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Portland General Electric Co (NYSE:POR)
Beneish M-Score
-2.93 (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.

Portland General Electric Co has a M-score of -2.93 suggests that the company is not a manipulator.

POR' s 10-Year Beneish M-Score Range
Min: -3.83   Max: 2.26
Current: -2.93

-3.83
2.26

During the past 13 years, the highest Beneish M-Score of Portland General Electric Co was 2.26. The lowest was -3.83. And the median was -2.80.


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 Portland General Electric Co 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 * 0.898+0.528 * 0.9873+0.404 * 0.7991+0.892 * 1.0341+0.115 * 1.0633
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7968+4.679 * -0.0664-0.327 * 1.0796
=-2.93

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $195 Mil.
Revenue was 423 + 493 + 499 + 435 = $1,850 Mil.
Gross Profit was 214 + 255 + 224 + 191 = $884 Mil.
Total Current Assets was $513 Mil.
Total Assets was $6,399 Mil.
Property, Plant and Equipment(Net PPE) was $5,324 Mil.
Depreciation, Depletion and Amortization(DDA) was $272 Mil.
Selling, General & Admin. Expense(SGA) was $220 Mil.
Total Current Liabilities was $457 Mil.
Long-Term Debt was $2,071 Mil.
Net Income was 35 + 58 + 47 + 31 = $171 Mil.
Non Operating Income was 10 + 5 + 7 + 7 = $29 Mil.
Cash Flow from Operations was 144 + 158 + 85 + 180 = $567 Mil.
Accounts Receivable was $210 Mil.
Revenue was 403 + 473 + 463 + 450 = $1,789 Mil.
Gross Profit was 183 + 230 + 212 + 219 = $844 Mil.
Total Current Assets was $627 Mil.
Total Assets was $5,796 Mil.
Property, Plant and Equipment(Net PPE) was $4,532 Mil.
Depreciation, Depletion and Amortization(DDA) was $247 Mil.
Selling, General & Admin. Expense(SGA) was $267 Mil.
Total Current Liabilities was $435 Mil.
Long-Term Debt was $1,686 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)
=(195 / 1850) / (210 / 1789)
=0.10540541 / 0.11738401
=0.898

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)
=(255 / 1789) / (214 / 1850)
=0.47177194 / 0.47783784
=0.9873

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 - (513 + 5324) / 6399) / (1 - (627 + 4532) / 5796)
=0.08782622 / 0.10990338
=0.7991

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
=1850 / 1789
=1.0341

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))
=(247 / (247 + 4532)) / (272 / (272 + 5324))
=0.05168445 / 0.04860615
=1.0633

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)
=(220 / 1850) / (267 / 1789)
=0.11891892 / 0.14924539
=0.7968

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)
=((2071 + 457) / 6399) / ((1686 + 435) / 5796)
=0.39506173 / 0.36594203
=1.0796

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
=(171 - 29 - 567) / 6399
=-0.0664

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.

Portland General Electric Co has a M-score of -2.93 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.

Portland General Electric Co Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.02111.13020.89710.88850.97670.93070.91621.04761.02081.0012
GMI 1.02251.70281.07621.00470.99771.31420.86420.93090.97721.0512
AQI 0.77290.99121.09120.88541.54810.63521.05211.00590.90610.8925
SGI 0.82990.99451.05121.14671.00111.03380.98841.01680.99561.0028
DEPI 0.94981.06421.17081.33770.94041.14310.95241.08230.94131.1052
SGAI 1.2051.14140.92870.97841.03140.91131.05131.15260.99521.2512
LVGI 0.90961.09571.00391.04241.06120.95670.9890.94190.92481.0432
TATA -0.0761-0.0855-0.0096-0.0504-0.0163-0.0603-0.0515-0.0544-0.064-0.0752
M-score -3.06-2.45-2.47-2.70-2.39-2.73-2.87-2.71-2.80-2.89

Portland General Electric Co Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.02291.00720.96351.02080.94091.04661.02651.00121.05010.898
GMI 1.00280.98840.98030.97720.95831.00011.03391.05121.03390.9873
AQI 1.03351.01450.98410.90610.91910.95381.0480.89250.86530.7991
SGI 0.99450.99781.01790.99560.9950.98840.97421.00281.01721.0341
DEPI 1.04140.99610.98180.94130.97611.0231.06291.10521.06611.0633
SGAI 1.14621.15051.05950.99520.98671.20061.24111.25121.23340.7968
LVGI 0.94680.93510.92190.92480.91820.96960.9581.04321.0561.0796
TATA -0.0513-0.0554-0.0646-0.064-0.0737-0.0732-0.0737-0.0752-0.0721-0.0664
M-score -2.69-2.74-2.80-2.80-2.91-2.83-2.81-2.89-2.84-2.93
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