Switch to:
Schlumberger NV (NYSE:SLB)
Beneish M-Score
-3.03 (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 -3.03 suggests that the company is not a manipulator.

SLB' s 10-Year Beneish M-Score Range
Min: -3.87   Max: -1.69
Current: -3.03

-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 -2.54.


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 * 0.8205+0.528 * 1.0124+0.404 * 1.056+0.892 * 0.952+0.115 * 0.8948
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1345+4.679 * -0.0709-0.327 * 1.003
=-3.03

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $9,569 Mil.
Revenue was 9057 + 10297 + 12712 + 12725 = $44,791 Mil.
Gross Profit was 1921 + 2201 + 3022 + 3036 = $10,180 Mil.
Total Current Assets was $22,861 Mil.
Total Assets was $64,753 Mil.
Property, Plant and Equipment(Net PPE) was $14,848 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,186 Mil.
Selling, General & Admin. Expense(SGA) was $486 Mil.
Total Current Liabilities was $13,774 Mil.
Long-Term Debt was $9,110 Mil.
Net Income was 1124 + 975 + 302 + 1949 = $4,350 Mil.
Non Operating Income was -47 + -439 + -1553 + -79 = $-2,118 Mil.
Cash Flow from Operations was 2314 + 1770 + 3913 + 3063 = $11,060 Mil.
Accounts Receivable was $12,251 Mil.
Revenue was 12118 + 11315 + 11966 + 11651 = $47,050 Mil.
Gross Profit was 2849 + 2570 + 2682 + 2725 = $10,826 Mil.
Total Current Assets was $25,414 Mil.
Total Assets was $68,086 Mil.
Property, Plant and Equipment(Net PPE) was $15,743 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,857 Mil.
Selling, General & Admin. Expense(SGA) was $450 Mil.
Total Current Liabilities was $12,251 Mil.
Long-Term Debt was $11,740 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)
=(9569 / 44791) / (12251 / 47050)
=0.21363667 / 0.26038257
=0.8205

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)
=(2201 / 47050) / (1921 / 44791)
=0.23009564 / 0.2272778
=1.0124

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 - (22861 + 14848) / 64753) / (1 - (25414 + 15743) / 68086)
=0.4176486 / 0.3955145
=1.056

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
=44791 / 47050
=0.952

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))
=(3857 / (3857 + 15743)) / (4186 / (4186 + 14848))
=0.19678571 / 0.21992224
=0.8948

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)
=(486 / 44791) / (450 / 47050)
=0.01085039 / 0.00956429
=1.1345

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)
=((9110 + 13774) / 64753) / ((11740 + 12251) / 68086)
=0.35340448 / 0.35236319
=1.003

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
=(4350 - -2118 - 11060) / 64753
=-0.0709

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 -3.03 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 1.01920.93281.02511.00361.16761.07980.83971.11630.92260.9237
GMI 0.82290.81970.90171.11021.28680.94541.25060.93830.9141.0203
AQI 0.90971.20040.89280.93181.0321.37490.94090.93591.04581.0432
SGI 1.24641.34391.23281.16310.83321.25921.36671.07031.09781.0519
DEPI 1.06021.11241.11531.03380.92991.09660.92281.0530.97990.9302
SGAI 0.87590.9240.96990.83851.28040.82850.48070.88620.93571.0855
LVGI 0.92390.97550.8330.91070.93940.91181.0931.02761.00281.0374
TATA -0.0557-0.0492-0.034-0.0329-0.0632-0.0196-0.0212-0.0187-0.0431-0.0595
M-score -2.58-2.45-2.43-2.39-2.64-2.08-2.24-2.44-2.68-2.79

Schlumberger NV Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.06460.98550.98130.93570.92691.03450.9750.92570.88140.8205
GMI 0.95380.89450.89480.89890.89241.02511.03131.02381.05071.0124
AQI 0.96550.99951.02761.04581.05561.01241.02261.04321.04451.056
SGI 1.03871.05931.07311.08241.09561.05021.05071.04971.01440.952
DEPI 1.04011.01230.98690.97990.98150.99740.99020.93020.90510.8948
SGAI 0.91280.98070.9940.96080.96951.06861.06391.09011.12891.1345
LVGI 0.99710.99730.98861.00281.01361.03411.00981.03741.03991.003
TATA -0.026-0.0394-0.0398-0.0434-0.0458-0.0554-0.0593-0.0596-0.0669-0.0709
M-score -2.53-2.68-2.66-2.70-2.71-2.67-2.72-2.79-2.89-3.03
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK