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Penn Virginia Corp (NYSE:PVA)
Beneish M-Score
-3.72 (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 -3.72 suggests that the company is not a manipulator.

PVA' s 10-Year Beneish M-Score Range
Min: -3.72   Max: -0.46
Current: -3.72

-3.72
-0.46

During the past 13 years, the highest Beneish M-Score of Penn Virginia Corp was -0.46. The lowest was -3.72. And the median was -2.84.


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 * 0.6609+0.528 * 0.9905+0.404 * 2.0691+0.892 * 1.4758+0.115 * 0.7001
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6148+4.679 * -0.3849-0.327 * 1.0405
=-3.72

* 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 $189.6 Mil.
Revenue was 102.151 + 205.396 + 139.361 + 189.865 = $636.8 Mil.
Gross Profit was 107.547 + 177.517 + 115.922 + 160.559 = $561.5 Mil.
Total Current Assets was $335.0 Mil.
Total Assets was $2,226.4 Mil.
Property, Plant and Equipment(Net PPE) was $1,825.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $300.3 Mil.
Selling, General & Admin. Expense(SGA) was $49.0 Mil.
Total Current Liabilities was $312.2 Mil.
Long-Term Debt was $1,110.0 Mil.
Net Income was -417.694 + 89.661 + -100.784 + 19.225 = $-409.6 Mil.
Non Operating Income was 157.15 + 66.743 + -43.674 + -15.661 = $164.6 Mil.
Cash Flow from Operations was 82.274 + 101.257 + 32.633 + 66.56 = $282.7 Mil.
Accounts Receivable was $194.4 Mil.
Revenue was 117.002 + 121.613 + 109.655 + 83.198 = $431.5 Mil.
Gross Profit was 122.723 + 103.52 + 91.07 + 59.56 = $376.9 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 $54.0 Mil.
Total Current Liabilities was $258.1 Mil.
Long-Term Debt was $1,281.0 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)
=(189.627 / 636.773) / (194.403 / 431.468)
=0.29779372 / 0.4505618
=0.6609

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)
=(177.517 / 431.468) / (107.547 / 636.773)
=0.87346686 / 0.88186057
=0.9905

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 - (335.027 + 1825.098) / 2226.434) / (1 - (233.696 + 2237.304) / 2507.087)
=0.0297826 / 0.014394
=2.0691

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
=636.773 / 431.468
=1.4758

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))
=(245.594 / (245.594 + 2237.304)) / (300.299 / (300.299 + 1825.098))
=0.09891425 / 0.14129078
=0.7001

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)
=(48.993 / 636.773) / (53.998 / 431.468)
=0.07693951 / 0.12514949
=0.6148

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)
=((1110 + 312.227) / 2226.434) / ((1281 + 258.145) / 2507.087)
=0.63879145 / 0.61391767
=1.0405

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
=(-409.592 - 164.558 - 282.724) / 2226.434
=-0.3849

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 -3.72 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 1.12770.93271.140.58211.5011.55030.83210.83892.2690.6609
GMI 1.79770.98210.8640.97890.75710.93351.42170.64010.92690.9918
AQI 1.67870.70040.9711.50485.21270.0330.81651.21051.14772.0691
SGI 2.951.11881.13131.43130.19271.08181.20271.03641.36051.4758
DEPI 1.0511.11891.01580.89830.75241.29070.87370.78351.0810.7001
SGAI 0.47421.21021.19450.7773.46231.08610.68830.91640.86470.6149
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 -0.49-3.19-2.88-2.74-2.14-2.94-3.01-3.65-1.80-3.72

Penn Virginia Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.83930.83890.68972.16891.7182.2692.0310.47910.3950.6609
GMI 1.41710.66130.66640.68380.6680.91210.90070.90920.92210.9905
AQI 1.1331.21051.04930.98861.21711.14771.25890.75860.88312.0691
SGI 1.10191.03640.98171.07291.22931.36051.70331.62821.65951.4758
DEPI 0.77480.78350.85311.09671.0671.0811.01950.81270.89940.7001
SGAI 0.92281.09631.16120.8250.74910.72280.65290.74430.7010.6148
LVGI 1.11310.93240.95651.23991.40751.60081.47711.00460.82921.0405
TATA -0.1791-0.2057-0.1878-0.141-0.1754-0.1419-0.1313-0.1294-0.0896-0.3849
M-score -3.15-3.67-3.85-2.21-2.61-1.78-1.56-3.13-2.86-3.72
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