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.
During the past 13 years, the highest Beneish M-Score of SandRidge Energy Inc was 6.46. The lowest was -11.38. And the median was -3.21.
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 * 0.7938||+||0.528 * 1.2568||+||0.404 * 0.1674||+||0.892 * 0.433||+||0.115 * 0.8587|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 3.2915||+||4.679 * -1.12||-||0.327 * 0.0362|
* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.
|This Year (Jun16) TTM:||Last Year (Jun15) TTM:|
|Accounts Receivable was $81.7 Mil.|
Revenue was 99.421 + 90.332 + 143.642 + 180.152 = $513.5 Mil.
Gross Profit was 53.387 + 35.99 + 69.492 + 92.66 = $251.5 Mil.
Total Current Assets was $753.9 Mil.
Total Assets was $2,240.9 Mil.
Property, Plant and Equipment(Net PPE) was $1,475.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $215.1 Mil.
Selling, General & Admin. Expense(SGA) was $180.9 Mil.
Total Current Liabilities was $73.8 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -515.911 + -313.226 + -653.698 + -640.412 = $-2,123.2 Mil.
Non Operating Income was -198.993 + 41.484 + 282.561 + 345.962 = $471.0 Mil.
Cash Flow from Operations was 23.603 + -162.644 + 12.651 + 41.892 = $-84.5 Mil.
|Accounts Receivable was $237.7 Mil.
Revenue was 229.607 + 215.308 + 346.881 + 394.107 = $1,185.9 Mil.
Gross Profit was 130.841 + 100.362 + 223.103 + 275.666 = $730.0 Mil.
Total Current Assets was $1,377.8 Mil.
Total Assets was $5,435.0 Mil.
Property, Plant and Equipment(Net PPE) was $3,886.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $476.8 Mil.
Selling, General & Admin. Expense(SGA) was $126.9 Mil.
Total Current Liabilities was $551.3 Mil.
Long-Term Debt was $4,395.6 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)|
|=||(81.718 / 513.547)||/||(237.72 / 1185.903)|
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)|
|=||(729.972 / 1185.903)||/||(251.529 / 513.547)|
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 - (753.865 + 1475.252) / 2240.908)||/||(1 - (1377.835 + 3886.401) / 5435.048)|
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))|
|=||(476.806 / (476.806 + 3886.401))||/||(215.122 / (215.122 + 1475.252))|
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)|
|=||(180.937 / 513.547)||/||(126.943 / 1185.903)|
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)|
|=||((0 + 73.816) / 2240.908)||/||((4395.639 + 551.331) / 5435.048)|
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|
|=||(-2123.247 - 471.014||-||-84.498)||/||2240.908|
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 -8.71 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