Switch to:
Schlumberger NV (NYSE:SLB)
Beneish M-Score
-2.87 (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 -2.87 suggests that the company is not a manipulator.

SLB' s 10-Year Beneish M-Score Range
Min: -3.87   Max: -1.69
Current: -2.87

-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 -2.52.


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 * 0.8814+0.528 * 1.0507+0.404 * 1.0445+0.892 * 1.0144+0.115 * 0.9306
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1289+4.679 * -0.0638-0.327 * 1.0399
=-2.87

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $10,443 Mil.
Revenue was 10297 + 12712 + 12725 + 12118 = $47,852 Mil.
Gross Profit was 2201 + 3022 + 3036 + 2849 = $11,108 Mil.
Total Current Assets was $23,394 Mil.
Total Assets was $65,411 Mil.
Property, Plant and Equipment(Net PPE) was $15,135 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,135 Mil.
Selling, General & Admin. Expense(SGA) was $489 Mil.
Total Current Liabilities was $14,572 Mil.
Long-Term Debt was $8,898 Mil.
Net Income was 975 + 302 + 1949 + 1595 = $4,821 Mil.
Non Operating Income was -439 + -1553 + -79 + -64 = $-2,135 Mil.
Cash Flow from Operations was 1770 + 3913 + 3063 + 2382 = $11,128 Mil.
Accounts Receivable was $11,680 Mil.
Revenue was 11315 + 11966 + 11651 + 12240 = $47,172 Mil.
Gross Profit was 2570 + 2682 + 2725 + 3528 = $11,505 Mil.
Total Current Assets was $25,353 Mil.
Total Assets was $66,717 Mil.
Property, Plant and Equipment(Net PPE) was $15,114 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,771 Mil.
Selling, General & Admin. Expense(SGA) was $427 Mil.
Total Current Liabilities was $11,899 Mil.
Long-Term Debt was $11,120 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)
=(10443 / 47852) / (11680 / 47172)
=0.21823539 / 0.24760451
=0.8814

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)
=(3022 / 47172) / (2201 / 47852)
=0.24389468 / 0.23213241
=1.0507

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 - (23394 + 15135) / 65411) / (1 - (25353 + 15114) / 66717)
=0.41097063 / 0.39345294
=1.0445

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
=47852 / 47172
=1.0144

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))
=(3771 / (3771 + 15114)) / (4135 / (4135 + 15135))
=0.19968229 / 0.21458225
=0.9306

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)
=(489 / 47852) / (427 / 47172)
=0.01021901 / 0.00905198
=1.1289

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)
=((8898 + 14572) / 65411) / ((11120 + 11899) / 66717)
=0.35880815 / 0.34502451
=1.0399

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
=(4821 - -2135 - 11128) / 65411
=-0.0638

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 -2.87 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 1.01920.93281.02511.00361.16761.08780.88861.04710.92260.9237
GMI 0.82290.81970.90171.11021.25311.04191.08931.00370.9141.0203
AQI 0.90971.20040.89280.93181.0321.37490.94090.93591.04581.0432
SGI 1.24641.34391.23281.16310.83321.24991.29151.14111.09781.0519
DEPI 1.06021.11241.11531.03380.92991.09660.92441.05120.97990.9302
SGAI 0.87590.9240.96990.83851.09950.46511.06310.83120.93571.0855
LVGI 0.92390.97550.8330.91070.93940.91181.0931.02761.00281.0374
TATA -0.0557-0.0492-0.034-0.0329-0.0569-0.0237-0.0179-0.0187-0.0431-0.0595
M-score -2.58-2.45-2.43-2.39-2.60-1.98-2.43-2.40-2.68-2.79

Schlumberger NV Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.04681.01690.95690.96880.93570.92691.03450.9750.92570.8814
GMI 1.00361.00550.92910.91740.89890.89241.02511.03131.02381.0507
AQI 0.93590.96550.99951.02761.04581.05561.01241.02261.04321.0445
SGI 1.14141.08741.09091.08691.08241.09561.05021.05071.04971.0144
DEPI 1.05121.03831.01150.98640.97990.9670.99740.99020.93020.9306
SGAI 0.82070.86580.94490.96410.96080.96951.06861.06391.09011.1289
LVGI 1.02760.99710.99730.98861.00281.01361.03411.00981.03741.0399
TATA -0.0187-0.026-0.0394-0.0398-0.0434-0.0497-0.0563-0.0603-0.0605-0.0638
M-score -2.39-2.49-2.65-2.64-2.70-2.73-2.67-2.73-2.79-2.87
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