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Penn Virginia Corp (NYSE:PVA)
Beneish M-Score
-4.66 (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 -4.66 suggests that the company is not a manipulator.

PVA' s 10-Year Beneish M-Score Range
Min: -5.07   Max: 2.11
Current: -4.66

-5.07
2.11

During the past 13 years, the highest Beneish M-Score of Penn Virginia Corp was 2.11. The lowest was -5.07. And the median was -2.83.


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 * 1.2608+0.528 * 1.0155+0.404 * 0.9645+0.892 * 0.8201+0.115 * 0.7352
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8469+4.679 * -0.4618-0.327 * 1.2662
=-4.66

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $104.6 Mil.
Revenue was 83.616 + 74.527 + 102.151 + 205.396 = $465.7 Mil.
Gross Profit was 66.326 + 55.46 + 107.547 + 177.517 = $406.9 Mil.
Total Current Assets was $197.8 Mil.
Total Assets was $2,112.6 Mil.
Property, Plant and Equipment(Net PPE) was $1,888.9 Mil.
Depreciation, Depletion and Amortization(DDA) was $332.9 Mil.
Selling, General & Admin. Expense(SGA) was $40.9 Mil.
Total Current Liabilities was $197.9 Mil.
Long-Term Debt was $1,264.4 Mil.
Net Income was -80.129 + -57.165 + -417.694 + 89.661 = $-465.3 Mil.
Non Operating Income was -17.211 + 21.761 + 157.15 + 66.743 = $228.4 Mil.
Cash Flow from Operations was 52.729 + 45.552 + 82.274 + 101.257 = $281.8 Mil.
Accounts Receivable was $101.2 Mil.
Revenue was 139.361 + 189.865 + 117.002 + 121.613 = $567.8 Mil.
Gross Profit was 123.432 + 176.5 + 100.319 + 103.52 = $503.8 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.



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)
=(104.636 / 465.69) / (101.193 / 567.841)
=0.22469024 / 0.17820658
=1.2608

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)
=(55.46 / 567.841) / (66.326 / 465.69)
=0.88716912 / 0.87364985
=1.0155

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 - (197.83 + 1888.892) / 2112.59) / (1 - (347.073 + 2207.754) / 2587.68)
=0.01224469 / 0.01269593
=0.9645

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
=465.69 / 567.841
=0.8201

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))
=(273.313 / (273.313 + 2207.754)) / (332.881 / (332.881 + 1888.892))
=0.11015946 / 0.14982674
=0.7352

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)
=(40.926 / 465.69) / (58.927 / 567.841)
=0.0878825 / 0.10377377
=0.8469

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)
=((1264.363 + 197.889) / 2112.59) / ((1130 + 284.552) / 2587.68)
=0.69216081 / 0.54664874
=1.2662

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
=(-465.327 - 228.443 - 281.812) / 2112.59
=-0.4618

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 -4.66 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 1.12770.93271.140.58211.25251.85790.83210.83892.2690.6609
GMI 1.79770.98210.8640.97891.09390.64610.95441.09670.85590.9338
AQI 1.67870.70040.9711.50481.11270.15470.81651.21051.14772.0691
SGI 2.951.11881.13131.43130.66770.31211.20271.03641.36051.4758
DEPI 1.0511.11891.01580.89830.81971.18480.87370.78351.0810.7001
SGAI 0.47421.21021.19450.7771.60842.3380.68830.91640.86470.6149
LVGI 1.30330.95861.22181.00040.97930.71641.30360.93241.60081.0405
TATA -0.1196-0.1314-0.097-0.103-0.1402-0.1082-0.138-0.2057-0.1415-0.3844
M-score -0.49-3.19-2.88-2.74-3.22-3.46-3.26-3.41-1.83-3.75

Penn Virginia Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.68972.16891.7182.2692.0310.47910.3950.66090.35091.2608
GMI 1.15881.12281.09280.85240.77840.82220.84480.91381.00071.0155
AQI 1.04930.98861.21711.14771.25890.75860.88312.06911.16860.9645
SGI 0.98171.07291.22931.36051.70331.62821.65951.47580.9690.8201
DEPI 0.85311.09671.0671.0811.01950.81270.89940.70010.71210.7352
SGAI 0.96651.30371.1821.11460.98960.56360.53350.47710.60660.8469
LVGI 0.95651.23991.40751.60081.47711.00460.82921.04051.10351.2662
TATA -0.1877-0.1413-0.1761-0.1415-0.1306-0.1282-0.0882-0.3844-0.4319-0.4618
M-score -3.55-2.06-2.46-1.88-1.68-3.14-2.87-3.74-5.06-4.66
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