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Portland General Electric Company (NYSE:POR)
Beneish M-Score
-2.89 (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 Company has a M-score of -2.89 suggests that the company is not a manipulator.

POR' s 10-Year Beneish M-Score Range
Min: -3.35   Max: -1.86
Current: -2.89

-3.35
-1.86

During the past 13 years, the highest Beneish M-Score of Portland General Electric Company was -1.86. The lowest was -3.35. And the median was -2.76.


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 Company 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 * 1.0012+0.528 * 1.0512+0.404 * 0.8925+0.892 * 1.0028+0.115 * 1.1052
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2512+4.679 * -0.0752-0.327 * 1.0432
=-2.89

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $250 Mil.
Revenue was 499 + 435 + 403 + 473 = $1,810 Mil.
Gross Profit was 224 + 191 + 183 + 230 = $828 Mil.
Total Current Assets was $591 Mil.
Total Assets was $6,101 Mil.
Property, Plant and Equipment(Net PPE) was $4,880 Mil.
Depreciation, Depletion and Amortization(DDA) was $248 Mil.
Selling, General & Admin. Expense(SGA) was $271 Mil.
Total Current Liabilities was $393 Mil.
Long-Term Debt was $1,916 Mil.
Net Income was 47 + 31 + -22 + 49 = $105 Mil.
Non Operating Income was 7 + 7 + 3 + 3 = $20 Mil.
Cash Flow from Operations was 85 + 180 + 114 + 165 = $544 Mil.
Accounts Receivable was $249 Mil.
Revenue was 463 + 450 + 413 + 479 = $1,805 Mil.
Gross Profit was 212 + 219 + 206 + 231 = $868 Mil.
Total Current Assets was $622 Mil.
Total Assets was $5,670 Mil.
Property, Plant and Equipment(Net PPE) was $4,392 Mil.
Depreciation, Depletion and Amortization(DDA) was $248 Mil.
Selling, General & Admin. Expense(SGA) was $216 Mil.
Total Current Liabilities was $521 Mil.
Long-Term Debt was $1,536 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)
=(250 / 1810) / (249 / 1805)
=0.13812155 / 0.13795014
=1.0012

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)
=(191 / 1805) / (224 / 1810)
=0.48088643 / 0.45745856
=1.0512

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 - (591 + 4880) / 6101) / (1 - (622 + 4392) / 5670)
=0.10326176 / 0.11569665
=0.8925

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
=1810 / 1805
=1.0028

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))
=(248 / (248 + 4392)) / (248 / (248 + 4880))
=0.05344828 / 0.04836193
=1.1052

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)
=(271 / 1810) / (216 / 1805)
=0.14972376 / 0.11966759
=1.2512

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)
=((1916 + 393) / 6101) / ((1536 + 521) / 5670)
=0.37846255 / 0.3627866
=1.0432

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
=(105 - 20 - 544) / 6101
=-0.0752

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 Company has a M-score of -2.89 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 Company Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.98141.13020.89710.88850.97670.93070.91621.04761.02081.0012
GMI 1.0261.70281.07621.00471.23921.05810.86420.93090.97721.0512
AQI 0.6140.99121.09120.88541.28040.7681.05211.00590.90610.8925
SGI 0.78380.99451.05121.14671.00111.03380.98841.01680.99561.0028
DEPI 0.75221.06421.17081.33770.94041.14310.95241.08230.94131.1052
SGAI 1.28451.14140.92870.97841.03140.91131.05131.15260.99521.2512
LVGI 0.90171.09571.00391.04241.01231.00280.9890.94190.92481.0432
TATA -0.0761-0.0855-0.0096-0.0504-0.0186-0.0603-0.0515-0.0544-0.064-0.0752
M-score -3.23-2.45-2.47-2.70-2.36-2.83-2.87-2.71-2.80-2.89

Portland General Electric Company Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.0541.04761.02291.00720.96351.02080.94091.04661.02651.0012
GMI 0.87790.93091.00280.98840.98030.97720.95831.00011.03391.0512
AQI 0.81891.00591.03351.01450.98410.90610.91910.95381.0480.8925
SGI 0.98681.01680.99450.99781.01790.99560.9950.98840.97421.0028
DEPI 0.98661.08231.04140.99610.98180.94130.97611.0231.06291.1052
SGAI 1.11751.15261.14621.15051.05950.99520.98671.20061.24111.2512
LVGI 0.99290.94190.94680.93510.92190.92480.91820.96960.9581.0432
TATA -0.0599-0.0544-0.0513-0.0554-0.0646-0.064-0.0737-0.0732-0.0737-0.0752
M-score -2.88-2.71-2.69-2.74-2.80-2.80-2.91-2.83-2.81-2.89
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