NFX 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.
Newfield Exploration Company has a M-score of -3.07 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Newfield Exploration Company was -1.83. The lowest was -4.48. And the median was -3.04.
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 Newfield Exploration Company 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 * 0.8871||+||0.528 * 0.9697||+||0.404 * 0.8547||+||0.892 * 1.1822||+||0.115 * 1.2031|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.882||+||4.679 * -0.129||-||0.327 * 1.0566|
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|Accounts Receivable was $474 Mil.|
Revenue was 498 + 486 + 435 + 651 = $2,070 Mil.
Gross Profit was 369 + 363 + 307 + 413 = $1,452 Mil.
Total Current Assets was $901 Mil.
Total Assets was $9,321 Mil.
Property, Plant and Equipment(Net PPE) was $8,275 Mil.
Depreciation, Depletion and Amortization(DDA) was $930 Mil.
Selling, General & Admin. Expense(SGA) was $220 Mil.
Total Current Liabilities was $1,290 Mil.
Long-Term Debt was $3,694 Mil.
Net Income was 17 + 27 + 111 + -8 = $147 Mil.
Non Operating Income was -36 + -98 + 119 + -81 = $-96 Mil.
Cash Flow from Operations was 350 + 485 + 251 + 359 = $1,445 Mil.
|Accounts Receivable was $452 Mil.
Revenue was 352 + 371 + 350 + 678 = $1,751 Mil.
Gross Profit was 237 + 254 + 232 + 468 = $1,191 Mil.
Total Current Assets was $866 Mil.
Total Assets was $7,912 Mil.
Property, Plant and Equipment(Net PPE) was $6,902 Mil.
Depreciation, Depletion and Amortization(DDA) was $955 Mil.
Selling, General & Admin. Expense(SGA) was $211 Mil.
Total Current Liabilities was $959 Mil.
Long-Term Debt was $3,045 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)|
|=||(474 / 2070)||/||(452 / 1751)|
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)|
|=||(363 / 1751)||/||(369 / 2070)|
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 - (901 + 8275) / 9321)||/||(1 - (866 + 6902) / 7912)|
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))|
|=||(955 / (955 + 6902))||/||(930 / (930 + 8275))|
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)|
|=||(220 / 2070)||/||(211 / 1751)|
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)|
|=||((3694 + 1290) / 9321)||/||((3045 + 959) / 7912)|
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|
|=||(147 - -96||-||1445)||/||9321|
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.
Newfield Exploration Company has a M-score of -3.07 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
Newfield Exploration Company Annual Data
Newfield Exploration Company Quarterly Data