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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: -3.81   Max: 316312.72
Current: 0

-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 -2.35.


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 * +0.528 * +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 (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $4,209 Mil.
Revenue was 4283.50515464 + 3997.2826087 + 3684.6473029 + 4768.17558299 = $16,734 Mil.
Gross Profit was 1904.63917526 + 1758.15217391 + 1681.88105118 + 2027.43484225 = $7,372 Mil.
Total Current Assets was $17,659 Mil.
Total Assets was $26,927 Mil.
Property, Plant and Equipment(Net PPE) was $863 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General & Admin. Expense(SGA) was $2,166 Mil.
Total Current Liabilities was $9,499 Mil.
Long-Term Debt was $3,245 Mil.
Net Income was 962.628865979 + 3410.32608696 + -330.567081604 + -34.2935528121 = $4,008 Mil.
Non Operating Income was -2.57731958763 + -6.79347826087 + -102.35131397 + 9.60219478738 = $-102 Mil.
Cash Flow from Operations was 514.175257732 + 1073.36956522 + -190.871369295 + 72.7023319616 = $1,469 Mil.
Accounts Receivable was $4,963 Mil.
Revenue was 3922.56341789 + 4162.26912929 + 4067.35751295 + -8838.58267717 = $3,314 Mil.
Gross Profit was 1679.57276368 + 1813.98416887 + 1598.44559585 + -324.146981627 = $4,768 Mil.
Total Current Assets was $23,514 Mil.
Total Assets was $34,832 Mil.
Property, Plant and Equipment(Net PPE) was $1,553 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,740 Mil.
Selling, General & Admin. Expense(SGA) was $155 Mil.
Total Current Liabilities was $17,853 Mil.
Long-Term Debt was $6,274 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)
=(4208.7628866 / 16733.6106492) / (4962.61682243 / 3313.60738297)
=0.25151553 / 1.4976478
=

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)
=(1758.15217391 / 3313.60738297) / (1904.63917526 / 16733.6106492)
=1.4388716 / 0.44055688
=

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 - (17658.5051546 + 863.402061856) / 26926.5463918) / (1 - (23514.0186916 + 1552.73698264) / 34831.7757009)
=0.31213209 / 0.28034804
=

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
=16733.6106492 / 3313.60738297
=

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))
=(1740.15748031 / (1740.15748031 + 1552.73698264)) / (0 / (0 + 863.402061856))
=0.52845832 / 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)
=(2165.99565833 / 16733.6106492) / (154.858374244 / 3313.60738297)
=0.12943983 / 0.04673407
=

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)
=((3244.84536082 + 9498.71134021) / 26926.5463918) / ((6273.69826435 + 17853.1375167) / 34831.7757009)
=0.47327112 / 0.69266741
=

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
=(4008.09431852 - -102.119917031 - 1469.37578562) / 26926.5463918
=0.0981

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 1.08781.03011.34031.36820.92210.87180.93980.9060.3973
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 -2.87-2.47-2.15-1.62-2.26-2.92-2.96-2.85-2.65

Nokia Oyj Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.26511.41644.95023.62432.55566.4963
GMI 1.1211.13170.650.50060.40740.1812
AQI 0.94111.00261.06981.02391.05461.0251
SGI 0.57360.53180.15570.20190.26140.1093
DEPI 0.84720.87150.8610.95771.08271.0308
SGAI 1.22511.19311.17690.73310.67450.3266
LVGI 1.12031.13271.05691.03280.96331.0661
TATA -0.1579-0.1464-0.0912-0.0549-0.044-0.0285
M-score -3.41-3.22-0.25-1.26-2.131.32
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