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SandRidge Energy Inc (NYSE:SD)
Beneish M-Score
-8.30 (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.

SandRidge Energy Inc has a M-score of -8.30 suggests that the company is not a manipulator.

SD' s Beneish M-Score Range Over the Past 10 Years
Min: -11.37   Max: 6.46
Current: -8.3

-11.37
6.46

During the past 13 years, the highest Beneish M-Score of SandRidge Energy Inc was 6.46. The lowest was -11.37. And the median was -3.34.


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 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 * 0.6888+0.528 * 1.1167+0.404 * 0.1725+0.892 * 0.4501+0.115 * 1.0015
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.8605+4.679 * -1.0167-0.327 * 0.0746
=-8.30

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $61.4 Mil.
Revenue was 104.056 + 99.421 + 90.332 + 143.642 = $437.5 Mil.
Gross Profit was 61.575 + 53.387 + 35.99 + 69.492 = $220.4 Mil.
Total Current Assets was $737.8 Mil.
Total Assets was $1,886.5 Mil.
Property, Plant and Equipment(Net PPE) was $1,136.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $171.1 Mil.
Selling, General & Admin. Expense(SGA) was $175.8 Mil.
Total Current Liabilities was $152.0 Mil.
Long-Term Debt was $0.0 Mil.
Net Income was -404.337 + -515.911 + -313.226 + -653.698 = $-1,887.2 Mil.
Non Operating Income was -43.652 + -198.993 + 41.484 + 283.33 = $82.2 Mil.
Cash Flow from Operations was 75.002 + 23.603 + -162.644 + 12.651 = $-51.4 Mil.
Accounts Receivable was $198.2 Mil.
Revenue was 180.152 + 229.607 + 215.308 + 346.881 = $971.9 Mil.
Gross Profit was 92.66 + 130.841 + 100.362 + 223.103 = $547.0 Mil.
Total Current Assets was $1,109.0 Mil.
Total Assets was $4,103.1 Mil.
Property, Plant and Equipment(Net PPE) was $2,835.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $427.7 Mil.
Selling, General & Admin. Expense(SGA) was $136.6 Mil.
Total Current Liabilities was $496.5 Mil.
Long-Term Debt was $3,937.0 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)
=(61.446 / 437.451) / (198.205 / 971.948)
=0.14046373 / 0.20392552
=0.6888

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)
=(546.966 / 971.948) / (220.444 / 437.451)
=0.56275233 / 0.50392844
=1.1167

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 - (737.835 + 1136.062) / 1886.504) / (1 - (1108.997 + 2835.086) / 4103.082)
=0.00668273 / 0.03875111
=0.1725

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
=437.451 / 971.948
=0.4501

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))
=(427.7 / (427.7 + 2835.086)) / (171.091 / (171.091 + 1136.062))
=0.13108429 / 0.13088827
=1.0015

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)
=(175.849 / 437.451) / (136.587 / 971.948)
=0.40198559 / 0.14052912
=2.8605

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 + 152.003) / 1886.504) / ((3936.994 + 496.54) / 4103.082)
=0.08057391 / 1.08053751
=0.0746

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
=(-1887.172 - 82.169 - -51.388) / 1886.504
=-1.0167

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 -8.30 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 local exchange's currency.

SandRidge Energy Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.68860.54481.70410.98130.70182.09020.40991.1151.6016
GMI 1.00790.96871.26480.87980.9170.961.02660.95091.3476
AQI 0.55641.84030.96491.88651.01440.27461.02681.66070.1549
SGI 1.74491.74450.50011.57641.51891.3671.02520.78590.4932
DEPI 0.3740.66461.1981.36010.97390.93260.76041.23320.5216
SGAI 0.20741.01481.83291.13620.5451.18941.33360.47312.4783
LVGI 0.70452.13551.33610.65260.86050.98580.96141.02052.4967
TATA -0.0859-0.5536-0.7537-0.0369-0.0508-0.0782-0.1761-0.0512-1.6134
M-score -2.52-4.91-5.91-1.73-2.45-1.87-3.87-2.45-10.88

SandRidge Energy Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.95561.03881.1151.51341.06841.03461.60160.48690.79380.6888
GMI 0.96560.95870.95091.0061.11111.22641.34761.28681.25681.1167
AQI 0.54360.72921.66071.96392.66952.9090.15490.23320.16740.1725
SGI 0.84620.8140.78590.69510.66760.57960.49320.48360.4330.4501
DEPI 1.17651.21571.23321.21340.820.61930.52160.57510.85871.0015
SGAI 0.45790.43440.47310.59861.28341.77472.47833.23163.29152.8605
LVGI 1.07791.04231.02051.18391.60531.95022.49672.51620.03620.0746
TATA -0.1356-0.0931-0.0518-0.21-0.4995-0.9097-1.6134-1.4692-1.1178-1.0167
M-score -3.41-3.07-2.46-2.84-4.58-6.68-10.88-11.37-8.70-8.30
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