Switch to:
Penn Virginia Corp (NYSE:PVA)
Beneish M-Score
-2.52 (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 -2.52 suggests that the company is not a manipulator.

PVA' s 10-Year Beneish M-Score Range
Min: -3.93   Max: 2.21
Current: -2.52

-3.93
2.21

During the past 13 years, the highest Beneish M-Score of Penn Virginia Corp was 2.21. The lowest was -3.93. And the median was -2.72.


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 * 1.0905+0.528 * 0.947+0.404 * 0.7586+0.892 * 1.6492+0.115 * 0.8127
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7349+4.679 * -0.1286-0.327 * 1.0046
=-2.52

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $238.3 Mil.
Revenue was 139.361 + 189.865 + 117.268 + 121.613 = $568.1 Mil.
Gross Profit was 115.922 + 167.864 + 122.989 + 103.52 = $510.3 Mil.
Total Current Assets was $347.1 Mil.
Total Assets was $2,587.7 Mil.
Property, Plant and Equipment(Net PPE) was $2,207.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $273.3 Mil.
Selling, General & Admin. Expense(SGA) was $58.9 Mil.
Total Current Liabilities was $284.6 Mil.
Long-Term Debt was $1,130.0 Mil.
Net Income was -100.784 + 19.225 + -2.349 + -98.9 = $-182.8 Mil.
Non Operating Income was -43.674 + -15.661 + 2.407 + -24 = $-80.9 Mil.
Cash Flow from Operations was 32.633 + 66.56 + 36.678 + 95.083 = $231.0 Mil.
Accounts Receivable was $132.5 Mil.
Revenue was 109.655 + 83.198 + 73.912 + 77.699 = $344.5 Mil.
Gross Profit was 91.07 + 65.519 + 72.65 + 63.777 = $293.0 Mil.
Total Current Assets was $169.8 Mil.
Total Assets was $2,445.0 Mil.
Property, Plant and Equipment(Net PPE) was $2,234.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $219.7 Mil.
Selling, General & Admin. Expense(SGA) was $48.6 Mil.
Total Current Liabilities was $188.4 Mil.
Long-Term Debt was $1,142.0 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)
=(238.325 / 568.107) / (132.517 / 344.464)
=0.41950724 / 0.38470493
=1.0905

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)
=(167.864 / 344.464) / (115.922 / 568.107)
=0.85064332 / 0.89823748
=0.947

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 - (347.073 + 2207.754) / 2587.68) / (1 - (169.829 + 2234.256) / 2445.003)
=0.01269593 / 0.01673536
=0.7586

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
=568.107 / 344.464
=1.6492

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))
=(219.684 / (219.684 + 2234.256)) / (273.313 / (273.313 + 2207.754))
=0.08952297 / 0.11015946
=0.8127

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)
=(58.915 / 568.107) / (48.611 / 344.464)
=0.10370406 / 0.1411207
=0.7349

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)
=((1130 + 284.552) / 2587.68) / ((1142 + 188.38) / 2445.003)
=0.54664874 / 0.54412203
=1.0046

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
=(-182.808 - -80.928 - 230.954) / 2587.68
=-0.1286

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 -2.52 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.10831.01620.93271.140.58211.5011.55031.19360.59292.237
GMI 1.03841.79770.98210.8640.97890.75710.93351.42170.61650.9624
AQI 2.69271.67870.70040.9711.50485.21270.0330.81651.21051.1477
SGI 1.262.951.11881.13131.43130.19271.08181.20271.02241.3799
DEPI 0.9791.0511.11891.01580.89830.75241.29070.87370.78351.081
SGAI 0.83430.47421.21021.19450.7773.46231.08610.68830.92890.8525
LVGI 1.07381.30330.95861.22181.00040.50191.39781.30360.93241.6008
TATA -0.1338-0.1196-0.1314-0.097-0.103-0.1466-0.1082-0.1379-0.2057-0.1415
M-score -2.07-0.59-3.19-2.88-2.74-2.14-2.94-2.68-3.91-1.79

Penn Virginia Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.21891.08660.83930.59290.64831.4391.73692.2371.50331.0905
GMI 1.38351.35981.41710.63640.62680.6470.63630.9330.94310.947
AQI 0.81681.28111.1331.21051.04930.98861.21711.14771.25890.7586
SGI 1.26141.181.10191.02240.96841.05971.21591.37991.72761.6492
DEPI 0.82390.76560.77480.78350.85311.09671.0671.0811.01950.8127
SGAI 0.65870.86450.92281.11131.17720.83530.75740.71260.64370.7349
LVGI 1.3191.18391.11310.93240.95651.23991.40751.60081.47711.0046
TATA -0.1496-0.1509-0.1791-0.2057-0.1878-0.141-0.1758-0.1411-0.1306-0.1286
M-score -2.68-2.71-3.15-3.93-3.92-2.91-2.62-1.78-2.00-2.52
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK