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 -2.36 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of NRG Energy Inc was 0.07. The lowest was -3.56. And the median was -2.41.
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 * 0.8304||+||0.528 * 1.0803||+||0.404 * 1.2425||+||0.892 * 1.37||+||0.115 * 0.9835|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.834||+||4.679 * -0.0426||-||0.327 * 1.0545|
|This Year (Sep14) TTM:||Last Year (Sep13) TTM:|
|Accounts Receivable was $1,554 Mil.|
Revenue was 4569 + 3621 + 3486 + 2795 = $14,471 Mil.
Gross Profit was 1291 + 804 + 753 + 851 = $3,699 Mil.
Total Current Assets was $7,872 Mil.
Total Assets was $40,069 Mil.
Property, Plant and Equipment(Net PPE) was $22,181 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,473 Mil.
Selling, General & Admin. Expense(SGA) was $986 Mil.
Total Current Liabilities was $4,543 Mil.
Long-Term Debt was $19,919 Mil.
Net Income was 168 + -97 + -56 + -297 = $-282 Mil.
Non Operating Income was 2 + -21 + -23 + -94 = $-136 Mil.
Cash Flow from Operations was 744 + -21 + 391 + 447 = $1,561 Mil.
|Accounts Receivable was $1,366 Mil.
Revenue was 3490 + 2929 + 2081 + 2063 = $10,563 Mil.
Gross Profit was 1117 + 878 + 328 + 594 = $2,917 Mil.
Total Current Assets was $7,249 Mil.
Total Assets was $34,863 Mil.
Property, Plant and Equipment(Net PPE) was $20,600 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,344 Mil.
Selling, General & Admin. Expense(SGA) was $863 Mil.
Total Current Liabilities was $4,382 Mil.
Long-Term Debt was $15,802 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)|
|=||(1554 / 14471)||/||(1366 / 10563)|
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)|
|=||(804 / 10563)||/||(1291 / 14471)|
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 - (7872 + 22181) / 40069)||/||(1 - (7249 + 20600) / 34863)|
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))|
|=||(1344 / (1344 + 20600))||/||(1473 / (1473 + 22181))|
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)|
|=||(986 / 14471)||/||(863 / 10563)|
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)|
|=||((19919 + 4543) / 40069)||/||((15802 + 4382) / 34863)|
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|
|=||(-282 - -136||-||1561)||/||40069|
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 -2.36 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