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Gazprom PJSC (OTCPK:OGZPY)
Beneish M-Score
-3.15 (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: -3.15

-3.23
-1.18

During the past 9 years, the highest Beneish M-Score of Gazprom PJSC was -1.18. The lowest was -3.23. And the median was -2.52.


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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.94561.09720.84571.04141.18461.04250.8551
GMI 1111.29581.01361.06191.0443
AQI 0.86040.96880.95760.87340.7450.9160.9572
SGI 1.35580.91041.20261.28911.02791.10141.0647
DEPI 1.08011.06981.01711.08050.94410.93080.9883
SGAI 0.82713.46690.95496.97661.12120.82520.8633
LVGI 0.86531.01420.86480.98490.98050.95371.2623
TATA -0.0322-0.0076-0.0489-0.0303-0.0208-0.0448-0.1157
M-score -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
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