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Portland General Electric Co (NYSE:POR)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

POR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.8   Max: 0.43
Current: -2.8

-3.8
0.43

During the past 13 years, the highest Beneish M-Score of Portland General Electric Co was 0.43. The lowest was -3.80. 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 * 1.0255+0.528 * 0.9433+0.404 * 0.9268+0.892 * 0.9911+0.115 * 1.0185
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0345+4.679 * -0.0602-0.327 * 0.9856
=-2.80

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $124 Mil.
Revenue was 428 + 487 + 499 + 476 = $1,890 Mil.
Gross Profit was 238 + 272 + 254 + 231 = $995 Mil.
Total Current Assets was $512 Mil.
Total Assets was $7,446 Mil.
Property, Plant and Equipment(Net PPE) was $6,284 Mil.
Depreciation, Depletion and Amortization(DDA) was $319 Mil.
Selling, General & Admin. Expense(SGA) was $243 Mil.
Total Current Liabilities was $442 Mil.
Long-Term Debt was $2,324 Mil.
Net Income was 37 + 61 + 51 + 36 = $185 Mil.
Non Operating Income was 9 + 6 + 7 + 4 = $26 Mil.
Cash Flow from Operations was 177 + 161 + 78 + 191 = $607 Mil.
Accounts Receivable was $122 Mil.
Revenue was 450 + 473 + 500 + 484 = $1,907 Mil.
Gross Profit was 236 + 250 + 239 + 222 = $947 Mil.
Total Current Assets was $646 Mil.
Total Assets was $7,198 Mil.
Property, Plant and Equipment(Net PPE) was $5,874 Mil.
Depreciation, Depletion and Amortization(DDA) was $304 Mil.
Selling, General & Admin. Expense(SGA) was $237 Mil.
Total Current Liabilities was $509 Mil.
Long-Term Debt was $2,204 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)
=(124 / 1890) / (122 / 1907)
=0.06560847 / 0.06397483
=1.0255

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)
=(947 / 1907) / (995 / 1890)
=0.4965915 / 0.52645503
=0.9433

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 - (512 + 6284) / 7446) / (1 - (646 + 5874) / 7198)
=0.08729519 / 0.09419283
=0.9268

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
=1890 / 1907
=0.9911

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))
=(304 / (304 + 5874)) / (319 / (319 + 6284))
=0.04920686 / 0.04831137
=1.0185

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)
=(243 / 1890) / (237 / 1907)
=0.12857143 / 0.12427897
=1.0345

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)
=((2324 + 442) / 7446) / ((2204 + 509) / 7198)
=0.37147462 / 0.37691025
=0.9856

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
=(185 - 26 - 607) / 7446
=-0.0602

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 -2.80 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 1.07621.00471.23921.05810.86420.93090.97721.05120.93460.9568
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 -2.55-2.73-2.40-2.84-2.91-2.72-2.76-2.93-2.79-2.67

Portland General Electric Co Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.07860.85411.06370.97220.79470.97810.85261.06150.99091.0255
GMI 1.03390.98730.95460.93460.94740.96220.95710.95680.94740.9433
AQI 0.86530.79910.74560.91311.02231.07251.1060.95760.87010.9268
SGI 1.01721.03411.07051.04971.02731.030810.99891.0170.9911
DEPI 1.06611.06331.02390.96081.0020.98781.00281.04251.02531.0185
SGAI 1.23340.79680.79020.7980.83691.04511.07561.06281.02121.0345
LVGI 1.0561.07961.12961.12531.11460.95410.90330.8770.88810.9856
TATA -0.0721-0.0664-0.062-0.0541-0.0515-0.046-0.0481-0.0508-0.0523-0.0602
M-score -2.82-2.97-2.78-2.79-2.91-2.67-2.80-2.67-2.76-2.80
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