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Portland General Electric Co (NYSE:POR)
Beneish M-Score
-2.76 (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 -2.76 suggests that the company is not a manipulator.

POR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.72   Max: 0.4
Current: -2.76

-3.72
0.4

During the past 13 years, the highest Beneish M-Score of Portland General Electric Co was 0.40. The lowest was -3.72. And the median was -2.79.


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 * 0.9909+0.528 * 0.9474+0.404 * 0.8701+0.892 * 1.017+0.115 * 1.0253
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0212+4.679 * -0.0523-0.327 * 0.8881
=-2.76

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $130 Mil.
Revenue was 487 + 499 + 476 + 450 = $1,912 Mil.
Gross Profit was 272 + 254 + 231 + 236 = $993 Mil.
Total Current Assets was $537 Mil.
Total Assets was $7,344 Mil.
Property, Plant and Equipment(Net PPE) was $6,160 Mil.
Depreciation, Depletion and Amortization(DDA) was $312 Mil.
Selling, General & Admin. Expense(SGA) was $242 Mil.
Total Current Liabilities was $508 Mil.
Long-Term Debt was $2,199 Mil.
Net Income was 61 + 51 + 36 + 35 = $183 Mil.
Non Operating Income was 6 + 7 + 4 + 6 = $23 Mil.
Cash Flow from Operations was 161 + 78 + 191 + 114 = $544 Mil.
Accounts Receivable was $129 Mil.
Revenue was 473 + 500 + 484 + 423 = $1,880 Mil.
Gross Profit was 250 + 239 + 222 + 214 = $925 Mil.
Total Current Assets was $584 Mil.
Total Assets was $7,091 Mil.
Property, Plant and Equipment(Net PPE) was $5,789 Mil.
Depreciation, Depletion and Amortization(DDA) was $301 Mil.
Selling, General & Admin. Expense(SGA) was $233 Mil.
Total Current Liabilities was $809 Mil.
Long-Term Debt was $2,134 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)
=(130 / 1912) / (129 / 1880)
=0.06799163 / 0.06861702
=0.9909

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)
=(254 / 1880) / (272 / 1912)
=0.49202128 / 0.51935146
=0.9474

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 - (537 + 6160) / 7344) / (1 - (584 + 5789) / 7091)
=0.08809913 / 0.10125511
=0.8701

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
=1912 / 1880
=1.017

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))
=(301 / (301 + 5789)) / (312 / (312 + 6160))
=0.04942529 / 0.04820766
=1.0253

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)
=(242 / 1912) / (233 / 1880)
=0.12656904 / 0.12393617
=1.0212

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)
=((2199 + 508) / 7344) / ((2134 + 809) / 7091)
=0.36860022 / 0.41503314
=0.8881

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
=(183 - 23 - 544) / 7344
=-0.0523

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 -2.76 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.82950.8770.94270.91550.87181.03371.06020.95790.97221.0615
GMI 1.07621.00470.99771.31420.86420.93090.97721.05120.93460.9568
AQI 1.09120.88541.28040.7681.05211.00590.90610.89250.91310.9576
SGI 1.05121.14671.00111.03380.98841.01680.99561.00281.04970.9989
DEPI 1.17081.33770.94041.14310.95241.08230.94131.10520.96081.0425
SGAI 0.92870.97841.03140.91131.05131.15260.99521.25120.7981.0628
LVGI 1.00391.04241.01231.00280.9890.94190.92481.04321.12530.877
TATA -0.0138-0.0543-0.0186-0.0603-0.0515-0.0544-0.064-0.0752-0.0541-0.0508
M-score -2.55-2.73-2.52-2.71-2.91-2.72-2.76-2.93-2.79-2.67

Portland General Electric Co Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.95791.07860.85411.06370.97220.79470.97810.85261.06150.9909
GMI 1.05121.03390.98730.95460.93460.94740.96220.95710.95680.9474
AQI 0.89250.86530.79910.74560.91311.02231.07251.1060.95760.8701
SGI 1.00281.01721.03411.07051.04971.02731.030810.99891.017
DEPI 1.10521.06611.06331.02390.96081.0020.98781.00281.04251.0253
SGAI 1.25121.23340.79680.79020.7980.83691.04511.07561.06281.0212
LVGI 1.04321.0561.07961.12961.12531.11460.95410.90330.8770.8881
TATA -0.0752-0.0721-0.0664-0.062-0.0541-0.0515-0.046-0.0481-0.0508-0.0523
M-score -2.93-2.82-2.97-2.78-2.79-2.91-2.67-2.80-2.67-2.76
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