Switch to:
Gazprom PJSC (OTCPK:OGZPY)
Beneish M-Score
-3.23 (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.

Gazprom PJSC has a M-score of -3.23 suggests that the company is not a manipulator.

OGZPY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Max: -1.18
Current: -3.23

-3.23
-1.18

During the past 11 years, the highest Beneish M-Score of Gazprom PJSC was -1.18. The lowest was -3.23. And the median was -2.90.


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 Gazprom PJSC 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 * 0.9111+0.528 * 0.9923+0.404 * 1.1286+0.892 * 1.0554+0.115 * 1.0059
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8906+4.679 * -0.1484-0.327 * 1.2719
=-3.23

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $9,895 Mil.
Revenue was 21406.9382348 + 20950.4719324 + 27293.475741 + 26201.1756913 = $95,852 Mil.
Gross Profit was 13477.7281007 + 0 + 20151.2005299 + 18158.6520947 = $51,788 Mil.
Total Current Assets was $60,217 Mil.
Total Assets was $271,201 Mil.
Property, Plant and Equipment(Net PPE) was $174,587 Mil.
Depreciation, Depletion and Amortization(DDA) was $10,455 Mil.
Selling, General & Admin. Expense(SGA) was $3,132 Mil.
Total Current Liabilities was $32,946 Mil.
Long-Term Debt was $40,868 Mil.
Net Income was -33.118065905 + 4864.91140917 + 6327.40519954 + -6578.07584037 = $4,581 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 23105.3320086 + 0 + 11528.3325054 + 10193.972512 = $44,828 Mil.
Accounts Receivable was $10,291 Mil.
Revenue was 18771.1541646 + 21778.3573439 + 25811.1773472 + 24462.6097036 = $90,823 Mil.
Gross Profit was 11563.7191588 + 0 + 19231.0316278 + 17900.1324723 = $48,695 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 $3,332 Mil.
Total Current Liabilities was $21,843 Mil.
Long-Term Debt was $27,950 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)
=(9894.91637688 / 95852.0615996) / (10290.5447922 / 90823.2985594)
=0.10323113 / 0.11330292
=0.9111

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)
=(0 / 90823.2985594) / (13477.7281007 / 95852.0615996)
=0.53614969 / 0.54028656
=0.9923

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 - (60216.5093559 + 174586.520947) / 271200.943865) / (1 - (48952.6080477 + 156066.385163) / 232689.584368)
=0.13421013 / 0.11891633
=1.1286

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
=95852.0615996 / 90823.2985594
=1.0554

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))
=(9404.55373406 / (9404.55373406 + 156066.385163)) / (10455.0753436 / (10455.0753436 + 174586.520947))
=0.05683508 / 0.05650122
=1.0059

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)
=(3131.72710714 / 95852.0615996) / (3331.94237457 / 90823.2985594)
=0.03267251 / 0.03668599
=0.8906

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)
=((40867.5774135 + 32946.2990561) / 271200.943865) / ((27950.4719324 + 21843.0038086) / 232689.584368)
=0.27217411 / 0.213991
=1.2719

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
=(4581.12270243 - 0 - 44827.637026) / 271200.943865
=-0.1484

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.

Gazprom PJSC has a M-score of -3.23 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.

Gazprom PJSC Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.92371.04770.94561.09720.84571.04141.18461.04250.8551
GMI 1.97940.39681111.29581.01361.06191.0443
AQI 1.39461.44970.86040.96880.95760.87340.7450.9160.9572
SGI 1.59371.0991.35580.91041.20261.28911.02791.10141.0647
DEPI 0.62521.36821.08011.06981.01711.08050.94410.93080.9883
SGAI 0.72980.06640.82713.46690.95496.97661.12120.82520.8633
LVGI 0.67061.54360.86531.01420.86480.98490.98050.95371.2623
TATA 0.01060.0206-0.0322-0.0076-0.0489-0.0303-0.0208-0.0448-0.1157
M-score -1.18-2.36-2.34-2.94-2.63-3.23-2.50-2.52-3.15

Gazprom PJSC Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.04250.95010.85510.98790.9111
GMI 1.07751.19441.1171.08310.9923
AQI 0.9160.90840.95721.00651.1286
SGI 1.10141.05751.06471.06211.0554
DEPI 0.91530.99971.00280.98811.0059
SGAI 0.53670.61981.04250.84130.8906
LVGI 0.95371.05931.26231.22351.2719
TATA -0.0834-0.114-0.1611-0.1491-0.1484
M-score -2.65-2.90-3.36-3.13-3.23
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK