Range Resources (FRA:RAX) Beneish M-Score : -2.60 (As of May. 23, 2024)

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What is Range Resources Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.6 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Range Resources's Beneish M-Score or its related term are showing as below:

FRA:RAX' s Beneish M-Score Range Over the Past 10 Years
Min: -25.13 Med: -2.62 Max: 5.31
Current: -2.6

During the past 13 years, the highest Beneish M-Score of Range Resources was 5.31. The lowest was -25.13. And the median was -2.62.

Range Resources Beneish M-Score Historical Data

The historical data trend for Range Resources's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Range Resources Beneish M-Score Chart

Range Resources Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.45

3.32

-1.62

-1.86

-2.63

Range Resources Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-2.49	-2.99	-3.26	-2.63	-2.60

Competitive Comparison of Range Resources's Beneish M-Score

For the Oil & Gas E&P subindustry, Range Resources's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Range Resources's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Range Resources's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Range Resources's Beneish M-Score falls into.

Range Resources Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Range Resources for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.3839

0.528 * 2.2735

0.404 * 0.8833

0.892 * 0.4446

0.115 * 1.0842

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 2.129

4.679 * -0.093984

0.327 * 0.882

-2.58

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €161 Mil.
Revenue was 550.869 + 596.323 + 535.336 + 473.723 = €2,156 Mil.
Gross Profit was 153.635 + 191.484 + 129.059 + 84.308 = €558 Mil.
Total Current Assets was €793 Mil.
Total Assets was €6,782 Mil.
Property, Plant and Equipment(Net PPE) was €5,843 Mil.
Depreciation, Depletion and Amortization(DDA) was €324 Mil.
Selling, General, & Admin. Expense(SGA) was €153 Mil.
Total Current Liabilities was €587 Mil.
Long-Term Debt & Capital Lease Obligation was €1,680 Mil.
Net Income was 84.767 + 284.301 + 46.316 + 27.903 = €443 Mil.
Non Operating Income was 25.445 + 241.888 + 7.318 + 35.707 = €310 Mil.
Cash Flow from Operations was 305.376 + 207.329 + 140.785 + 116.843 = €770 Mil.

Total Receivables was €262 Mil.
Revenue was 764.379 + 1115.995 + 1583.936 + 1385.951 = €4,850 Mil.
Gross Profit was 329.044 + 639.97 + 1016.25 + 870.794 = €2,856 Mil.
Total Current Assets was €648 Mil.
Total Assets was €6,428 Mil.
Property, Plant and Equipment(Net PPE) was €5,623 Mil.
Depreciation, Depletion and Amortization(DDA) was €340 Mil.
Selling, General, & Admin. Expense(SGA) was €162 Mil.
Total Current Liabilities was €707 Mil.
Long-Term Debt & Capital Lease Obligation was €1,730 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(161.198 / 2156.251)	/	(262.015 / 4850.261)
	=	0.074758	/	0.054021
	=	1.3839

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)
	=	(2856.058 / 4850.261)	/	(558.486 / 2156.251)
	=	0.588846	/	0.259008
	=	2.2735

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (792.709 + 5842.63) / 6782.057)	/	(1 - (647.976 + 5622.624) / 6428.037)
	=	0.021633	/	0.024492
	=	0.8833

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	2156.251	/	4850.261
	=	0.4446

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(339.812 / (339.812 + 5622.624))	/	(324.153 / (324.153 + 5842.63))
	=	0.056992	/	0.052564
	=	1.0842

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(152.926 / 2156.251)	/	(161.579 / 4850.261)
	=	0.070922	/	0.033313
	=	2.129

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((1680.44 + 587.214) / 6782.057)	/	((1729.946 + 706.945) / 6428.037)
	=	0.334361	/	0.379103
	=	0.882

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
	=	(443.287 - 310.358	-	770.333)	/	6782.057
	=	-0.093984

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Range Resources has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.

Range Resources Beneish M-Score Related Terms

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Range Resources (FRA:RAX) Business Description

Industry

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RRC:USA RAX:Germany

Address

100 Throckmorton Street, Suite 1200, Fort Worth, TX, USA, 76102

Website

https://www.rangeresources.com

Fort Worth-based Range Resources is an independent exploration and production company with that focuses entirely on its operations in the Marcellus Shale in Pennsylvania. At year-end 2022, Range's proved reserves totaled 18.1 trillion cubic feet equivalent, with net production of 2.1 billion cubic feet equivalent per day. Natural gas accounted for 70% of production.