NRG has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
NRG Energy Inc has a M-score of -2.41 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of NRG Energy Inc was 1.36. The lowest was -3.62. And the median was -2.36.
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 NRG Energy Inc 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 * 0.8765||+||0.528 * 0.9488||+||0.404 * 1.0114||+||0.892 * 1.4697||+||0.115 * 0.8609|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.7708||+||4.679 * -0.0506||-||0.327 * 1.0094|
|This Year (Mar14) TTM:||Last Year (Mar13) TTM:|
|Accounts Receivable was $1,265 Mil.|
Revenue was 3486 + 2795 + 3490 + 2929 = $12,700 Mil.
Gross Profit was 753 + 853 + 1135 + 870 = $3,611 Mil.
Total Current Assets was $8,383 Mil.
Total Assets was $34,961 Mil.
Property, Plant and Equipment(Net PPE) was $19,644 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,356 Mil.
Selling, General & Admin. Expense(SGA) was $938 Mil.
Total Current Liabilities was $4,225 Mil.
Long-Term Debt was $16,803 Mil.
Net Income was -56 + -312 + 124 + 130 = $-114 Mil.
Non Operating Income was -23 + -94 + -1 + -13 = $-131 Mil.
Cash Flow from Operations was 391 + 447 + 901 + 46 = $1,785 Mil.
|Accounts Receivable was $982 Mil.
Revenue was 2081 + 2063 + 2331 + 2166 = $8,641 Mil.
Gross Profit was 328 + 583 + 591 + 829 = $2,331 Mil.
Total Current Assets was $8,031 Mil.
Total Assets was $35,371 Mil.
Property, Plant and Equipment(Net PPE) was $20,404 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,201 Mil.
Selling, General & Admin. Expense(SGA) was $828 Mil.
Total Current Liabilities was $5,162 Mil.
Long-Term Debt was $15,914 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(1265 / 12700)||/||(982 / 8641)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(853 / 8641)||/||(753 / 12700)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (8383 + 19644) / 34961)||/||(1 - (8031 + 20404) / 35371)|
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.
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))|
|=||(1201 / (1201 + 20404))||/||(1356 / (1356 + 19644))|
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)|
|=||(938 / 12700)||/||(828 / 8641)|
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)|
|=||((16803 + 4225) / 34961)||/||((15914 + 5162) / 35371)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-114 - -131||-||1785)||/||34961|
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.
NRG Energy Inc has a M-score of -2.41 suggests that the company will not be a manipulator.
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
NRG Energy Inc Annual Data
NRG Energy Inc Quarterly Data