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Schlumberger NV (NYSE:SLB)
Beneish M-Score
-2.79 (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 -2.79 suggests that the company is not a manipulator.

SLB' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -2
Current: -2.79

-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 * 0.9237+0.528 * 1.02+0.404 * 1.0432+0.892 * 1.0519+0.115 * 0.9732
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0878+4.679 * -0.0596-0.327 * 1.0374
=-2.79

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $11,171 Mil.
Revenue was 12712 + 12725 + 12118 + 11315 = $48,870 Mil.
Gross Profit was 3022 + 3036 + 2849 + 2570 = $11,477 Mil.
Total Current Assets was $24,694 Mil.
Total Assets was $66,904 Mil.
Property, Plant and Equipment(Net PPE) was $15,396 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,094 Mil.
Selling, General & Admin. Expense(SGA) was $476 Mil.
Total Current Liabilities was $14,176 Mil.
Long-Term Debt was $10,565 Mil.
Net Income was 302 + 1949 + 1595 + 1592 = $5,438 Mil.
Non Operating Income was -1553 + -79 + -64 + -76 = $-1,772 Mil.
Cash Flow from Operations was 3913 + 3063 + 2584 + 1635 = $11,195 Mil.
Accounts Receivable was $11,497 Mil.
Revenue was 11966 + 11651 + 12240 + 10603 = $46,460 Mil.
Gross Profit was 2682 + 2725 + 3528 + 2194 = $11,129 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 $3,879 Mil.
Selling, General & Admin. Expense(SGA) was $416 Mil.
Total Current Liabilities was $13,525 Mil.
Long-Term Debt was $10,393 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)
=(11171 / 48870) / (11497 / 46460)
=0.22858604 / 0.24746018
=0.9237

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)
=(3036 / 46460) / (3022 / 48870)
=0.23953939 / 0.23484755
=1.02

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 - (24694 + 15396) / 66904) / (1 - (26225 + 15096) / 67100)
=0.40078321 / 0.38418778
=1.0432

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
=48870 / 46460
=1.0519

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))
=(3879 / (3879 + 15096)) / (4094 / (4094 + 15396))
=0.20442688 / 0.21005644
=0.9732

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)
=(476 / 48870) / (416 / 46460)
=0.00974013 / 0.00895394
=1.0878

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)
=((10565 + 14176) / 66904) / ((10393 + 13525) / 67100)
=0.36979852 / 0.35645306
=1.0374

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
=(5438 - -1772 - 11195) / 66904
=-0.0596

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 -2.79 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.01920.93281.02511.00361.16761.08780.88861.05760.91350.9237
GMI 0.82290.81970.90171.11021.25311.04191.08931.02110.89851.0203
AQI 0.90971.20040.89280.93181.0321.37490.94090.93591.04581.0432
SGI 1.24641.34391.23281.16310.83321.24991.29151.12981.10871.0519
DEPI 1.06021.11241.11531.03380.92991.09660.92441.05120.93660.9732
SGAI 0.87590.9240.96990.83851.09950.46511.06310.83950.92641.0855
LVGI 0.92390.97550.8330.91070.93940.91181.0931.02761.00281.0374
TATA -0.0557-0.0492-0.034-0.0329-0.0569-0.0237-0.0179-0.0143-0.0522-0.0595
M-score -2.58-2.45-2.43-2.39-2.60-1.98-2.43-2.37-2.74-2.78

Schlumberger NV Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.06031.07171.00870.94460.95180.91590.91811.02760.9710.9237
GMI 0.92971.00321.03770.94790.92920.90260.87711.01411.02351.02
AQI 0.96290.93590.96550.99951.02761.04581.05561.01241.02261.0432
SGI 1.13751.11491.09631.10521.10631.10591.10611.05721.05511.0519
DEPI 1.04261.05121.03740.99020.95450.93660.9390.9951.01120.9732
SGAI 0.86190.84870.85070.92330.93770.93110.96031.06141.05941.0878
LVGI 0.97621.02760.99710.99730.98861.00281.01361.03411.00981.0374
TATA -0.0027-0.0149-0.0221-0.042-0.0477-0.0574-0.0595-0.0641-0.0641-0.0596
M-score -2.33-2.38-2.45-2.65-2.67-2.76-2.79-2.71-2.75-2.79
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