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InterOil Corp (NYSE:IOC)
Beneish M-Score
-1.24 (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.

InterOil Corp has a M-score of -1.24 signals that the company is a manipulator.

IOC' s Beneish M-Score Range Over the Past 10 Years
Min: -11.21   Max: 951.6
Current: -1.24

-11.21
951.6

During the past 13 years, the highest Beneish M-Score of InterOil Corp was 951.60. The lowest was -11.21. And the median was -1.35.


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 InterOil Corp 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 * 2.1882+0.528 * 1+0.404 * 0.9467+0.892 * 0.4409+0.115 * 12.6233
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.2809+4.679 * -0.0536-0.327 * 1.5946
=-1.24

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $564.51 Mil.
Revenue was 0.921 + 11.689 + 11.822 + -13.643 = $10.79 Mil.
Gross Profit was 0.921 + 11.689 + 11.822 + -13.643 = $10.79 Mil.
Total Current Assets was $617.83 Mil.
Total Assets was $1,174.80 Mil.
Property, Plant and Equipment(Net PPE) was $531.63 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.72 Mil.
Selling, General & Admin. Expense(SGA) was $49.57 Mil.
Total Current Liabilities was $300.86 Mil.
Long-Term Debt was $0.00 Mil.
Net Income was -16.978 + -83.83 + -103.725 + -32.531 = $-237.06 Mil.
Non Operating Income was -1.415 + -90.703 + -13.812 + 13.177 = $-92.75 Mil.
Cash Flow from Operations was -14.418 + -39.124 + -16.7 + -11.072 = $-81.31 Mil.
Accounts Receivable was $585.14 Mil.
Revenue was 13.215 + -13.182 + 10.749 + 13.689 = $24.47 Mil.
Gross Profit was 13.215 + -13.182 + 10.749 + 13.689 = $24.47 Mil.
Total Current Assets was $893.87 Mil.
Total Assets was $1,318.12 Mil.
Property, Plant and Equipment(Net PPE) was $394.22 Mil.
Depreciation, Depletion and Amortization(DDA) was $6.80 Mil.
Selling, General & Admin. Expense(SGA) was $49.29 Mil.
Total Current Liabilities was $211.69 Mil.
Long-Term Debt was $0.00 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)
=(564.509 / 10.789) / (585.141 / 24.471)
=52.32264343 / 23.91160966
=2.1882

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)
=(24.471 / 24.471) / (10.789 / 10.789)
=1 / 1
=1

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 - (617.828 + 531.634) / 1174.8) / (1 - (893.873 + 394.218) / 1318.12)
=0.02156793 / 0.02278169
=0.9467

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
=10.789 / 24.471
=0.4409

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))
=(6.799 / (6.799 + 394.218)) / (0.715 / (0.715 + 531.634))
=0.01695439 / 0.0013431
=12.6233

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)
=(49.572 / 10.789) / (49.294 / 24.471)
=4.59467977 / 2.01438437
=2.2809

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)
=((0 + 300.855) / 1174.8) / ((0 + 211.685) / 1318.12)
=0.2560904 / 0.16059615
=1.5946

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
=(-237.064 - -92.753 - -81.314) / 1174.8
=-0.0536

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.

InterOil Corp has a M-score of -1.24 signals that the company is likely to 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.

InterOil Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.25580.76830.46551.89350.68771.6891.1930.5758588.0590.585
GMI 0.76970.46172.1060.24971.19611.25131.49120.58490.10041
AQI 2.3350.48020.93978.40380.75891.16881.53171.32940.26010.9369
SGI 1.07661.21691.4590.75351.16441.38661.18021.06030.00941.7542
DEPI 1.05251.00181.051.10121.2170.90131.15321.0110.78233.8074
SGAI 1.25341.52610.69871.20290.9730.99870.59010.996116.20780.4966
LVGI 1.13240.96890.96230.47670.83831.0971.16431.18820.45191.5877
TATA -0.08250.0044-0.1108-0.0603-0.0328-0.06210.0257-0.05840.0479-0.0277
M-score -2.23-3.05-2.450.58-2.69-1.63-1.51-3.24516.521.32

InterOil Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.01812.45980.15053.2007148.04741.45823.82431.12050.5852.1882
GMI 9.3420.40610.40610.40610.10711111
AQI 1.32944.96665.69360.45360.26010.05850.05160.68290.93690.9467
SGI 33.81530.17970.74861.19680.03736.0229-0.1691-0.06611.75420.4409
DEPI 1.01080.41280.23110.40690.78213.741735.781741.615533.933612.6233
SGAI 0.04579.15732.42681.818942.03630.22710.8571.14340.49662.2809
LVGI 1.18820.90740.32770.32520.45190.51681.55491.8861.58771.5946
TATA -0.0813-0.0447-0.04510.01690.04790.07220.0004-0.0962-0.0277-0.0536
M-score 30.15-2.23-2.23-0.72124.492.9920.940.461.34-1.24
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