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 -1.31. The lowest was -3.32. And the median was -2.77.
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 * 0.6951||+||0.528 * 0.782||+||0.404 * 1.1352||+||0.892 * 0.893||+||0.115 * 0.8068|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.6352||+||4.679 * -0.114||-||0.327 * 0.9141|
|This Year (Sep14) TTM:||Last Year (Sep13) TTM:|
|Accounts Receivable was $211 Mil.|
Revenue was 552.17509763 + 636.195752539 + 567.056705671 + 646.616541353 = $2,402 Mil.
Gross Profit was 296.067568795 + 391.505078486 + 286.228622862 + 326.127819549 = $1,300 Mil.
Total Current Assets was $355 Mil.
Total Assets was $10,820 Mil.
Property, Plant and Equipment(Net PPE) was $8,501 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,386 Mil.
Selling, General & Admin. Expense(SGA) was $107 Mil.
Total Current Liabilities was $817 Mil.
Long-Term Debt was $1,750 Mil.
Net Income was -13.6227408955 + 132.040627886 + -80.1080108011 + -634.398496241 = $-596 Mil.
Non Operating Income was -50.8582326764 + 34.1643582641 + -93.6093609361 + -210.526315789 = $-321 Mil.
Cash Flow from Operations was 265.189356098 + 197.599261311 + 199.819981998 + 295.112781955 = $958 Mil.
|Accounts Receivable was $339 Mil.
Revenue was 706.963249516 + 755.577109602 + 616.2109375 + 611.111111111 = $2,690 Mil.
Gross Profit was 355.899419729 + 385.063045587 + 250.9765625 + 146.464646465 = $1,138 Mil.
Total Current Assets was $566 Mil.
Total Assets was $13,715 Mil.
Property, Plant and Equipment(Net PPE) was $10,956 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,397 Mil.
Selling, General & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $715 Mil.
Long-Term Debt was $2,845 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)|
|=||(210.698392517 / 2402.04409719)||/||(339.458413926 / 2689.86240773)|
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)|
|=||(391.505078486 / 2689.86240773)||/||(296.067568795 / 2402.04409719)|
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 - (355.099446009 + 8501.4985015) / 10820.0890019)||/||(1 - (565.764023211 + 10956.4796905) / 13714.7001934)|
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))|
|=||(1397.27861517 / (1397.27861517 + 10956.4796905))||/||(1386.15412999 / (1386.15412999 + 8501.4985015))|
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)|
|=||(106.730197678 / 2402.04409719)||/||(188.150053591 / 2689.86240773)|
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)|
|=||((1750.0681137 + 817.364453728) / 10820.0890019)||/||((2845.26112186 + 714.700193424) / 13714.7001934)|
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|
|=||(-596.088620052 - -320.829551138||-||957.721381363)||/||10820.0890019|
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 -3.38 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