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Nokia Oyj (NYSE:NOK)
Beneish M-Score
-1.48 (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 -1.48 signals that the company is a manipulator.

NOK' s Beneish M-Score Range Over the Past 10 Years
Min: -3.87   Max: 316315.23
Current: -1.48

-3.87
316315.23

During the past 13 years, the highest Beneish M-Score of Nokia Oyj was 316315.23. The lowest was -3.87. And the median was -2.21.


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 * 1.3764+0.528 * 1.1402+0.404 * 1.3658+0.892 * 1.3372+0.115 * 0.3261
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2378+4.679 * 0.0422-0.327 * 0.8477
=-1.48

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $7,440 Mil.
Revenue was 6273.03370787 + 6123.60801782 + 3931.37254902 + 3407.40740741 = $19,735 Mil.
Gross Profit was 2278.65168539 + 1730.51224944 + 1844.22657952 + 1455.667789 = $7,309 Mil.
Total Current Assets was $25,281 Mil.
Total Assets was $51,417 Mil.
Property, Plant and Equipment(Net PPE) was $2,207 Mil.
Depreciation, Depletion and Amortization(DDA) was $914 Mil.
Selling, General & Admin. Expense(SGA) was $3,145 Mil.
Total Current Liabilities was $15,721 Mil.
Long-Term Debt was $4,037 Mil.
Net Income was -747.191011236 + -571.269487751 + 1949.89106754 + 170.594837262 = $802 Mil.
Non Operating Income was 1.12359550562 + 2.2271714922 + 19.6078431373 + -2.24466891134 = $21 Mil.
Cash Flow from Operations was -692.134831461 + -1762.80623608 + 501.089324619 + 564.534231201 = $-1,389 Mil.
Accounts Receivable was $4,043 Mil.
Revenue was 3276.09427609 + 3176.40692641 + 4326.75709001 + 3979.3814433 = $14,759 Mil.
Gross Profit was 1507.29517396 + 1281.38528139 + 1766.95437731 + 1676.54639175 = $6,232 Mil.
Total Current Assets was $14,429 Mil.
Total Assets was $23,224 Mil.
Property, Plant and Equipment(Net PPE) was $882 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $1,900 Mil.
Total Current Liabilities was $7,514 Mil.
Long-Term Debt was $3,013 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)
=(7440.4494382 / 19735.4216821) / (4042.64870932 / 14758.6397358)
=0.3770099 / 0.27391743
=1.3764

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)
=(6232.18122441 / 14758.6397358) / (7309.05830336 / 19735.4216821)
=0.42227342 / 0.37035227
=1.1402

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 - (25280.8988764 + 2206.74157303) / 51416.8539326) / (1 - (14428.7317621 + 882.154882155) / 23224.4668911)
=0.4653963 / 0.34074325
=1.3658

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
=19735.4216821 / 14758.6397358
=1.3372

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))
=(93.1537598204 / (93.1537598204 + 882.154882155)) / (913.913565727 / (913.913565727 + 2206.74157303))
=0.09551208 / 0.29285952
=0.3261

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)
=(3145.27061108 / 19735.4216821) / (1900.17406213 / 14758.6397358)
=0.15937185 / 0.12874995
=1.2378

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)
=((4037.07865169 + 15721.3483146) / 51416.8539326) / ((3013.46801347 + 7514.0291807) / 23224.4668911)
=0.38427919 / 0.45329338
=0.8477

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
=(802.025405813 - 20.7139412237 - -1389.31751172) / 51416.8539326
=0.0422

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 -1.48 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.91581.53430.84771.04560.91582.52160.80150.68231.18571.0735
GMI 1.07710.96150.98771.05861.07180.86720.96460.9180.94250.9563
AQI 1.25891.58311.93480.87650.89030.95851.06981.63320.73150.6698
SGI 1.34031.36820.92210.87180.93980.37420.96190.80060.89640.9388
DEPI 1.00730.79650.88590.88121.03591.04140.95410.85491.91890.93
SGAI 0.9271.12181.02871.10930.94921.24760.91250.9390.98251.0699
LVGI 1.04791.12781.05081.02421.01411.06231.05690.80880.92630.8586
TATA -0.009-0.01910.0198-0.0668-0.0748-0.0615-0.0844-0.0250.10720.0955
M-score -2.15-1.62-2.26-2.92-2.96-2.07-3.09-2.80-1.91-2.15

Nokia Oyj Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.3760.48420.18521.04140.96790.98670.96421.16841.74121.3764
GMI 1.37261.58813.5390.91230.97310.96690.95950.97461.07231.1402
AQI 1.71230.97171.11340.73150.71991.271.14180.66981.33881.3658
SGI 1.77431.73394.57981.02051.01280.97620.93480.86261.08131.3372
DEPI 0.71380001.24832.19211.72951.71570.51730.3261
SGAI 1.21271.29892.60631.00860.99571.02961.08621.10291.24871.2378
LVGI 0.77910.82740.68330.92630.95990.88010.90380.85860.76860.8477
TATA -0.01090.07230.09750.11570.14820.08060.04460.09250.0560.0422
M-score -1.93-1.771.52-2.13-1.89-1.87-2.23-2.05-1.31-1.48
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