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Gazprom PJSC (OTCPK:OGZPY)
Beneish M-Score
-2.64 (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 -2.64 suggests that the company is not a manipulator.

OGZPY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Max: -2.05
Current: -2.64

-3.23
-2.05

During the past 12 years, the highest Beneish M-Score of Gazprom PJSC was -2.05. The lowest was -3.23. And the median was -2.64.


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 * 1.0225+0.404 * 1.1286+0.892 * 1.0554+0.115 * 0.9966
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8906+4.679 * -0.0256-0.327 * 1.2719
=-2.64

* 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 $9,098 Mil.
Revenue was 19682.7801462 + 19263.0785627 + 25095.2040195 + 24090.8800244 = $88,132 Mil.
Gross Profit was 12392.2046285 + 19263.0785627 + 18528.182095 + 16696.1175396 = $66,880 Mil.
Total Current Assets was $55,367 Mil.
Total Assets was $249,358 Mil.
Property, Plant and Equipment(Net PPE) was $160,525 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,797 Mil.
Selling, General & Admin. Expense(SGA) was $2,879 Mil.
Total Current Liabilities was $30,293 Mil.
Long-Term Debt was $37,576 Mil.
Net Income was -30.4506699147 + 4473.0816078 + 5817.78319123 + -6048.26431181 = $4,212 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 0 + 0 + 10599.817296 + 0 = $10,600 Mil.
Accounts Receivable was $9,462 Mil.
Revenue was 17259.2874543 + 20024.2844093 + 23732.2929354 + 22492.3416565 = $83,508 Mil.
Gross Profit was 10632.3538368 + 20024.2844093 + 17682.1254568 + 16458.4196102 = $64,797 Mil.
Total Current Assets was $45,010 Mil.
Total Assets was $213,948 Mil.
Property, Plant and Equipment(Net PPE) was $143,496 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,164 Mil.
Selling, General & Admin. Expense(SGA) was $3,064 Mil.
Total Current Liabilities was $20,084 Mil.
Long-Term Debt was $25,699 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)
=(9097.95980512 / 88131.9427527) / (9461.72350792 / 83508.2064555)
=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)
=(19263.0785627 / 83508.2064555) / (12392.2046285 / 88131.9427527)
=0.77593791 / 0.75885747
=1.0225

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 - (55366.5499391 + 160524.969549) / 249357.871498) / (1 - (45009.8660171 + 143496.482948) / 213948.294762)
=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
=88131.9427527 / 83508.2064555
=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))
=(5163.77892814 / (5163.77892814 + 143496.482948)) / (5797.00060901 / (5797.00060901 + 160524.969549))
=0.03473544 / 0.03485409
=0.9966

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)
=(2879.49147381 / 88131.9427527) / (3063.58099878 / 83508.2064555)
=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)
=((37576.0200974 + 30292.7375152) / 249357.871498) / ((25699.2844093 + 20083.7241169) / 213948.294762)
=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
=(4212.1498173 - 0 - 10599.817296) / 249357.871498
=-0.0256

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 -2.64 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 0.53670.61981.04250.84130.89060.9115
LVGI 0.95371.05931.26231.22351.27191.0734
TATA 0.04620.0106-0.0349-0.0246-0.02560.0053
M-score -2.05-2.36-2.80-2.58-2.64-2.37
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