GLNG has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
Beneish M-Score 44.28 higher than -2.22, which implies that it might have manipulated its financial results.
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.
During the past 13 years, the highest Beneish M-Score of Golar LNG Ltd was 44.28. The lowest was -3.16. And the median was -2.72.
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 Golar LNG Ltd 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 * 51.6621||+||0.528 * 1.5352||+||0.404 * 0.9271||+||0.892 * 1.056||+||0.115 * 0.9359|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.7715||+||4.679 * -0.0054||-||0.327 * 1.501|
|This Year (Dec14) TTM:||Last Year (Dec13) TTM:|
|Accounts Receivable was $4.4 Mil.|
Revenue was 35.271 + 28.834 + 21.084 + 20.966 = $106.2 Mil.
Gross Profit was 10.609 + 11.493 + 6.058 + 1.085 = $29.2 Mil.
Total Current Assets was $742.8 Mil.
Total Assets was $3,992.0 Mil.
Property, Plant and Equipment(Net PPE) was $1,993.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $49.8 Mil.
Selling, General & Admin. Expense(SGA) was $19.3 Mil.
Total Current Liabilities was $369.7 Mil.
Long-Term Debt was $1,264.4 Mil.
Net Income was -39.651 + 7.769 + -24.23 + 12.991 = $-43.1 Mil.
Non Operating Income was -27.774 + 7.077 + -16.335 + -9.578 = $-46.6 Mil.
Cash Flow from Operations was 13.489 + 18.976 + 73.372 + -80.964 = $24.9 Mil.
|Accounts Receivable was $0.1 Mil.
Revenue was 19.758 + 17.03 + 27.926 + 35.811 = $100.5 Mil.
Gross Profit was 1.933 + 2.256 + 13.835 + 24.492 = $42.5 Mil.
Total Current Assets was $181.7 Mil.
Total Assets was $2,665.2 Mil.
Property, Plant and Equipment(Net PPE) was $1,579.2 Mil.
Depreciation, Depletion and Amortization(DDA) was $36.9 Mil.
Selling, General & Admin. Expense(SGA) was $23.6 Mil.
Total Current Liabilities was $90.6 Mil.
Long-Term Debt was $636.2 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(4.419 / 106.155)||/||(0.081 / 100.525)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(11.493 / 100.525)||/||(10.609 / 106.155)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (742.838 + 1993.431) / 3991.993)||/||(1 - (181.696 + 1579.24) / 2665.221)|
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.
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))|
|=||(36.871 / (36.871 + 1579.24))||/||(49.811 / (49.811 + 1993.431))|
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)|
|=||(19.267 / 106.155)||/||(23.649 / 100.525)|
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)|
|=||((1264.356 + 369.69) / 3991.993)||/||((636.244 + 90.574) / 2665.221)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-43.121 - -46.61||-||24.873)||/||3991.993|
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.
Golar LNG Ltd has a M-score of 44.28 signals that the company is likely to be a manipulator.
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
Golar LNG Ltd Annual Data
Golar LNG Ltd Quarterly Data