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Nokia Oyj (NYSE:NOK)
Beneish M-Score
-1.68 (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 -1.82 signals that the company is a manipulator.

NOK' s 10-Year Beneish M-Score Range
Min: -3.81   Max: 316312.72
Current: -1.68

-3.81
316312.72

During the past 13 years, the highest Beneish M-Score of Nokia Oyj was 316312.72. The lowest was -3.81. And the median was -2.32.


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 * 0.9868+0.528 * 0.9979+0.404 * 0.7199+0.892 * 0.9934+0.115 * 1.698
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9572+4.679 * 0.1479-0.327 * 0.9599
=-1.82

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $3,878 Mil.
Revenue was 3458.87445887 + 4688.03945746 + 4283.50515464 + 3997.2826087 = $16,428 Mil.
Gross Profit was 1468.61471861 + 2034.52527744 + 1904.63917526 + 1758.15217391 = $7,166 Mil.
Total Current Assets was $15,019 Mil.
Total Assets was $23,826 Mil.
Property, Plant and Equipment(Net PPE) was $844 Mil.
Depreciation, Depletion and Amortization(DDA) was $455 Mil.
Selling, General & Admin. Expense(SGA) was $2,060 Mil.
Total Current Liabilities was $8,116 Mil.
Long-Term Debt was $2,979 Mil.
Net Income was 191.558441558 + 547.472256473 + 962.628865979 + 3410.32608696 = $5,112 Mil.
Non Operating Income was 20.5627705628 + -70.2836004932 + -2.57731958763 + -6.79347826087 = $-59 Mil.
Cash Flow from Operations was -215.367965368 + 276.202219482 + 514.175257732 + 1073.36956522 = $1,648 Mil.
Accounts Receivable was $3,956 Mil.
Revenue was 3684.6473029 + 4768.17558299 + 3922.56341789 + 4162.26912929 = $16,538 Mil.
Gross Profit was 1677.73167358 + 2027.43484225 + 1679.57276368 + 1813.98416887 = $7,199 Mil.
Total Current Assets was $16,124 Mil.
Total Assets was $31,505 Mil.
Property, Plant and Equipment(Net PPE) was $755 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,108 Mil.
Selling, General & Admin. Expense(SGA) was $2,166 Mil.
Total Current Liabilities was $10,826 Mil.
Long-Term Debt was $4,458 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)
=(3877.70562771 / 16427.7016797) / (3955.73997234 / 16537.6554331)
=0.23604675 / 0.23919594
=0.9868

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)
=(2034.52527744 / 16537.6554331) / (1468.61471861 / 16427.7016797)
=0.43529287 / 0.43621022
=0.9979

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 - (15019.4805195 + 844.155844156) / 23825.7575758) / (1 - (16124.4813278 + 755.186721992) / 31504.8409405)
=0.33418124 / 0.46421986
=0.7199

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
=16427.7016797 / 16537.6554331
=0.9934

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))
=(1107.89520118 / (1107.89520118 + 755.186721992)) / (454.959138683 / (454.959138683 + 844.155844156))
=0.59465727 / 0.35020698
=1.698

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)
=(2059.79865099 / 16427.7016797) / (2166.20380405 / 16537.6554331)
=0.12538569 / 0.13098615
=0.9572

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)
=((2979.43722944 + 8115.8008658) / 23825.7575758) / ((4457.81466113 + 10825.7261411) / 31504.8409405)
=0.46568249 / 0.48511722
=0.9599

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
=(5111.98565097 - -59.0916277789 - 1648.37907706) / 23825.7575758
=0.1479

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 -1.82 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 -0.0283-0.0084-0.01910.0198-0.0668-0.0748-0.0629-0.0844-0.02490.107
M-score -2.47-2.15-1.62-2.26-2.92-2.96-2.85-2.65-2.83-1.90

Nokia Oyj Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 4.95023.62432.55566.49630.26880.34750.44720.16791.07980.9868
GMI 0.650.50060.40740.18121.07521.28511.48633.26790.95010.9979
AQI 1.06981.02391.05461.02511.63321.71230.97171.11340.73150.7199
SGI 0.15570.20190.26140.10932.03191.91991.87775.050.98420.9934
DEPI 0.8610.95771.08271.03080.94730.86840.84290.94031.60721.698
SGAI 1.17690.73310.67450.32660.88831.27231.3632.76260.97740.9572
LVGI 1.05691.03280.96331.06610.80880.77910.82740.68330.92630.9599
TATA -0.0912-0.0549-0.044-0.0285-0.0236-0.01080.07250.09760.11540.1479
M-score -0.25-1.26-2.131.32-1.97-1.86-1.651.86-1.92-1.82
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