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Plains Exploration & Production Company (NYSE:PXP)
Beneish M-Score
0.00 (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.

Plains Exploration & Production Company has a M-score of -2.34 suggests that the company is not a manipulator.

PXP' s 10-Year Beneish M-Score Range
Min: 0   Max: 0
Current: 0

During the past 13 years, the highest Beneish M-Score of Plains Exploration & Production Company was 0.00. The lowest was 0.00. And the median was 0.00.


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 Plains Exploration & Production Company 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 * 1.2398+0.528 * 0.9558+0.404 * 0.6602+0.892 * 1.5901+0.115 * 0.9133
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6084+4.679 * -0.0827-0.327 * 1.3523
=-2.34

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

This Year (Mar13) TTM:Last Year (Mar12) TTM:
Accounts Receivable was $563 Mil.
Revenue was 1232.115 + 869.204 + 605.104 + 566.724 = $3,273 Mil.
Gross Profit was 984.972 + 677.82 + 444.707 + 420.46 = $2,528 Mil.
Total Current Assets was $1,760 Mil.
Total Assets was $17,190 Mil.
Property, Plant and Equipment(Net PPE) was $14,709 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,477 Mil.
Selling, General & Admin. Expense(SGA) was $163 Mil.
Total Current Liabilities was $1,069 Mil.
Long-Term Debt was $9,559 Mil.
Net Income was 22.585 + 191.422 + -43.974 + 223.199 = $393 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 818.723 + 284.214 + 415.621 + 295.545 = $1,814 Mil.
Accounts Receivable was $286 Mil.
Revenue was 524.275 + 517.541 + 501.848 + 514.785 = $2,058 Mil.
Gross Profit was 389.868 + 373.977 + 384.098 + 371.646 = $1,520 Mil.
Total Current Assets was $1,388 Mil.
Total Assets was $9,988 Mil.
Property, Plant and Equipment(Net PPE) was $7,966 Mil.
Depreciation, Depletion and Amortization(DDA) was $724 Mil.
Selling, General & Admin. Expense(SGA) was $169 Mil.
Total Current Liabilities was $730 Mil.
Long-Term Debt was $3,837 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)
=(563.313 / 3273.147) / (285.739 / 2058.449)
=0.17210134 / 0.13881277
=1.2398

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)
=(677.82 / 2058.449) / (984.972 / 3273.147)
=0.73822038 / 0.77233286
=0.9558

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 - (1760.185 + 14709.262) / 17190.374) / (1 - (1387.705 + 7966.324) / 9988.489)
=0.04193783 / 0.06351912
=0.6602

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
=3273.147 / 2058.449
=1.5901

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))
=(724.305 / (724.305 + 7966.324)) / (1477.077 / (1477.077 + 14709.262))
=0.08334322 / 0.09125454
=0.9133

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)
=(163.405 / 3273.147) / (168.918 / 2058.449)
=0.0499229 / 0.08206081
=0.6084

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)
=((9559.247 + 1069.451) / 17190.374) / ((3836.551 + 730.29) / 9988.489)
=0.61829359 / 0.45721039
=1.3523

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
=(393.232 - 0 - 1814.103) / 17190.374
=-0.0827

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.

Plains Exploration & Production Company has a M-score of -2.34 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.

Plains Exploration & Production Company Annual Data

Dec03Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12
DSRI 1.08711.09390.86480.70592.15590.30542.97640.79960.88461.4794
GMI 0.89110.98120.9570.97351.02260.94821.15010.90870.94690.9915
AQI 4.10180.54961.00420.89190.95342.38510.48791.85680.44651.4024
SGI 1.61272.20891.4061.07841.24971.88830.49391.30111.27181.3058
DEPI 1.11520.81480.82290.83152.56520.30042.15170.79320.87461.1492
SGAI 1.76230.82821.14870.89540.80580.71042.99650.42591.13040.613
LVGI 0.93670.74261.05040.66681.5061.25570.80661.01211.02761.414
TATA -0.0497-0.1346-0.247-0.0314-0.0443-0.2925-0.0469-0.091-0.0925-0.0592
M-score -0.99-2.04-3.48-2.78-1.36-3.28-1.61-2.45-3.07-1.94

Plains Exploration & Production Company Quarterly Data

Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13
DSRI 0.79961.1071.22010.99860.88460.87070.93760.94391.47941.2398
GMI 0.90870.97171.0020.97870.96640.95960.95430.98920.97150.9558
AQI 1.85681.91761.80661.38270.44650.43620.45551.05041.40240.6602
SGI 1.30111.18481.21871.23331.27181.29391.21211.19331.30581.5901
DEPI 0.79320.84290.90280.94790.87460.84530.77030.7211.14920.9133
SGAI 0.28470.33780.34970.37131.0230.96651.03360.92080.72190.6084
LVGI 1.01211.0491.11271.15121.02761.03881.02131.05071.4141.3523
TATA -0.091-0.0938-0.0856-0.1116-0.0925-0.1105-0.0991-0.0948-0.0603-0.0827
M-score -2.43-2.22-2.09-2.60-3.05-3.13-3.10-2.82-1.97-2.34
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