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Penn Virginia Corp (NYSE:PVA)
Beneish M-Score
-2.60 (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 -2.60 suggests that the company is not a manipulator.

PVA' s 10-Year Beneish M-Score Range
Min: -4   Max: 2.21
Current: -2.6

-4
2.21

During the past 13 years, the highest Beneish M-Score of Penn Virginia Corp was 2.21. The lowest was -4.00. And the median was -2.74.


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 * 1.104+0.528 * 0.8063+0.404 * 0.7586+0.892 * 1.629+0.115 * 0.8127
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.744+4.679 * -0.1286-0.327 * 1.0046
=-2.60

* 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 + 78.194 + 77.699 = $348.7 Mil.
Gross Profit was 91.07 + 65.519 + 32.206 + 63.777 = $252.6 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 / 348.746)
=0.41950724 / 0.37998142
=1.104

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 / 348.746) / (115.922 / 568.107)
=0.7242291 / 0.89823748
=0.8063

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 / 348.746
=1.629

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 / 348.746)
=0.10370406 / 0.13938798
=0.744

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 -2.60 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 1.10831.01620.93271.140.58211.25251.85791.19360.58492.2676
GMI 1.03841.79770.98210.8640.97891.09390.64610.95441.09670.8058
AQI 2.69271.67870.70040.9711.50481.11270.15470.81651.21051.1477
SGI 1.262.951.11881.13131.43130.66770.31211.20271.03641.3613
DEPI 0.9791.0511.11891.01580.89830.81971.18480.87370.78351.081
SGAI 0.83430.47421.21021.19450.7771.60842.3380.68830.91640.8642
LVGI 1.07381.30330.95861.22181.00040.97930.71641.30360.93241.6008
TATA -0.1338-0.1196-0.1314-0.097-0.103-0.1402-0.1082-0.138-0.2057-0.1415
M-score -2.07-0.59-3.19-2.88-2.74-3.22-3.46-2.93-3.64-1.86

Penn Virginia Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.21891.08660.83930.58490.63951.42131.7182.26761.52391.104
GMI 0.85470.80180.7761.09671.12811.13081.09950.80650.78970.8063
AQI 0.81681.28111.1331.21051.04930.98861.21711.14771.25890.7586
SGI 1.26141.181.10191.03640.98171.07291.22931.36131.70411.629
DEPI 0.72710.76560.77480.78350.85311.09671.0671.0811.01950.8127
SGAI 0.65870.72270.76860.91640.96650.98690.89940.86420.78410.744
LVGI 1.3191.18391.11310.93240.95651.23991.40751.60081.47711.0046
TATA -0.1497-0.1511-0.1792-0.2057-0.1877-0.1409-0.1757-0.1411-0.1306-0.1286
M-score -2.97-2.98-3.46-3.64-3.62-2.69-2.41-1.86-2.10-2.60
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