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Nokia Oyj (NYSE:NOK)
Beneish M-Score
0.00 (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 signals that the company is a manipulator.

NOK' s 10-Year Beneish M-Score Range
Min: -3.65   Max: 316312.72
Current: 0

-3.65
316312.72

During the past 13 years, the highest Beneish M-Score of Nokia Oyj was 316312.72. The lowest was -3.65. And the median was -2.40.


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 * +0.528 * +0.404 * +0.892 * +0.115 *
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * +4.679 * -0.327 *
=

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $4,180 Mil.
Revenue was 3981.05548038 + 3679.55801105 + -6130.79019074 + 7724.420191 = $9,254 Mil.
Gross Profit was 1751.01488498 + 1679.55801105 + -267.029972752 + 2448.84038199 = $5,612 Mil.
Total Current Assets was $19,742 Mil.
Total Assets was $28,031 Mil.
Property, Plant and Equipment(Net PPE) was $769 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $1,163 Mil.
Total Current Liabilities was $11,143 Mil.
Long-Term Debt was $3,294 Mil.
Net Income was 3396.48173207 + -330.110497238 + -34.0599455041 + -124.1473397 = $2,908 Mil.
Non Operating Income was -6.76589986468 + -102.209944751 + 6.81198910082 + 4.09276944065 = $-98 Mil.
Cash Flow from Operations was 1069.01217862 + -190.607734807 + 72.2070844687 + 12.278308322 = $963 Mil.
Accounts Receivable was $4,959 Mil.
Revenue was 4129.58115183 + 4093.87222947 + -8956.11702128 + 9389.10505837 = $8,656 Mil.
Gross Profit was 1799.7382199 + 1608.86571056 + -328.457446809 + 2582.36057069 = $5,663 Mil.
Total Current Assets was $23,404 Mil.
Total Assets was $34,747 Mil.
Property, Plant and Equipment(Net PPE) was $1,749 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,763 Mil.
Selling, General & Admin. Expense(SGA) was $827 Mil.
Total Current Liabilities was $17,211 Mil.
Long-Term Debt was $4,418 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)
=(4179.9729364 / 9254.24349169) / (4959.42408377 / 8656.44141839)
=0.45168175 / 0.57291719
=

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)
=(1679.55801105 / 8656.44141839) / (1751.01488498 / 9254.24349169)
=0.65413797 / 0.60646592
=

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 - (19741.5426252 + 768.606224628) / 28031.1231394) / (1 - (23404.4502618 + 1748.69109948) / 34747.382199)
=0.26830799 / 0.27611406
=

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
=9254.24349169 / 8656.44141839
=

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))
=(1763.29787234 / (1763.29787234 + 1748.69109948)) / (0 / (0 + 768.606224628))
=0.50207956 / 0
=

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)
=(1163.03838357 / 9254.24349169) / (827.063195452 / 8656.44141839)
=0.12567622 / 0.09554309
=

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)
=((3293.64005413 + 11143.4370771) / 28031.1231394) / ((4417.53926702 + 17210.7329843) / 34747.382199)
=0.51503741 / 0.62244321
=

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
=(2908.16394963 - -98.0710860746 - 962.889836604) / 28031.1231394
=0.0729

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 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.84021.0480.91581.53430.84771.04560.91581.04151.9405
GMI 1.08861.08741.07710.96150.98771.05861.07181.02770.814
AQI 0.75571.18921.25891.58311.93480.87650.89030.95851.0698
SGI 1.03611.07651.2881.40810.89320.87050.97060.87910.4105
DEPI 1.16461.16571.00730.79650.88590.88121.03591.04140.9541
SGAI 0.94680.96580.9271.12181.02871.10930.94921.06761.0664
LVGI 1.0181.22481.04791.12781.05081.02421.01411.06231.0569
TATA -0.0633-0.0283-0.0084-0.01910.0198-0.0668-0.0748-0.0629-0.0844
M-score -2.92-2.43-2.20-1.58-2.29-2.93-2.93-2.87-2.64

Nokia Oyj Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.1321.29231.45395.21863.67722.57953.0954
GMI 1.05641.12081.13210.63950.49350.40370.3296
AQI 1.01520.94111.00261.06981.02391.05461.0165
SGI 0.71590.55460.52210.15270.20110.26250.2328
DEPI 0.95650.85490.8870.86290.94931.07281.0237
SGAI 1.22561.22721.19511.17330.72550.66890.6444
LVGI 1.13351.12031.13271.05691.03280.96331.0995
TATA -0.1344-0.1596-0.144-0.0897-0.0545-0.0447-0.0282
M-score -3.29-3.41-3.18-0.00-1.21-2.11-1.68
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