GLNG has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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 1397.76. The lowest was -138.01. And the median was -2.62.
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 * 0.8821||+||0.528 * 0.3271||+||0.404 * 0.7053||+||0.892 * 0.6976||+||0.115 * 0.9959|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 2.1213||+||4.679 * 0.0283||-||0.327 * 1.1837|
|This Year (Sep16) TTM:||Last Year (Sep15) TTM:|
|Accounts Receivable was $5.06 Mil.|
Revenue was 22.267 + 18.37 + 16.557 + 22.994 = $80.19 Mil.
Gross Profit was -1.487 + -7.851 + -10.137 + -2.023 = $-21.50 Mil.
Total Current Assets was $636.64 Mil.
Total Assets was $4,178.96 Mil.
Property, Plant and Equipment(Net PPE) was $2,594.19 Mil.
Depreciation, Depletion and Amortization(DDA) was $75.69 Mil.
Selling, General & Admin. Expense(SGA) was $41.09 Mil.
Total Current Liabilities was $1,333.79 Mil.
Long-Term Debt was $1,068.11 Mil.
Net Income was -23.943 + -84.601 + -80.088 + -67.609 = $-256.24 Mil.
Non Operating Income was 4.847 + -27.471 + -24.702 + -27.07 = $-74.40 Mil.
Cash Flow from Operations was 12.142 + -63.656 + 4.452 + -253.085 = $-300.15 Mil.
|Accounts Receivable was $8.23 Mil.
Revenue was 27.378 + 20.144 + 32.158 + 35.272 = $114.95 Mil.
Gross Profit was 1.475 + -16.081 + -6.086 + 10.61 = $-10.08 Mil.
Total Current Assets was $388.39 Mil.
Total Assets was $4,038.97 Mil.
Property, Plant and Equipment(Net PPE) was $2,351.41 Mil.
Depreciation, Depletion and Amortization(DDA) was $68.32 Mil.
Selling, General & Admin. Expense(SGA) was $27.77 Mil.
Total Current Liabilities was $370.30 Mil.
Long-Term Debt was $1,590.90 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)|
|=||(5.064 / 80.188)||/||(8.23 / 114.952)|
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)|
|=||(-10.082 / 114.952)||/||(-21.498 / 80.188)|
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 - (636.642 + 2594.187) / 4178.955)||/||(1 - (388.392 + 2351.408) / 4038.969)|
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))|
|=||(68.315 / (68.315 + 2351.408))||/||(75.687 / (75.687 + 2594.187))|
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)|
|=||(41.094 / 80.188)||/||(27.771 / 114.952)|
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)|
|=||((1068.108 + 1333.786) / 4178.955)||/||((1590.899 + 370.298) / 4038.969)|
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|
|=||(-256.241 - -74.396||-||-300.147)||/||4178.955|
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 -3.45 suggests that the company will not 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