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Portland General Electric Co (NYSE:POR)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

POR' s 10-Year Beneish M-Score Range
Min: -3.6   Max: 3.12
Current: -2.91

-3.6
3.12

During the past 13 years, the highest Beneish M-Score of Portland General Electric Co was 3.12. The lowest was -3.60. And the median was -2.83.


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 * 0.7947+0.528 * 0.9474+0.404 * 1.0223+0.892 * 1.0273+0.115 * 1.002
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8369+4.679 * -0.0515-0.327 * 1.1146
=-2.91

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 50 + 43 + 39 + 35 = $167 Mil.
Non Operating Income was 5 + 11 + 12 + 10 = $38 Mil.
Cash Flow from Operations was 134 + 45 + 171 + 144 = $494 Mil.
Accounts Receivable was $158 Mil.
Revenue was 493 + 499 + 435 + 403 = $1,830 Mil.
Gross Profit was 255 + 224 + 191 + 183 = $853 Mil.
Total Current Assets was $549 Mil.
Total Assets was $6,169 Mil.
Property, Plant and Equipment(Net PPE) was $5,009 Mil.
Depreciation, Depletion and Amortization(DDA) was $261 Mil.
Selling, General & Admin. Expense(SGA) was $271 Mil.
Total Current Liabilities was $451 Mil.
Long-Term Debt was $1,846 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)
=(129 / 1880) / (158 / 1830)
=0.06861702 / 0.0863388
=0.7947

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)
=(239 / 1830) / (250 / 1880)
=0.46612022 / 0.49202128
=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 - (584 + 5789) / 7091) / (1 - (549 + 5009) / 6169)
=0.10125511 / 0.09904361
=1.0223

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
=1880 / 1830
=1.0273

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))
=(261 / (261 + 5009)) / (301 / (301 + 5789))
=0.04952562 / 0.04942529
=1.002

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)
=(233 / 1880) / (271 / 1830)
=0.12393617 / 0.14808743
=0.8369

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)
=((2134 + 809) / 7091) / ((1846 + 451) / 6169)
=0.41503314 / 0.3723456
=1.1146

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
=(167 - 38 - 494) / 7091
=-0.0515

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 -2.91 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 2.55150.82950.8770.94270.91550.87181.03371.06020.95790.9722
GMI 1.70281.07621.00471.23921.05810.86420.93090.97721.05120.9346
AQI 0.99121.09120.88541.28040.7681.05211.00590.90610.89250.9131
SGI 0.99451.05121.14671.00111.03380.98841.01680.99561.00281.0497
DEPI 1.06421.17081.33770.94041.14310.95241.08230.94131.10520.9608
SGAI 1.14140.92870.97841.03140.91131.05131.15260.99521.25120.798
LVGI 1.09571.00391.04241.01231.00280.9890.94190.92481.04321.1253
TATA -0.0855-0.0096-0.0504-0.0186-0.0603-0.0515-0.0544-0.064-0.0752-0.0541
M-score -1.14-2.53-2.71-2.40-2.84-2.91-2.72-2.76-2.93-2.79

Portland General Electric Co Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.06020.92771.04221.09020.95791.07860.85411.06370.97220.7947
GMI 0.97720.95831.00011.03391.05121.03390.98730.95460.93460.9474
AQI 0.90610.91910.95381.0480.89250.86530.79910.74560.91311.0223
SGI 0.99560.9950.98840.97421.00281.01721.03411.07051.04971.0273
DEPI 0.94130.97611.0231.06291.10521.06611.06331.02390.96081.002
SGAI 0.99520.98671.20061.24111.25121.23340.79680.79020.7980.8369
LVGI 0.92480.91820.96960.9581.04321.0561.07961.12961.12531.1146
TATA -0.064-0.0737-0.0732-0.0737-0.0752-0.0721-0.0664-0.062-0.0541-0.0515
M-score -2.76-2.92-2.83-2.75-2.93-2.82-2.97-2.78-2.79-2.91
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