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Gazprom PJSC (OTCPK:OGZPY)
Beneish M-Score
-2.44 (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 -2.44 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: -2.44

-3.23
-1.18

During the past 12 years, the highest Beneish M-Score of Gazprom PJSC was -1.18. The lowest was -3.23. And the median was -2.47.


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 * 0.9772+0.528 * 1.0494+0.404 * 1.0354+0.892 * 1.0865+0.115 * 1.0179
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3567+4.679 * 0.0053-0.327 * 1.0734
=-2.44

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $10,872 Mil.
Revenue was 27954.7986225 + 19355.667016 + 18942.94056 + 24678.1404402 = $90,932 Mil.
Gross Profit was 16863.7820033 + 12186.2554275 + 18942.94056 + 18220.2575236 = $66,213 Mil.
Total Current Assets was $59,795 Mil.
Total Assets was $255,308 Mil.
Property, Plant and Equipment(Net PPE) was $164,753 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,822 Mil.
Selling, General & Admin. Expense(SGA) was $418 Mil.
Total Current Liabilities was $31,812 Mil.
Long-Term Debt was $41,860 Mil.
Net Income was 1694.14583021 + -29.9446024854 + 4398.7423267 + 5721.09597245 = $11,784 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 0 + 0 + 0 + 10423.656236 = $10,424 Mil.
Accounts Receivable was $10,241 Mil.
Revenue was 23690.507561 + 16972.4509657 + 19691.4957329 + 23337.8799221 = $83,692 Mil.
Gross Profit was 16418.640515 + 10455.6520437 + 19691.4957329 + 17388.2617158 = $63,954 Mil.
Total Current Assets was $51,821 Mil.
Total Assets was $227,242 Mil.
Property, Plant and Equipment(Net PPE) was $148,978 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,362 Mil.
Selling, General & Admin. Expense(SGA) was $283 Mil.
Total Current Liabilities was $27,788 Mil.
Long-Term Debt was $33,299 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)
=(10872.2263812 / 90931.5466387) / (10240.5599641 / 83692.3341818)
=0.11956496 / 0.12235959
=0.9772

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)
=(12186.2554275 / 83692.3341818) / (16863.7820033 / 90931.5466387)
=0.76415661 / 0.72816572
=1.0494

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 - (59795.2088636 + 164753.421171) / 255308.279683) / (1 - (51821.4553077 + 148977.526576) / 227241.652942)
=0.12048042 / 0.11636366
=1.0354

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
=90931.5466387 / 83692.3341818
=1.0865

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))
=(5361.80565953 / (5361.80565953 + 148977.526576)) / (5821.76972601 / (5821.76972601 + 164753.421171))
=0.03474037 / 0.03413023
=1.0179

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)
=(417.682287768 / 90931.5466387) / (283.365773319 / 83692.3341818)
=0.00459337 / 0.0033858
=1.3567

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)
=((41860.2036233 + 31811.6634227) / 255308.279683) / ((33299.0268004 + 27787.7975745) / 227241.652942)
=0.28856043 / 0.26881878
=1.0734

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
=(11784.0395269 - 0 - 10423.656236) / 255308.279683
=0.0053

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 -2.44 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.92371.04770.94561.09720.84571.04141.18511.0420.85510.9772
GMI 1.97940.396811111.34580.94621.14391.043
AQI 1.39461.44970.86040.96880.95760.87340.7450.9160.95721.0354
SGI 1.59371.0991.35580.91041.20261.28911.02751.10191.06471.0865
DEPI 0.62521.36821.08011.06981.01711.08050.97540.90110.98831.0129
SGAI 0.72980.06640.82713.46690.95490.96517.9810.8380.86330.8659
LVGI 0.67061.54360.86531.01420.86480.98490.98050.95371.26231.0734
TATA 0.01060.0206-0.0322-0.0076-0.0489-0.0273-0.022-0.0453-0.1157-0.0729
M-score -1.18-2.36-2.34-2.94-2.63-2.34-3.51-2.59-3.10-2.73

Gazprom PJSC Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.04250.95010.85510.98790.91110.9772
GMI 1.05741.10031.0491.02561.02251.0494
AQI 0.9160.90840.95721.00651.12861.0354
SGI 1.10141.05751.06471.06211.05541.0865
DEPI 0.93540.98990.9890.97030.99661.0179
SGAI 0.53670.61980.10310.06090.07881.3567
LVGI 0.95371.05931.26231.22351.27191.0734
TATA 0.04620.0106-0.0349-0.0246-0.02560.0053
M-score -2.05-2.36-2.64-2.45-2.50-2.44
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