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OAO Gazprom (OTCPK:OGZPY)
Beneish M-Score
-2.92 (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.

OAO Gazprom has a M-score of -2.92 suggests that the company is not a manipulator.

OGZPY' s 10-Year Beneish M-Score Range
Min: -3.72   Max: -2.4
Current: -2.92

-3.72
-2.4

During the past 8 years, the highest Beneish M-Score of OAO Gazprom was -2.40. The lowest was -3.72. And the median was -2.89.


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 OAO Gazprom 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 * 0.9501+0.528 * 0.9913+0.404 * 0.9084+0.892 * 1.0575+0.115 * 0.9997
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5129+4.679 * -0.0992-0.327 * 1.0593
=-2.92

* 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 $10,291 Mil.
Revenue was 18771.1541646 + 21778.3573439 + 25811.1773472 + 24462.6097036 = $90,823 Mil.
Gross Profit was 11563.7191588 + 26776.8339129 + 20812.7007783 + 23841.9937076 = $82,995 Mil.
Total Current Assets was $48,953 Mil.
Total Assets was $232,690 Mil.
Property, Plant and Equipment(Net PPE) was $156,066 Mil.
Depreciation, Depletion and Amortization(DDA) was $9,405 Mil.
Selling, General & Admin. Expense(SGA) was $2,757 Mil.
Total Current Liabilities was $21,843 Mil.
Long-Term Debt was $27,950 Mil.
Net Income was 1749.89236629 + 3768.35568803 + 3692.78026163 + 4644.61003477 = $13,856 Mil.
Non Operating Income was -4140.96704752 + 3293.54197715 + -2501.05977811 + -202.798476569 = $-3,551 Mil.
Cash Flow from Operations was 21529.3094883 + 0 + 11399.6025832 + 7551.99536347 = $40,481 Mil.
Accounts Receivable was $10,242 Mil.
Revenue was 19946.1169068 + 18325.5671469 + 24200.0496771 + 23409.6207981 = $85,881 Mil.
Gross Profit was 13730.4189435 + 22798.3937738 + 19727.2230502 + 21538.1354529 = $77,794 Mil.
Total Current Assets was $43,427 Mil.
Total Assets was $213,047 Mil.
Property, Plant and Equipment(Net PPE) was $141,731 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,538 Mil.
Selling, General & Admin. Expense(SGA) was $5,083 Mil.
Total Current Liabilities was $20,616 Mil.
Long-Term Debt was $22,422 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)
=(10290.5447922 / 90823.2985594) / (10242.192416 / 85881.3545289)
=0.11330292 / 0.11925979
=0.9501

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)
=(26776.8339129 / 85881.3545289) / (11563.7191588 / 90823.2985594)
=0.90583307 / 0.9138101
=0.9913

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 - (48952.6080477 + 156066.385163) / 232689.584368) / (1 - (43427.2396092 + 141731.495281) / 213047.127008)
=0.11891633 / 0.13090246
=0.9084

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
=90823.2985594 / 85881.3545289
=1.0575

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))
=(8537.5890048 / (8537.5890048 + 141731.495281)) / (9404.55373406 / (9404.55373406 + 156066.385163))
=0.05681534 / 0.05683508
=0.9997

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)
=(2757.26113595 / 90823.2985594) / (5083.06010929 / 85881.3545289)
=0.03035852 / 0.059187
=0.5129

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)
=((27950.4719324 + 21843.0038086) / 232689.584368) / ((22421.9738367 + 20615.7310813) / 213047.127008)
=0.213991 / 0.20201026
=1.0593

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
=(13855.6383507 - -3551.28332505 - 40480.907435) / 232689.584368
=-0.0992

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.

OAO Gazprom has a M-score of -2.92 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.

OAO Gazprom Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.84571.04141.18461.0425
GMI 11.29581.01360.9695
AQI 0.95760.87340.7450.916
SGI 1.20261.28911.02791.1014
DEPI 1.01711.08050.94410.9308
SGAI 0.95496.97661.12120.8252
LVGI 0.86480.98490.98050.9537
TATA -0.0682-0.0336-0.039-0.0385
M-score -2.72-3.25-2.58-2.54

OAO Gazprom Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.04921.04240.92550.9501
GMI 0.82460.8520.86590.9913
AQI 0.77630.9160.90080.9084
SGI 1.10521.10151.0691.0575
DEPI 1.0951.07371.12520.9997
SGAI 1.07780.39720.5280.5129
LVGI 0.88860.95371.04281.0593
TATA -0.0862-0.0859-0.0987-0.0992
M-score -2.89-2.74-2.98-2.92
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