PWE has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Penn West Petroleum Ltd was -1.77. The lowest was -4.18. And the median was -3.07.
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 West Petroleum Ltd 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 * 1.4614||+||0.528 * 1.1882||+||0.404 * 0.3726||+||0.892 * 0.4869||+||0.115 * 0.467|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.2027||+||4.679 * -0.3017||-||0.327 * 1.3878|
|This Year (Dec15) TTM:||Last Year (Dec14) TTM:|
|Accounts Receivable was $112 Mil.|
Revenue was 220.958214833 + 284.185134931 + 305.701577032 + 282.136630211 = $1,093 Mil.
Gross Profit was 99.9051994458 + 140.208050656 + 140.719773554 + 115.707719131 = $497 Mil.
Total Current Assets was $222 Mil.
Total Assets was $4,320 Mil.
Property, Plant and Equipment(Net PPE) was $3,929 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,804 Mil.
Selling, General & Admin. Expense(SGA) was $76 Mil.
Total Current Liabilities was $457 Mil.
Long-Term Debt was $1,253 Mil.
Net Income was -1171.15146212 + -575.908337102 + -22.6445612616 + -196.544618799 = $-1,966 Mil.
Non Operating Income was -544.009334208 + -95.7334539424 + -22.6445612616 + -133.935647488 = $-796 Mil.
Cash Flow from Operations was 19.6893458762 + 44.4745967134 + -54.1852001617 + 123.632905373 = $134 Mil.
|Accounts Receivable was $158 Mil.
Revenue was 449.184876864 + 581.236944873 + 642.659279778 + 571.557155716 = $2,245 Mil.
Gross Profit was 212.452306625 + 320.588502407 + 392.42843952 + 286.228622862 = $1,212 Mil.
Total Current Assets was $356 Mil.
Total Assets was $8,543 Mil.
Property, Plant and Equipment(Net PPE) was $7,294 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,257 Mil.
Selling, General & Admin. Expense(SGA) was $129 Mil.
Total Current Liabilities was $818 Mil.
Long-Term Debt was $1,618 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(112.302194997 / 1092.98155701)||/||(157.821713493 / 2244.63825723)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(140.208050656 / 2244.63825723)||/||(99.9051994458 / 1092.98155701)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (222.416684898 + 3929.11835485) / 4319.98833224)||/||(1 - (355.532431495 + 7293.61775928) / 8543.18418314)|
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.
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))|
|=||(1256.62472635 / (1256.62472635 + 7293.61775928))||/||(1804.25531946 / (1804.25531946 + 3929.11835485))|
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)|
|=||(75.7091132866 / 1092.98155701)||/||(129.281806973 / 2244.63825723)|
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)|
|=||((1252.82578575 + 456.501130314) / 4319.98833224)||/||((1618.10613944 + 817.724592438) / 8543.18418314)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-1966.24897928 - -796.3229969||-||133.611647801)||/||4319.98833224|
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 West Petroleum Ltd has a M-score of -4.30 suggests that the company will not be a manipulator.
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
Penn West Petroleum Ltd Annual Data
Penn West Petroleum Ltd Quarterly Data