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Nexen, Inc. (NYSE:NXY)
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.

Nexen, Inc. has a M-score of -3.27 suggests that the company is not a manipulator.

NXY' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Nexen, Inc. was 0.00. The lowest was 0.00. And the median was 0.00.


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 Nexen, 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 * 0.8215+0.528 * 1.3136+0.404 * 1.239+0.892 * 1.0361+0.115 * 0.6317
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.4579+4.679 * -0.1014-0.327 * 0.9264
=-3.27

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

This Year (Dec12) TTM:Last Year (Dec11) TTM:
Accounts Receivable was $1,868 Mil.
Revenue was 1713.13131313 + 1542.94478528 + 1738.32684825 + 1736.41851107 = $6,731 Mil.
Gross Profit was 124.242424242 + 1412.06543967 + 1636.18677043 + 1615.69416499 = $4,788 Mil.
Total Current Assets was $3,604 Mil.
Total Assets was $20,744 Mil.
Property, Plant and Equipment(Net PPE) was $16,108 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,569 Mil.
Selling, General & Admin. Expense(SGA) was $1,082 Mil.
Total Current Liabilities was $3,188 Mil.
Long-Term Debt was $4,331 Mil.
Net Income was -6.06060606061 + 60.327198364 + 106.031128405 + 172.032193159 = $332 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 271.717171717 + 526.584867076 + 1127.43190661 + 511.06639839 = $2,437 Mil.
Accounts Receivable was $2,194 Mil.
Revenue was 1654.296875 + 1519.44167498 + 1639.71340839 + 1682.70214944 = $6,496 Mil.
Gross Profit was 1521.484375 + 1409.77068794 + 1525.07676561 + 1614.12487206 = $6,070 Mil.
Total Current Assets was $3,604 Mil.
Total Assets was $19,598 Mil.
Property, Plant and Equipment(Net PPE) was $15,206 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,447 Mil.
Selling, General & Admin. Expense(SGA) was $302 Mil.
Total Current Liabilities was $3,348 Mil.
Long-Term Debt was $4,320 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)
=(1867.67676768 / 6730.82145772) / (2194.3359375 / 6496.15410781)
=0.27748125 / 0.33779001
=0.8215

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)
=(1412.06543967 / 6496.15410781) / (124.242424242 / 6730.82145772)
=0.93446932 / 0.71138253
=1.3136

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 - (3604.04040404 + 16108.0808081) / 20744.4444444) / (1 - (3604.4921875 + 15206.0546875) / 19597.65625)
=0.04976384 / 0.04016344
=1.239

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
=6730.82145772 / 6496.15410781
=1.0361

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))
=(1447.00609521 / (1447.00609521 + 15206.0546875)) / (2569.29572504 / (2569.29572504 + 16108.0808081))
=0.0868913 / 0.13756192
=0.6317

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)
=(1081.79614273 / 6730.82145772) / (301.942209451 / 6496.15410781)
=0.16072275 / 0.04648015
=3.4579

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)
=((4331.31313131 + 3187.87878788) / 20744.4444444) / ((4320.3125 + 3347.65625) / 19597.65625)
=0.36246774 / 0.39126968
=0.9264

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
=(332.329913867 - 0 - 2436.8003438) / 20744.4444444
=-0.1014

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.

Nexen, Inc. has a M-score of -3.27 suggests that the company will not 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.

Nexen, Inc. Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 1.26991.3521.19350.83930.96770.72421.25090.69251.0450.7926
GMI 0.89490.8070.9721.01040.97550.87731.02270.95590.96641.3103
AQI 0.69512.35380.87460.60681.04251.16431.37041.25870.39351.239
SGI 1.34661.19551.2971.12441.41111.01270.8251.04961.09221.0739
DEPI 0.69532.3380.80171.13110.70561.04161.14131.06020.89821.0037
SGAI 1.09374.1051.48930.90050.65510.16072.74450.880.61593.445
LVGI 1.17350.99170.928810.95770.92091.00690.83121.03610.9264
TATA -0.1088-0.0657-0.0679-0.1033-0.0965-0.1193-0.059-0.0526-0.0897-0.1031
M-score -2.72-2.22-2.50-3.12-2.55-3.10-2.81-2.80-3.00-3.22

Nexen, Inc. Quarterly Data

Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12
DSRI 0.6380.64780.83530.75730.87941.02280.84010.77540.78520.8215
GMI 1.04310.9550.93890.94830.95320.96851.00111.00651.01481.3136
AQI 1.36011.25870.40190.32560.36670.39351.12941.2621.19421.239
SGI 1.31541.12211.02040.98120.95011.11591.11221.10381.10491.0361
DEPI 0.90080.86150.86191.40011.59461.1271.17630.60840.56640.6317
SGAI -2.08780.87070.86871.11340.82440.62550.68010.73991.53593.4579
LVGI 0.83110.83120.90550.89610.97251.03610.9140.96840.96560.9264
TATA -0.0572-0.0519-0.0537-0.0823-0.0796-0.0929-0.0804-0.093-0.1073-0.1014
M-score -2.06-2.80-3.10-3.34-3.18-2.98-2.75-2.91-3.13-3.27
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