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Portland General Electric Co (NYSE:POR)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

POR' s 10-Year Beneish M-Score Range
Min: -3.5   Max: -1.1
Current: -2.79

-3.5
-1.1

During the past 13 years, the highest Beneish M-Score of Portland General Electric Co was -1.10. The lowest was -3.50. And the median was -2.77.


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 * 0.9722+0.528 * 0.9346+0.404 * 0.9131+0.892 * 1.0497+0.115 * 0.9608
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.798+4.679 * -0.0541-0.327 * 1.1253
=-2.79

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $149 Mil.
Revenue was 500 + 484 + 423 + 493 = $1,900 Mil.
Gross Profit was 239 + 222 + 214 + 255 = $930 Mil.
Total Current Assets was $699 Mil.
Total Assets was $7,042 Mil.
Property, Plant and Equipment(Net PPE) was $5,679 Mil.
Depreciation, Depletion and Amortization(DDA) was $301 Mil.
Selling, General & Admin. Expense(SGA) was $227 Mil.
Total Current Liabilities was $873 Mil.
Long-Term Debt was $2,126 Mil.
Net Income was 43 + 39 + 35 + 58 = $175 Mil.
Non Operating Income was 11 + 12 + 10 + 5 = $38 Mil.
Cash Flow from Operations was 45 + 171 + 144 + 158 = $518 Mil.
Accounts Receivable was $146 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.



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)
=(149 / 1900) / (146 / 1810)
=0.07842105 / 0.08066298
=0.9722

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)
=(222 / 1810) / (239 / 1900)
=0.45745856 / 0.48947368
=0.9346

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 - (699 + 5679) / 7042) / (1 - (591 + 4880) / 6101)
=0.09429139 / 0.10326176
=0.9131

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
=1900 / 1810
=1.0497

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 + 4880)) / (301 / (301 + 5679))
=0.04836193 / 0.05033445
=0.9608

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)
=(227 / 1900) / (271 / 1810)
=0.11947368 / 0.14972376
=0.798

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)
=((2126 + 873) / 7042) / ((1916 + 393) / 6101)
=0.42587333 / 0.37846255
=1.1253

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
=(175 - 38 - 518) / 7042
=-0.0541

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 -2.79 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.93191.06020.92771.04221.09020.95791.07860.85411.06370.9722
GMI 0.98030.97720.95831.00011.03391.05121.03390.98730.95460.9346
AQI 0.98410.90610.91910.95381.0480.89250.86530.79910.74560.9131
SGI 1.01790.99560.9950.98840.97421.00281.01721.03411.07051.0497
DEPI 0.98180.94130.97611.0231.06291.10521.06611.06331.02390.9608
SGAI 1.05950.99520.98671.20061.24111.25121.23340.79680.79020.798
LVGI 0.92190.92480.91820.96960.9581.04321.0561.07961.12961.1253
TATA -0.0646-0.064-0.0737-0.0732-0.0737-0.0752-0.0721-0.0664-0.062-0.0541
M-score -2.83-2.76-2.92-2.83-2.75-2.93-2.82-2.97-2.78-2.79
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