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Nokia Oyj (NYSE:NOK)
Beneish M-Score
-0.95 (As of Today)

Warning Sign:

Beneish M-Score -0.95 higher than -2.22, which implies that it might have manipulated its financial results.

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 -0.81 signals that the company is a manipulator.

NOK' s Beneish M-Score Range Over the Past 10 Years
Min: -4.55   Max: 316315.23
Current: -0.95

-4.55
316315.23

During the past 13 years, the highest Beneish M-Score of Nokia Oyj was 316315.23. The lowest was -4.55. And the median was -2.42.


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 * 1.8125+0.528 * 1.1022+0.404 * 1.3388+0.892 * 1.0387+0.115 * 4.4804
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.223+4.679 * 0.056-0.327 * 0.7686
=-0.81

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $7,301 Mil.
Revenue was 6123.60801782 + 3931.37254902 + 3407.40740741 + 3601.57126824 = $17,064 Mil.
Gross Profit was 1730.51224944 + 1844.22657952 + 1455.667789 + 1722.78338945 = $6,753 Mil.
Total Current Assets was $26,470 Mil.
Total Assets was $51,955 Mil.
Property, Plant and Equipment(Net PPE) was $2,241 Mil.
Depreciation, Depletion and Amortization(DDA) was $93 Mil.
Selling, General & Admin. Expense(SGA) was $2,617 Mil.
Total Current Liabilities was $14,147 Mil.
Long-Term Debt was $4,449 Mil.
Net Income was -571.269487751 + 1949.89106754 + 170.594837262 + 389.450056117 = $1,939 Mil.
Non Operating Income was 2.2271714922 + 19.6078431373 + -2.24466891134 + -5.61167227834 = $14 Mil.
Cash Flow from Operations was -1762.80623608 + 501.089324619 + 564.534231201 + -289.562289562 = $-987 Mil.
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 $184 Mil.
Selling, General & Admin. Expense(SGA) was $2,060 Mil.
Total Current Liabilities was $8,116 Mil.
Long-Term Debt was $2,979 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)
=(7300.66815145 / 17063.9592425) / (3877.70562771 / 16427.7016797)
=0.4278414 / 0.23604675
=1.8125

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)
=(7165.93134522 / 16427.7016797) / (6753.19000742 / 17063.9592425)
=0.43621022 / 0.39575751
=1.1022

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 - (26469.9331849 + 2240.53452116) / 51955.4565702) / (1 - (15019.4805195 + 844.155844156) / 23825.7575758)
=0.44740226 / 0.33418124
=1.3388

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
=17063.9592425 / 16427.7016797
=1.0387

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))
=(183.853284397 / (183.853284397 + 844.155844156)) / (93.1537598204 / (93.1537598204 + 2240.53452116))
=0.17884402 / 0.03991697
=4.4804

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)
=(2616.59559627 / 17063.9592425) / (2059.79865099 / 16427.7016797)
=0.15334047 / 0.12538569
=1.223

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)
=((4448.77505568 + 14146.9933185) / 51955.4565702) / ((2979.43722944 + 8115.8008658) / 23825.7575758)
=0.35791752 / 0.46568249
=0.7686

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
=(1938.66647317 - 13.9786734398 - -986.744969823) / 51955.4565702
=0.056

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 -0.81 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 0.91581.53190.8471.04810.91581.04150.99031.24091.18021.1621
GMI 1.07710.960.98931.05861.07181.03131.05310.66110.94971.015
AQI 1.25891.58311.93480.87250.89760.95741.03411.68510.73150.6698
SGI 1.34031.37030.92280.86980.93980.9060.77850.44020.90050.8673
DEPI 1.00730.79580.88560.89381.01231.04480.96060.85491.91890.93
SGAI 0.9271.1251.02581.10920.94921.08041.0860.95280.97611.0299
LVGI 1.04791.12781.05081.02421.01411.06231.1140.76730.92630.8586
TATA -0.0091-0.01770.0242-0.0668-0.0748-0.0629-0.0919-0.02490.1070.0955
M-score -2.15-1.62-2.24-2.92-2.96-2.85-3.13-2.71-1.90-2.09

Nokia Oyj Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 2.49713.23043.39263.69980.54530.51970.54480.34451.16561.8125
GMI 0.52260.4890.50490.37091.20271.33471.38041.98760.98291.1022
AQI 1.68511.89862.14621.12270.73151.39241.27021.14180.66981.3388
SGI 0.21880.2650.33540.22921.9491.88611.76792.61640.86461.0387
DEPI 0.72151.6861.40630.7281.3021.15991.22480.97910.97044.4804
SGAI 0.90570.93730.98160.88781.031.00591.02071.14231.05831.223
LVGI 0.76730.67530.72060.66250.92630.960.88010.90380.85860.7686
TATA -0.026-0.01770.07250.09770.11540.14790.08020.04430.09250.056
M-score -1.84-0.88-0.19-0.41-1.46-1.07-1.47-0.85-2.13-0.81
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