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Statoil ASA (FRA:DNQA)
Beneish M-Score
-3.43 (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 -3.57 suggests that the company is not a manipulator.

FRA:DNQA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.43   Max: -2.25
Current: -3.43

-3.43
-2.25

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.25. The lowest was -3.43. 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 * 0.8659+0.528 * 1.2361+0.404 * 0.957+0.892 * 0.7756+0.115 * 0.6589
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2478+4.679 * -0.1615-0.327 * 1.0969
=-3.57

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was €6,743 Mil.
Revenue was 12034.872352 + 15798.4790875 + 13914.5487292 + 17006.3485956 = €58,754 Mil.
Gross Profit was 4097.66431287 + 6912.54752852 + 8008.95537322 + 8726.06222173 = €27,745 Mil.
Total Current Assets was €28,608 Mil.
Total Assets was €105,851 Mil.
Property, Plant and Equipment(Net PPE) was €60,207 Mil.
Depreciation, Depletion and Amortization(DDA) was €15,413 Mil.
Selling, General & Admin. Expense(SGA) was €829 Mil.
Total Current Liabilities was €14,928 Mil.
Long-Term Debt was €28,415 Mil.
Net Income was -301.140684411 + 1140.68441065 + -4102.71162698 + -991.851261474 = €-4,255 Mil.
Non Operating Income was 258.120586638 + -661.596958175 + 208.024814889 + -66.866377178 = €-262 Mil.
Cash Flow from Operations was 4538.62031505 + 2155.89353612 + 3363.0678407 + 3042.4201616 = €13,100 Mil.
Accounts Receivable was €10,041 Mil.
Revenue was 18103.6127509 + 17840.7267071 + 21137.7418279 + 18670.6716661 = €75,753 Mil.
Gross Profit was 6694.18339237 + 9389.21521584 + 11069.2795197 + 17066.2536681 = €44,219 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.



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)
=(6743.40032591 / 58754.2487643) / (10041.2750885 / 75752.752952)
=0.11477298 / 0.13255327
=0.8659

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)
=(6912.54752852 / 75752.752952) / (4097.66431287 / 58754.2487643)
=0.58372706 / 0.47222507
=1.2361

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 - (28608.365019 + 60206.6268332) / 105850.95057) / (1 - (28450.2794176 + 65378.2290437) / 112799.433294)
=0.1609429 / 0.1681828
=0.957

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
=58754.2487643 / 75752.752952
=0.7756

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))
=(10141.4889014 / (10141.4889014 + 65378.2290437)) / (15412.9011629 / (15412.9011629 + 60206.6268332))
=0.13428928 / 0.20382171
=0.6589

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)
=(829.451566944 / 58754.2487643) / (857.076591099 / 75752.752952)
=0.0141173 / 0.01131413
=1.2478

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)
=((28414.774579 + 14927.9739272) / 105850.95057) / ((19655.0019677 + 22452.3888233) / 112799.433294)
=0.40946962 / 0.37329435
=1.0969

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
=(-4255.01916221 - -262.317933826 - 13100.0018535) / 105850.95057
=-0.1615

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 -3.57 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 1.04970.81741.31410.8980.98551.1351.08250.59341.33540.9075
GMI 0.96130.80741.04311.24630.69111.08440.98291.05650.9591.2938
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 1.0220.90261.04491.02511.00231.03240.96440.56671.80071.0375
TATA -0.0754-0.139-0.1262-0.053-0.0864-0.0649-0.0565-0.0773-0.0498-0.1097
M-score -2.58-2.98-2.74-2.34-3.37-2.48-2.23-2.91-2.92-3.03

Statoil ASA Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.24681.06641.23431.01530.85081.25011.30621.1881.17380.8659
GMI 0.90640.88580.86580.89920.93370.95811.18421.18381.2541.2361
AQI 0.9830.97940.86990.84280.81950.83360.95580.98980.9610.957
SGI 0.86720.84550.83190.86760.93110.90880.92150.83550.82220.7756
DEPI 1.0470.87850.87710.89290.91530.99720.85010.63940.6010.6589
SGAI 0.70650.70840.78860.84930.88210.96030.95051.10641.15541.2478
LVGI 1.64910.88431.80071.08011.01751.89431.03751.12541.10311.0969
TATA -0.0623-0.065-0.055-0.0582-0.07-0.0733-0.1163-0.1422-0.1462-0.1615
M-score -2.88-2.86-3.03-2.99-3.11-3.05-2.75-3.13-3.15-3.57
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