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Schlumberger NV (NYSE:SLB)
Beneish M-Score
-2.70 (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 -2.70 suggests that the company is not a manipulator.

SLB' s 10-Year Beneish M-Score Range
Min: -3.87   Max: -1.69
Current: -2.7

-3.87
-1.69

During the past 13 years, the highest Beneish M-Score of Schlumberger NV was -1.69. The lowest was -3.87. And the median was -2.51.


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 * 0.971+0.528 * 1.0235+0.404 * 1.0226+0.892 * 1.0551+0.115 * 1.0564
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0594+4.679 * -0.0552-0.327 * 1.0098
=-2.70

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $12,352 Mil.
Revenue was 12725 + 12118 + 11315 + 11966 = $48,124 Mil.
Gross Profit was 3036 + 2849 + 2570 + 2682 = $11,137 Mil.
Total Current Assets was $25,473 Mil.
Total Assets was $68,320 Mil.
Property, Plant and Equipment(Net PPE) was $15,809 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,804 Mil.
Selling, General & Admin. Expense(SGA) was $465 Mil.
Total Current Liabilities was $12,388 Mil.
Long-Term Debt was $11,626 Mil.
Net Income was 1949 + 1595 + 1592 + 1664 = $6,800 Mil.
Non Operating Income was -79 + -64 + -76 + 291 = $72 Mil.
Cash Flow from Operations was 3063 + 2584 + 1635 + 3217 = $10,499 Mil.
Accounts Receivable was $12,057 Mil.
Revenue was 11651 + 12240 + 10603 + 11118 = $45,612 Mil.
Gross Profit was 2725 + 3528 + 2194 + 2357 = $10,804 Mil.
Total Current Assets was $25,093 Mil.
Total Assets was $65,123 Mil.
Property, Plant and Equipment(Net PPE) was $14,828 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,821 Mil.
Selling, General & Admin. Expense(SGA) was $416 Mil.
Total Current Liabilities was $12,753 Mil.
Long-Term Debt was $9,916 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)
=(12352 / 48124) / (12057 / 45612)
=0.25667027 / 0.26433833
=0.971

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)
=(2849 / 45612) / (3036 / 48124)
=0.23686749 / 0.23142299
=1.0235

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 - (25473 + 15809) / 68320) / (1 - (25093 + 14828) / 65123)
=0.39575527 / 0.38699077
=1.0226

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
=48124 / 45612
=1.0551

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))
=(3821 / (3821 + 14828)) / (3804 / (3804 + 15809))
=0.20489034 / 0.19395299
=1.0564

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)
=(465 / 48124) / (416 / 45612)
=0.00966254 / 0.00912041
=1.0594

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)
=((11626 + 12388) / 68320) / ((9916 + 12753) / 65123)
=0.35149297 / 0.34809514
=1.0098

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
=(6800 - 72 - 10499) / 68320
=-0.0552

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 -2.70 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.99881.06031.07171.00870.94460.95180.91590.91811.02760.971
GMI 1.03570.92971.00321.03770.94790.92920.90260.87711.01411.0235
AQI 0.97020.96290.93590.96550.99951.02761.04581.05561.01241.0226
SGI 1.1561.13751.11491.09631.10521.10631.10591.10611.05721.0551
DEPI 1.01031.04261.05121.03740.99020.95450.97990.98191.041.0564
SGAI 0.85630.86190.84870.85070.92330.93770.93110.96031.06141.0594
LVGI 1.01850.97621.02760.99710.99730.98861.00281.01361.03411.0098
TATA 0.0017-0.0027-0.0149-0.0221-0.042-0.0477-0.0483-0.0504-0.0551-0.0552
M-score -2.31-2.33-2.38-2.45-2.65-2.67-2.71-2.74-2.67-2.70
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