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Penn Virginia Corp (NYSE:PVA)
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.

Penn Virginia Corp has a M-score of -2.79 suggests that the company is not a manipulator.

PVA' s 10-Year Beneish M-Score Range
Min: -3.91   Max: 2.11
Current: -2.79

-3.91
2.11

During the past 13 years, the highest Beneish M-Score of Penn Virginia Corp was 2.11. The lowest was -3.91. 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 Penn Virginia Corp 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 * 0.3905+0.528 * 0.9695+0.404 * 0.8831+0.892 * 1.6785+0.115 * 0.8994
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.5029+4.679 * -0.09-0.327 * 0.8292
=-2.79

* 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 $97.0 Mil.
Revenue was 205.396 + 139.361 + 189.865 + 117.268 = $651.9 Mil.
Gross Profit was 177.517 + 115.922 + 153.332 + 100.585 = $547.4 Mil.
Total Current Assets was $339.0 Mil.
Total Assets was $2,722.4 Mil.
Property, Plant and Equipment(Net PPE) was $2,342.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $282.9 Mil.
Selling, General & Admin. Expense(SGA) was $41.9 Mil.
Total Current Liabilities was $277.6 Mil.
Long-Term Debt was $1,075.0 Mil.
Net Income was 89.661 + -100.784 + 19.225 + -2.349 = $5.8 Mil.
Non Operating Income was 67.806 + -43.674 + -15.661 + 5.253 = $13.7 Mil.
Cash Flow from Operations was 101.257 + 32.633 + 66.56 + 36.678 = $237.1 Mil.
Accounts Receivable was $147.9 Mil.
Revenue was 121.613 + 109.655 + 83.198 + 73.912 = $388.4 Mil.
Gross Profit was 103.52 + 91.07 + 59.56 + 62.016 = $316.2 Mil.
Total Current Assets was $195.8 Mil.
Total Assets was $2,406.4 Mil.
Property, Plant and Equipment(Net PPE) was $2,170.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $232.8 Mil.
Selling, General & Admin. Expense(SGA) was $49.7 Mil.
Total Current Liabilities was $239.0 Mil.
Long-Term Debt was $1,203.0 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)
=(96.963 / 651.89) / (147.92 / 388.378)
=0.14874135 / 0.38086606
=0.3905

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)
=(115.922 / 388.378) / (177.517 / 651.89)
=0.81406774 / 0.83964473
=0.9695

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 - (339.044 + 2342.903) / 2722.379) / (1 - (195.842 + 2170.122) / 2406.436)
=0.01485172 / 0.01681823
=0.8831

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
=651.89 / 388.378
=1.6785

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))
=(232.803 / (232.803 + 2170.122)) / (282.862 / (282.862 + 2342.903))
=0.09688317 / 0.10772556
=0.8994

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)
=(41.914 / 651.89) / (49.654 / 388.378)
=0.06429612 / 0.12784967
=0.5029

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)
=((1075 + 277.638) / 2722.379) / ((1203 + 238.958) / 2406.436)
=0.49685881 / 0.59920895
=0.8292

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
=(5.753 - 13.724 - 237.128) / 2722.379
=-0.09

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.

Penn Virginia Corp 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.

Penn Virginia Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.12770.93271.140.58211.5011.55030.83210.85042.2370
GMI 1.79770.98210.8640.97890.75710.93351.42170.6420.98141.0718
AQI 1.67870.70040.9711.50485.21270.0330.81651.21051.14772.0691
SGI 2.951.11881.13131.43130.19271.08181.20271.02241.37991.4749
DEPI 1.0511.11891.01580.89830.75241.29070.87370.78351.0810.7001
SGAI 0.47421.21021.19450.7773.46231.08610.68830.92890.85250.0455
LVGI 1.30330.95861.22181.00040.50191.39781.30360.93241.60081.0405
TATA -0.1196-0.1314-0.097-0.103-0.1466-0.1082-0.1379-0.2057-0.1415-0.3844
M-score -0.49-3.19-2.88-2.74-2.14-2.94-3.01-3.65-1.78-4.19

Penn Virginia Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.83930.85040.69922.19591.73692.2372.00240.4730.39050
GMI 1.41710.66360.66870.68580.66970.96630.95690.96310.96951.0035
AQI 1.1331.21051.04930.98861.21711.14771.25890.75860.88312.0691
SGI 1.10191.02240.96841.05971.21591.37991.72761.64921.67851.4749
DEPI 0.77480.78350.85311.09671.0671.0811.01950.81270.89940.7001
SGAI 0.92281.11131.17720.83530.75740.71260.47290.53710.50290.3538
LVGI 1.11310.93240.95651.23991.40751.60081.47711.00460.82921.0405
TATA -0.1791-0.2057-0.1878-0.141-0.1754-0.1419-0.1313-0.1294-0.09-0.3839
M-score -3.15-3.67-3.85-2.20-2.60-1.76-1.50-3.05-2.79-4.28
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