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Statoil ASA (FRA:DNQA)
Beneish M-Score
-3.16 (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 -3.19 suggests that the company is not a manipulator.

FRA:DNQA' s 10-Year Beneish M-Score Range
Min: -3.16   Max: -2.3
Current: -3.16

-3.16
-2.3

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.30. The lowest was -3.16. And the median was -2.73.


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 * 1.188+0.528 * 1.0572+0.404 * 0.9898+0.892 * 0.8355+0.115 * 0.6394
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1064+4.679 * -0.1422-0.327 * 1.1254
=-3.19

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was €9,072 Mil.
Revenue was 13914.5487292 + 17006.3485956 + 18103.6127509 + 17840.7267071 = €66,865 Mil.
Gross Profit was 5385.53131879 + 7032.11399989 + 6694.18339237 + 7038.86691927 = €26,151 Mil.
Total Current Assets was €32,105 Mil.
Total Assets was €115,616 Mil.
Property, Plant and Equipment(Net PPE) was €64,106 Mil.
Depreciation, Depletion and Amortization(DDA) was €16,622 Mil.
Selling, General & Admin. Expense(SGA) was €867 Mil.
Total Current Liabilities was €18,618 Mil.
Long-Term Debt was €28,915 Mil.
Net Income was -4102.71162698 + -991.851261474 + -574.136166863 + 1461.35645383 = €-4,207 Mil.
Non Operating Income was 219.581749049 + -66.866377178 + 85.5096418733 + 194.847527177 = €433 Mil.
Cash Flow from Operations was 3363.0678407 + 3042.4201616 + 3188.28807556 + 2204.21265119 = €11,798 Mil.
Accounts Receivable was €9,140 Mil.
Revenue was 21137.7418279 + 18670.6716661 + 21191.9544083 + 19027.3995916 = €80,028 Mil.
Gross Profit was 8778.25216811 + 8259.78154548 + 8750.46932618 + 7301.36147039 = €33,090 Mil.
Total Current Assets was €30,543 Mil.
Total Assets was €109,089 Mil.
Property, Plant and Equipment(Net PPE) was €60,049 Mil.
Depreciation, Depletion and Amortization(DDA) was €9,105 Mil.
Selling, General & Admin. Expense(SGA) was €938 Mil.
Total Current Liabilities was €21,499 Mil.
Long-Term Debt was €18,352 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)
=(9072.19331599 / 66865.2367829) / (9139.99332889 / 80027.7674939)
=0.13567877 / 0.11421027
=1.188

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)
=(7032.11399989 / 80027.7674939) / (5385.53131879 / 66865.2367829)
=0.41347979 / 0.39109554
=1.0572

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 - (32105.1630979 + 64106.3137883) / 115615.569342) / (1 - (30543.012008 + 60049.0326885) / 109089.076051)
=0.16783287 / 0.16955897
=0.9898

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
=66865.2367829 / 80027.7674939
=0.8355

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))
=(9104.60249992 / (9104.60249992 + 60049.0326885)) / (16622.2424217 / (16622.2424217 + 64106.3137883))
=0.13165761 / 0.20590288
=0.6394

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)
=(867.272265667 / 66865.2367829) / (938.196529251 / 80027.7674939)
=0.01297045 / 0.01172339
=1.1064

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)
=((28915.4492696 + 18618.2209326) / 115615.569342) / ((18352.3348899 + 21499.4829887) / 109089.076051)
=0.41113555 / 0.36531447
=1.1254

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
=(-4207.34260149 - 433.072540922 - 11797.9887291) / 115615.569342
=-0.1422

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 -3.19 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 1.04970.81741.31410.8981.1870.94281.08120.59271.3380.9075
GMI 0.96130.80741.04311.24630.96420.9860.93621.05711.02521.0011
AQI 0.86431.40011.05321.36320.8861.21030.93340.97610.86990.9547
SGI 1.31361.31421.02631.05760.79961.20971.29191.13640.76740.9203
DEPI 0.97990.59711.4131.07450.84241.07871.13410.9240.93630.8463
SGAI 0.90951.01581.33590.11731.32680.94350.9420.77860.80120.9536
LVGI 1.0220.90261.04491.02511.00150.9941.00260.91671.11311.0375
TATA -0.0754-0.139-0.1262-0.053-0.1007-0.0636-0.0469-0.0773-0.05-0.1096
M-score -2.58-2.98-2.74-2.34-3.10-2.54-2.40-3.02-2.66-3.19

Statoil ASA Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.59820.83831.2441.06371.23671.01740.85271.24991.30621.188
GMI 1.05661.05591.07911.05361.02850.9650.92790.97280.99861.0572
AQI 0.97610.98850.98280.97920.86990.84280.81950.83360.95580.9898
SGI 1.12590.99830.86910.84740.83030.86580.92910.90670.92150.8355
DEPI 0.93140.98591.01680.87850.87710.89340.91550.99690.85010.6394
SGAI 0.77820.71750.69780.70740.79020.85110.88940.96170.95051.1064
LVGI 0.91670.90151.01130.57121.11311.08011.01751.89431.03751.1254
TATA -0.0752-0.1014-0.0975-0.0992-0.0552-0.0584-0.0701-0.0734-0.1162-0.1422
M-score -3.01-3.00-2.74-2.83-2.72-2.95-3.11-3.04-2.85-3.19
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