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Penn Virginia Corporation (NYSE:PVA)
Beneish M-Score
-1.81 (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 Corporation has a M-score of -1.81 signals that the company is a manipulator.

PVA' s 10-Year Beneish M-Score Range
Min: -3.92   Max: -0.57
Current: -1.81

-3.92
-0.57

During the past 13 years, the highest Beneish M-Score of Penn Virginia Corporation was -0.57. The lowest was -3.92. And the median was -2.71.


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 Corporation 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 * 2.2452+0.528 * 0.9293+0.404 * 1.1477+0.892 * 1.3749+0.115 * 1.081
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.922+4.679 * -0.1415-0.327 * 1.6008
=-1.81

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $194.4 Mil.
Revenue was 116.789 + 121.799 + 109.399 + 83.198 = $431.2 Mil.
Gross Profit was 122.51 + 103.706 + 98.574 + 59.56 = $384.4 Mil.
Total Current Assets was $233.7 Mil.
Total Assets was $2,507.1 Mil.
Property, Plant and Equipment(Net PPE) was $2,237.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $245.6 Mil.
Selling, General & Admin. Expense(SGA) was $69.6 Mil.
Total Current Liabilities was $258.1 Mil.
Long-Term Debt was $1,281.0 Mil.
Net Income was -2.349 + -98.9 + -25.438 + -16.383 = $-143.1 Mil.
Non Operating Income was 2.407 + -24 + -20.552 + -7.734 = $-49.9 Mil.
Cash Flow from Operations was 36.678 + 95.083 + 84.136 + 45.615 = $261.5 Mil.
Accounts Receivable was $63.0 Mil.
Revenue was 76.319 + 76.126 + 76.767 + 84.411 = $313.6 Mil.
Gross Profit was 75.057 + 62.204 + 62.992 + 59.536 = $259.8 Mil.
Total Current Assets was $96.5 Mil.
Total Assets was $1,843.0 Mil.
Property, Plant and Equipment(Net PPE) was $1,723.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $206.3 Mil.
Selling, General & Admin. Expense(SGA) was $54.9 Mil.
Total Current Liabilities was $112.0 Mil.
Long-Term Debt was $594.8 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)
=(194.403 / 431.185) / (62.978 / 313.623)
=0.45085752 / 0.20080798
=2.2452

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)
=(103.706 / 313.623) / (122.51 / 431.185)
=0.82834805 / 0.89138073
=0.9293

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 - (233.696 + 2237.304) / 2507.087) / (1 - (96.515 + 1723.359) / 1842.989)
=0.014394 / 0.01254213
=1.1477

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
=431.185 / 313.623
=1.3749

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))
=(206.336 / (206.336 + 1723.359)) / (245.594 / (245.594 + 2237.304))
=0.10692674 / 0.09891425
=1.081

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)
=(69.603 / 431.185) / (54.91 / 313.623)
=0.16142259 / 0.17508282
=0.922

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)
=((1281 + 258.145) / 2507.087) / ((594.759 + 112.025) / 1842.989)
=0.61391767 / 0.38349876
=1.6008

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
=(-143.07 - -49.879 - 261.512) / 2507.087
=-0.1415

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 Corporation has a M-score of -1.81 signals that the company is likely to 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 Corporation 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 Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.1131.19361.21891.08680.84360.59140.64671.43621.71762.2452
GMI 0.71161.42171.38351.361.42330.63610.64090.64270.62950.9293
AQI 0.83570.81650.81681.28111.1331.21051.04930.98861.21711.1477
SGI 1.16351.20271.26141.17971.09621.02490.97071.06171.22961.3749
DEPI 0.89250.87370.82390.76560.77480.78350.85311.09671.0671.081
SGAI 0.77960.68830.65870.86470.92761.10861.17441.10130.98430.922
LVGI 1.1421.30361.3191.18391.11310.93240.95651.23991.40751.6008
TATA -0.125-0.1379-0.1496-0.1509-0.1791-0.2057-0.1878-0.1414-0.1762-0.1415
M-score -3.05-2.68-2.68-2.71-3.15-3.92-3.91-2.96-2.67-1.81
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