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Portland General Electric Co (NYSE:POR)
Beneish M-Score
-2.75 (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 -2.75 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: -2.75

-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 * 1.0532+0.528 * 0.9565+0.404 * 0.918+0.892 * 0.9995+0.115 * 1.0105
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0212+4.679 * -0.0561-0.327 * 1.003
=-2.75

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $140 Mil.
Revenue was 484 + 428 + 487 + 499 = $1,898 Mil.
Gross Profit was 235 + 238 + 272 + 254 = $999 Mil.
Total Current Assets was $476 Mil.
Total Assets was $7,455 Mil.
Property, Plant and Equipment(Net PPE) was $6,340 Mil.
Depreciation, Depletion and Amortization(DDA) was $322 Mil.
Selling, General & Admin. Expense(SGA) was $247 Mil.
Total Current Liabilities was $448 Mil.
Long-Term Debt was $2,325 Mil.
Net Income was 34 + 37 + 61 + 51 = $183 Mil.
Non Operating Income was 4 + 9 + 6 + 7 = $26 Mil.
Cash Flow from Operations was 159 + 177 + 161 + 78 = $575 Mil.
Accounts Receivable was $133 Mil.
Revenue was 476 + 450 + 473 + 500 = $1,899 Mil.
Gross Profit was 231 + 236 + 250 + 239 = $956 Mil.
Total Current Assets was $605 Mil.
Total Assets was $7,197 Mil.
Property, Plant and Equipment(Net PPE) was $5,920 Mil.
Depreciation, Depletion and Amortization(DDA) was $304 Mil.
Selling, General & Admin. Expense(SGA) was $242 Mil.
Total Current Liabilities was $465 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)
=(140 / 1898) / (133 / 1899)
=0.07376185 / 0.07003686
=1.0532

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)
=(956 / 1899) / (999 / 1898)
=0.50342285 / 0.52634352
=0.9565

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 - (476 + 6340) / 7455) / (1 - (605 + 5920) / 7197)
=0.08571429 / 0.09337224
=0.918

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
=1898 / 1899
=0.9995

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 + 5920)) / (322 / (322 + 6340))
=0.04884319 / 0.04833383
=1.0105

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)
=(247 / 1898) / (242 / 1899)
=0.13013699 / 0.12743549
=1.0212

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)
=((2325 + 448) / 7455) / ((2204 + 465) / 7197)
=0.37196512 / 0.37084896
=1.003

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
=(183 - 26 - 575) / 7455
=-0.0561

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 -2.75 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 local exchange's 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 1.09120.88541.28040.7681.05211.00590.90610.89250.91310.9429
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 1.00391.04241.01231.00280.9890.94190.92481.04321.12530.8748
TATA -0.0138-0.0543-0.0186-0.0603-0.0515-0.0544-0.064-0.0752-0.0541-0.0509
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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.85411.06370.97220.79470.97810.85261.06150.99091.02551.0532
GMI 0.98730.95460.93460.94740.96220.95710.95680.94740.94330.9565
AQI 0.79910.74560.91311.02231.07251.1060.94290.87010.92680.918
SGI 1.03411.07051.04971.02731.030810.99891.0170.99110.9995
DEPI 1.06331.02390.96081.0020.98781.00281.04251.02531.01851.0105
SGAI 0.79680.79020.7980.83691.04511.07561.06281.02121.03451.0212
LVGI 1.07961.12961.12531.11460.95410.90330.87480.88810.98561.003
TATA -0.0664-0.062-0.0541-0.0515-0.046-0.0481-0.0509-0.0523-0.0602-0.0561
M-score -2.97-2.78-2.79-2.91-2.67-2.80-2.67-2.76-2.80-2.75
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