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Portland General Electric Co (NYSE:POR)
Beneish M-Score
-2.78 (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 -2.78 suggests that the company is not a manipulator.

POR' s 10-Year Beneish M-Score Range
Min: -3.81   Max: 1.27
Current: -2.78

-3.81
1.27

During the past 13 years, the highest Beneish M-Score of Portland General Electric Co was 1.27. The lowest was -3.81. And the median was -2.81.


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 * 1.0637+0.528 * 0.9546+0.404 * 0.7456+0.892 * 1.0705+0.115 * 1.0239
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7902+4.679 * -0.062-0.327 * 1.1296
=-2.78

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $156 Mil.
Revenue was 484 + 423 + 493 + 499 = $1,899 Mil.
Gross Profit was 222 + 214 + 255 + 224 = $915 Mil.
Total Current Assets was $542 Mil.
Total Assets was $6,657 Mil.
Property, Plant and Equipment(Net PPE) was $5,553 Mil.
Depreciation, Depletion and Amortization(DDA) was $286 Mil.
Selling, General & Admin. Expense(SGA) was $225 Mil.
Total Current Liabilities was $482 Mil.
Long-Term Debt was $2,251 Mil.
Net Income was 39 + 35 + 58 + 47 = $179 Mil.
Non Operating Income was 12 + 10 + 5 + 7 = $34 Mil.
Cash Flow from Operations was 171 + 144 + 158 + 85 = $558 Mil.
Accounts Receivable was $137 Mil.
Revenue was 435 + 403 + 473 + 463 = $1,774 Mil.
Gross Profit was 191 + 183 + 230 + 212 = $816 Mil.
Total Current Assets was $565 Mil.
Total Assets was $5,891 Mil.
Property, Plant and Equipment(Net PPE) was $4,659 Mil.
Depreciation, Depletion and Amortization(DDA) was $246 Mil.
Selling, General & Admin. Expense(SGA) was $266 Mil.
Total Current Liabilities was $380 Mil.
Long-Term Debt was $1,761 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)
=(156 / 1899) / (137 / 1774)
=0.0821485 / 0.07722661
=1.0637

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)
=(214 / 1774) / (222 / 1899)
=0.45997745 / 0.48183254
=0.9546

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 - (542 + 5553) / 6657) / (1 - (565 + 4659) / 5891)
=0.08442241 / 0.11322356
=0.7456

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
=1899 / 1774
=1.0705

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))
=(246 / (246 + 4659)) / (286 / (286 + 5553))
=0.05015291 / 0.04898099
=1.0239

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)
=(225 / 1899) / (266 / 1774)
=0.11848341 / 0.14994363
=0.7902

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)
=((2251 + 482) / 6657) / ((1761 + 380) / 5891)
=0.41054529 / 0.36343575
=1.1296

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
=(179 - 34 - 558) / 6657
=-0.062

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 -2.78 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 1.33882.55150.82950.8770.94270.91550.87181.03371.06020.9579
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 -2.77-1.14-2.53-2.71-2.42-2.75-2.91-2.72-2.76-2.93

Portland General Electric Co Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.99470.93191.06020.92771.04221.09020.95791.07860.85411.0637
GMI 0.98840.98030.97720.95831.00011.03391.05121.03390.98730.9546
AQI 1.01450.98410.90610.91910.95381.0480.89250.86530.79910.7456
SGI 0.99781.01790.99560.9950.98840.97421.00281.01721.03411.0705
DEPI 0.99610.98180.94130.97611.0231.06291.10521.06611.06331.0239
SGAI 1.15051.05950.99520.98671.20061.24111.25121.23340.79680.7902
LVGI 0.93510.92190.92480.91820.96960.9581.04321.0561.07961.1296
TATA -0.0554-0.0646-0.064-0.0737-0.0732-0.0737-0.0752-0.0721-0.0664-0.062
M-score -2.75-2.83-2.76-2.92-2.83-2.75-2.93-2.82-2.97-2.78
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