
=(6167.38505747 / 48555.6373017) / (8961.47094151 / 66404.6902649)
=0.12701687 / 0.13495238
=0.9412

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)
=(29935.3329808 / 66404.6902649) / (18664.1625442 / 48555.6373017)
=0.45080148 / 0.38438714
=1.1728

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 - (24874.2816092 + 57988.5057471) / 101294.899425) / (1 - (31726.8779451 + 63356.7402753) / 114262.219348)
=0.18196486 / 0.16784727
=1.0841

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
=48555.6373017 / 66404.6902649
=0.7312

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))
=(16653.900321 / (16653.900321 + 63356.7402753)) / (10192.6652187 / (10192.6652187 + 57988.5057471))
=0.20814607 / 0.14949384
=1.3923

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)
=(828.82406875 / 48555.6373017) / (862.130340649 / 66404.6902649)
=0.01706957 / 0.01298297
=1.3148

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)
=((27128.2327586 + 13917.9238506) / 101294.899425) / ((28578.0282731 + 18398.7803751) / 114262.219348)
=0.40521445 / 0.4111316
=0.9856

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
=(349.666196715 - -130.371609449 - 10593.9474054) / 101294.899425
=-0.0998

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 -3.12 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 1.01781.07140.89620.98731.13581.08190.59231.33190.91160.877
GMI 0.89870.90911.00931.19050.77760.98251.05030.96231.00281.3319
AQI 1.40011.05321.36320.86820.83851.37470.97620.86990.95471.0384
SGI 1.05131.28081.0550.78991.23611.25291.1570.77390.8890.7423
DEPI 0.99740.84591.07250.84761.08321.12460.92390.93630.84630.7767
SGAI 1.13971.28960.75220.20690.94350.9420.77860.94070.81221.3251
LVGI 0.90261.04491.02511.00231.03240.96440.56671.80071.03751.0608
TATA -0.0773-0.1239-0.0462-0.1007-0.0636-0.0469-0.0773-0.0498-0.1072-0.142
M-score -2.66-2.85-2.55-2.98-2.62-2.22-2.89-2.94-3.18-3.40

Statoil ASA Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.28551.05810.8811.26521.26011.16481.17360.85110.91660.9412
GMI 1.06681.10461.14831.19190.95861.0461.11461.09661.24781.1728
AQI 0.86990.84280.81950.83360.95580.98990.9610.9571.03721.0841
SGI 0.80180.84030.9120.89110.92690.84310.82850.78270.73530.7312
DEPI 0.91890.93580.96171.00820.82640.62480.59730.64520.76811.3923
SGAI 0.86960.94971.00861.11430.94931.10791.15621.24731.34561.3148
LVGI 1.80071.08011.01751.89431.03751.12541.10311.09691.06070.9856
TATA -0.0533-0.0574-0.0699-0.0729-0.1172-0.1445-0.1481-0.1655-0.1572-0.0998
M-score -2.91-2.87-3.00-2.95-2.92-3.23-3.23-3.67-3.49-3.12
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