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 1397.79. The lowest was -138.01. And the median was -2.50.
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 * 4.0921||+||0.528 * -261.4413||+||0.404 * 0.8899||+||0.892 * 1.4765||+||0.115 * 0.9699|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.7864||+||4.679 * 0.0069||-||0.327 * 1.7557|
|This Year (Jun15) TTM:||Last Year (Jun14) TTM:|
|Accounts Receivable was $8.0 Mil.|
Revenue was 20.144 + 32.158 + 35.272 + 28.834 = $116.4 Mil.
Gross Profit was -16.081 + -6.086 + 10.61 + 11.493 = $-0.1 Mil.
Total Current Assets was $584.9 Mil.
Total Assets was $4,171.2 Mil.
Property, Plant and Equipment(Net PPE) was $2,353.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $61.2 Mil.
Selling, General & Admin. Expense(SGA) was $26.1 Mil.
Total Current Liabilities was $298.9 Mil.
Long-Term Debt was $1,593.1 Mil.
Net Income was -2.563 + 21.918 + -39.651 + 7.769 = $-12.5 Mil.
Non Operating Income was 54.716 + -31.381 + -27.841 + 7.077 = $2.6 Mil.
Cash Flow from Operations was -20.649 + -55.531 + 13.489 + 18.976 = $-43.7 Mil.
|Accounts Receivable was $1.3 Mil.
Revenue was 21.084 + 20.966 + 19.758 + 17.03 = $78.8 Mil.
Gross Profit was 6.058 + 1.085 + 1.933 + 2.256 = $11.3 Mil.
Total Current Assets was $541.2 Mil.
Total Assets was $3,406.7 Mil.
Property, Plant and Equipment(Net PPE) was $1,733.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $43.7 Mil.
Selling, General & Admin. Expense(SGA) was $22.4 Mil.
Total Current Liabilities was $223.3 Mil.
Long-Term Debt was $656.9 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)|
|=||(8.03 / 116.408)||/||(1.329 / 78.838)|
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)|
|=||(-6.086 / 78.838)||/||(-16.081 / 116.408)|
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 - (584.86 + 2353.444) / 4171.231)||/||(1 - (541.244 + 1733.924) / 3406.735)|
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))|
|=||(43.667 / (43.667 + 1733.924))||/||(61.159 / (61.159 + 2353.444))|
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)|
|=||(26.062 / 116.408)||/||(22.445 / 78.838)|
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)|
|=||((1593.124 + 298.941) / 4171.231)||/||((656.875 + 223.272) / 3406.735)|
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|
|=||(-12.527 - 2.571||-||-43.715)||/||4171.231|
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 -138.01 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