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Schlumberger NV (NYSE:SLB)
Beneish M-Score
-2.69 (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.

Schlumberger NV has a M-score of -2.69 suggests that the company is not a manipulator.

SLB' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -2
Current: -2.69

-3.41
-2

During the past 13 years, the highest Beneish M-Score of Schlumberger NV was -2.00. The lowest was -3.41. And the median was -2.44.


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 Schlumberger NV 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 * 0.9139+0.528 * 0.8992+0.404 * 1.0458+0.892 * 1.1082+0.115 * 0.9799
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9291+4.679 * -0.0434-0.327 * 1.0028
=-2.69

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $11,497 Mil.
Revenue was 11966 + 11651 + 12240 + 10701 = $46,558 Mil.
Gross Profit was 2682 + 2725 + 3528 + 2259 = $11,194 Mil.
Total Current Assets was $26,225 Mil.
Total Assets was $67,100 Mil.
Property, Plant and Equipment(Net PPE) was $15,096 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,666 Mil.
Selling, General & Admin. Expense(SGA) was $416 Mil.
Total Current Liabilities was $13,525 Mil.
Long-Term Debt was $10,393 Mil.
Net Income was 1664 + 1715 + 2095 + 1259 = $6,733 Mil.
Non Operating Income was -60 + -43 + -6 + -33 = $-142 Mil.
Cash Flow from Operations was 3850 + 2510 + 2309 + 1119 = $9,788 Mil.
Accounts Receivable was $11,351 Mil.
Revenue was 11118 + 10542 + 10386 + 9965 = $42,011 Mil.
Gross Profit was 2357 + 2305 + 2267 + 2154 = $9,083 Mil.
Total Current Assets was $24,156 Mil.
Total Assets was $61,547 Mil.
Property, Plant and Equipment(Net PPE) was $14,780 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,500 Mil.
Selling, General & Admin. Expense(SGA) was $404 Mil.
Total Current Liabilities was $12,368 Mil.
Long-Term Debt was $9,509 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)
=(11497 / 46558) / (11351 / 42011)
=0.2469393 / 0.27019114
=0.9139

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)
=(2725 / 42011) / (2682 / 46558)
=0.21620528 / 0.24043129
=0.8992

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 - (26225 + 15096) / 67100) / (1 - (24156 + 14780) / 61547)
=0.38418778 / 0.36737778
=1.0458

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
=46558 / 42011
=1.1082

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))
=(3500 / (3500 + 14780)) / (3666 / (3666 + 15096))
=0.19146608 / 0.19539495
=0.9799

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)
=(416 / 46558) / (404 / 42011)
=0.00893509 / 0.00961653
=0.9291

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)
=((10393 + 13525) / 67100) / ((9509 + 12368) / 61547)
=0.35645306 / 0.35545193
=1.0028

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
=(6733 - -142 - 9788) / 67100
=-0.0434

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.

Schlumberger NV has a M-score of -2.69 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.

Schlumberger NV Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.90491.01920.93281.02511.00361.16761.08780.88861.05760.9135
GMI 0.75140.82290.81970.90171.11021.25311.04191.08931.02110.8985
AQI 1.10470.90971.20040.89280.93181.0321.37490.94090.93591.0458
SGI 1.1461.24641.34391.23281.16310.83321.24991.29151.12981.1087
DEPI 1.01121.06021.11241.11531.03380.92991.09660.92441.05120.9799
SGAI 0.88320.87590.9240.96990.83851.09950.46511.06310.83950.9264
LVGI 0.83990.92390.97550.8330.91070.93940.91181.0931.02761.0028
TATA -0.0349-0.0557-0.0492-0.034-0.0329-0.0569-0.0237-0.0179-0.0143-0.0431
M-score -2.62-2.58-2.45-2.43-2.39-2.60-1.98-2.43-2.37-2.69

Schlumberger NV Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.78040.87460.95640.99881.06031.07171.00640.94260.94980.9139
GMI 1.27581.10361.03681.03570.92971.00321.03270.9440.92570.8992
AQI 0.90660.94090.92140.97020.96290.93590.96550.99951.02761.0458
SGI 1.41441.31221.22321.1561.13751.11491.09891.10761.10871.1082
DEPI 0.87350.92440.96441.01031.04261.05121.03741.01150.98640.9799
SGAI 0.79011.04631.06130.85630.86190.84870.84880.92120.93570.9291
LVGI 1.20831.0931.06281.01850.97621.02760.99710.99730.98861.0028
TATA -0.0281-0.0179-0.00950.0017-0.0027-0.0149-0.0217-0.0366-0.0383-0.0434
M-score -2.38-2.42-2.41-2.31-2.33-2.38-2.45-2.62-2.62-2.69
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