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.
Penn West Petroleum Ltd has a M-score of -3.43 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Penn West Petroleum Ltd was -1.77. The lowest was -3.34. And the median was -2.76.
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 * 0.7327||+||0.528 * 0.8769||+||0.404 * 1.0988||+||0.892 * 0.8941||+||0.115 * 0.76|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.8829||+||4.679 * -0.086||-||0.327 * 1.0185|
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|Accounts Receivable was $240 Mil.|
Revenue was 985.374771481 + 569.498069498 + 1339.42307692 + 683.022571148 = $3,577 Mil.
Gross Profit was 329.067641682 + 352.316602317 + 1000 + 566.24141315 = $2,248 Mil.
Total Current Assets was $421 Mil.
Total Assets was $11,558 Mil.
Property, Plant and Equipment(Net PPE) was $9,175 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,713 Mil.
Selling, General & Admin. Expense(SGA) was $360 Mil.
Total Current Liabilities was $740 Mil.
Long-Term Debt was $2,188 Mil.
Net Income was -665.447897623 + 26.0617760618 + -38.4615384615 + -95.1913640824 = $-773 Mil.
Non Operating Income was -127.970749543 + 0 + -74.0384615385 + -566.24141315 = $-768 Mil.
Cash Flow from Operations was 300.731261426 + 246.138996139 + 191.346153846 + 251.226692836 = $989 Mil.
|Accounts Receivable was $367 Mil.
Revenue was 1064.51612903 + 550.151975684 + 1735.70019724 + 650.55387714 = $4,001 Mil.
Gross Profit was 212.701612903 + 291.79331307 + 1332.34714004 + 367.573011078 = $2,204 Mil.
Total Current Assets was $712 Mil.
Total Assets was $14,553 Mil.
Property, Plant and Equipment(Net PPE) was $11,594 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,575 Mil.
Selling, General & Admin. Expense(SGA) was $214 Mil.
Total Current Liabilities was $914 Mil.
Long-Term Debt was $2,707 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)|
|=||(240.402193784 / 3577.31848905)||/||(366.935483871 / 4000.92217909)|
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)|
|=||(352.316602317 / 4000.92217909)||/||(329.067641682 / 3577.31848905)|
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 - (421.389396709 + 9174.58866545) / 11557.5868373)||/||(1 - (711.693548387 + 11593.75) / 14553.4274194)|
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))|
|=||(1575.05126894 / (1575.05126894 + 11593.75))||/||(1713.40492782 / (1713.40492782 + 9174.58866545))|
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)|
|=||(360.257783591 / 3577.31848905)||/||(213.987672427 / 4000.92217909)|
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)|
|=||((2188.29981718 + 740.402193784) / 11557.5868373)||/||((2706.65322581 + 914.314516129) / 14553.4274194)|
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|
|=||(-773.039024106 - -768.250624232||-||989.443104247)||/||11557.5868373|
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 -3.43 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