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Nokia Oyj (NYSE:NOK)
Beneish M-Score
-1.90 (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.

Nokia Oyj has a M-score of -2.06 signals that the company is a manipulator.

NOK' s 10-Year Beneish M-Score Range
Min: -3.71   Max: 316312.67
Current: -1.9

-3.71
316312.67

During the past 13 years, the highest Beneish M-Score of Nokia Oyj was 316312.67. The lowest was -3.71. And the median was -2.35.


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 Nokia Oyj 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 * 0.9837+0.528 * 0.9809+0.404 * 1.2702+0.892 * 0.9792+0.115 * 0.5464
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.976+4.679 * 0.0773-0.327 * 0.8801
=-2.06

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $4,043 Mil.
Revenue was 3601.57126824 + 3458.87445887 + 4688.03945746 + 4283.50515464 = $16,032 Mil.
Gross Profit was 1722.78338945 + 1468.61471861 + 2034.52527744 + 1904.63917526 = $7,131 Mil.
Total Current Assets was $14,428 Mil.
Total Assets was $23,224 Mil.
Property, Plant and Equipment(Net PPE) was $882 Mil.
Depreciation, Depletion and Amortization(DDA) was $548 Mil.
Selling, General & Admin. Expense(SGA) was $2,053 Mil.
Total Current Liabilities was $7,514 Mil.
Long-Term Debt was $3,013 Mil.
Net Income was 389.450056117 + 191.558441558 + 547.472256473 + 962.628865979 = $2,091 Mil.
Non Operating Income was -5.61167227834 + 20.5627705628 + -2.46609124538 + -2.57731958763 = $10 Mil.
Cash Flow from Operations was -289.562289562 + -215.367965368 + 276.202219482 + 514.175257732 = $285 Mil.
Accounts Receivable was $4,197 Mil.
Revenue was 3997.2826087 + 3684.6473029 + 4768.17558299 + 3922.56341789 = $16,373 Mil.
Gross Profit was 1758.15217391 + 1677.73167358 + 2027.43484225 + 1679.57276368 = $7,143 Mil.
Total Current Assets was $19,822 Mil.
Total Assets was $28,145 Mil.
Property, Plant and Equipment(Net PPE) was $772 Mil.
Depreciation, Depletion and Amortization(DDA) was $204 Mil.
Selling, General & Admin. Expense(SGA) was $2,149 Mil.
Total Current Liabilities was $11,189 Mil.
Long-Term Debt was $3,307 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)
=(4042.64870932 / 16031.9903392) / (4197.01086957 / 16372.6689125)
=0.25216137 / 0.2563425
=0.9837

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)
=(1468.61471861 / 16372.6689125) / (1722.78338945 / 16031.9903392)
=0.43626922 / 0.44477089
=0.9809

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 - (14427.6094276 + 882.154882155) / 23224.4668911) / (1 - (19822.0108696 + 771.739130435) / 28145.3804348)
=0.34079157 / 0.26830799
=1.2702

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
=16031.9903392 / 16372.6689125
=0.9792

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))
=(204.375638944 / (204.375638944 + 771.739130435)) / (548.112898503 / (548.112898503 + 882.154882155))
=0.20937665 / 0.38322397
=0.5464

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)
=(2053.38792537 / 16031.9903392) / (2148.52283582 / 16372.6689125)
=0.12808066 / 0.13122618
=0.976

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)
=((3013.46801347 + 7514.0291807) / 23224.4668911) / ((3307.06521739 + 11188.8586957) / 28145.3804348)
=0.45329338 / 0.51503741
=0.8801

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
=(2091.10962013 - 9.90768745143 - 285.447222284) / 23224.4668911
=0.0773

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.

Nokia Oyj has a M-score of -2.06 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.

Nokia Oyj Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.0480.91581.53430.84771.04560.91581.04151.94050.63331.1802
GMI 1.08741.07710.96150.98771.05861.07181.02770.8140.85830.9497
AQI 1.18921.25891.58311.93480.87650.89030.95851.06981.63320.7315
SGI 1.03011.34031.36820.92210.87180.93980.9060.39730.86260.9005
DEPI 1.16571.00730.79650.88590.88121.03591.04140.95410.85491.9189
SGAI 0.96580.9271.12181.02871.10930.94921.06761.06640.9820.9761
LVGI 1.22481.04791.12781.05081.02421.01411.06231.05690.80880.9263
TATA -0.0283-0.0084-0.01910.0198-0.0668-0.0748-0.0629-0.0844-0.02490.1044
M-score -2.47-2.15-1.62-2.26-2.92-2.96-2.85-2.65-2.83-1.92

Nokia Oyj Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 3.62432.55566.49630.34750.44720.16791.07980.98680.9837
GMI 0.50060.40740.18121.28511.48633.26790.95010.99790.9809
AQI 1.02391.05461.02511.71230.97171.11340.73150.71991.2702
SGI 0.20190.26140.10931.91991.87775.050.98420.99340.9792
DEPI 0.17020.32240.31024.08532.37282.76100.32040.5464
SGAI 0.73310.67450.32661.27231.3632.76260.97740.95720.976
LVGI 1.03280.96331.06610.77910.82740.68330.92630.95990.8801
TATA -0.0549-0.044-0.0285-0.01080.07250.09760.11280.1450.0773
M-score -1.35-2.211.24-1.49-1.472.07-2.11-1.99-2.06
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