SD 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.
SandRidge Energy Inc has a M-score of -3.75 suggests that the company is not a manipulator.
During the past 11 years, the highest Beneish M-Score of SandRidge Energy Inc was 6.46. The lowest was -9.58. And the median was -2.73.
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 SandRidge Energy Inc 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 * 1.1272||+||0.528 * 0.7307||+||0.404 * 0.7276||+||0.892 * 0.6693||+||0.115 * 1.081|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.5973||+||4.679 * -0.1542||-||0.327 * 1.0688|
|This Year (Mar14) TTM:||Last Year (Mar13) TTM:|
|Accounts Receivable was $294 Mil.|
Revenue was 443.056 + 465.108 + 493.603 + 512.987 = $1,915 Mil.
Gross Profit was 308.233 + 281.371 + 341.473 + 336.084 = $1,267 Mil.
Total Current Assets was $1,526 Mil.
Total Assets was $6,878 Mil.
Property, Plant and Equipment(Net PPE) was $5,252 Mil.
Depreciation, Depletion and Amortization(DDA) was $588 Mil.
Selling, General & Admin. Expense(SGA) was $290 Mil.
Total Current Liabilities was $612 Mil.
Long-Term Debt was $3,195 Mil.
Net Income was -128.015 + 19.08 + -73.193 + -20.436 = $-203 Mil.
Non Operating Income was 2.094 + 19.939 + -1.826 + -0.106 = $20 Mil.
Cash Flow from Operations was 90.451 + 273.623 + 210.324 + 263.226 = $838 Mil.
|Accounts Receivable was $389 Mil.
Revenue was 511.69 + 1338.098 + 532.798 + 478.434 = $2,861 Mil.
Gross Profit was 341.63 + 368.216 + 356.458 + 317.152 = $1,383 Mil.
Total Current Assets was $1,789 Mil.
Total Assets was $7,678 Mil.
Property, Plant and Equipment(Net PPE) was $5,736 Mil.
Depreciation, Depletion and Amortization(DDA) was $700 Mil.
Selling, General & Admin. Expense(SGA) was $271 Mil.
Total Current Liabilities was $782 Mil.
Long-Term Debt was $3,195 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)|
|=||(293.765 / 1914.754)||/||(389.399 / 2861.02)|
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)|
|=||(281.371 / 2861.02)||/||(308.233 / 1914.754)|
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 - (1525.945 + 5252.226) / 6878.257)||/||(1 - (1789.158 + 5735.606) / 7678.311)|
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))|
|=||(700.117 / (700.117 + 5735.606))||/||(587.713 / (587.713 + 5252.226))|
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)|
|=||(289.519 / 1914.754)||/||(270.825 / 2861.02)|
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)|
|=||((3195.036 + 612.406) / 6878.257)||/||((3194.543 + 782.253) / 7678.311)|
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|
|=||(-202.564 - 20.101||-||837.624)||/||6878.257|
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.
SandRidge Energy Inc has a M-score of -3.75 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
SandRidge Energy Inc Annual Data
SandRidge Energy Inc Quarterly Data