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Schlumberger NV (NYSE:SLB)
Beneish M-Score
-2.67 (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 -2.67 suggests that the company is not a manipulator.

SLB' s 10-Year Beneish M-Score Range
Min: -14.28   Max: -1.83
Current: -2.67

-14.28
-1.83

During the past 13 years, the highest Beneish M-Score of Schlumberger NV was -1.83. The lowest was -14.28. And the median was -2.61.


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 * 1.0345+0.528 * 1.0251+0.404 * 1.0124+0.892 * 1.0502+0.115 * 0.9974
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0686+4.679 * -0.0554-0.327 * 1.0341
=-2.67

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
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.
Net Income was 1595 + 1592 + 1664 + 1715 = $6,566 Mil.
Non Operating Income was -64 + -76 + -60 + -43 = $-243 Mil.
Cash Flow from Operations was 2584 + 1635 + 3850 + 2510 = $10,579 Mil.
Accounts Receivable was $11,277 Mil.
Revenue was 12240 + 10701 + 11210 + 10652 = $44,803 Mil.
Gross Profit was 3528 + 2259 + 2419 + 2362 = $10,568 Mil.
Total Current Assets was $23,799 Mil.
Total Assets was $63,251 Mil.
Property, Plant and Equipment(Net PPE) was $14,742 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,600 Mil.
Selling, General & Admin. Expense(SGA) was $401 Mil.
Total Current Liabilities was $12,454 Mil.
Long-Term Debt was $9,098 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)
=(12251 / 47050) / (11277 / 44803)
=0.26038257 / 0.25170189
=1.0345

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)
=(2570 / 44803) / (2849 / 47050)
=0.23587706 / 0.23009564
=1.0251

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 - (25414 + 15743) / 68086) / (1 - (23799 + 14742) / 63251)
=0.3955145 / 0.39066576
=1.0124

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
=47050 / 44803
=1.0502

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))
=(3600 / (3600 + 14742)) / (3857 / (3857 + 15743))
=0.19627085 / 0.19678571
=0.9974

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)
=(450 / 47050) / (401 / 44803)
=0.00956429 / 0.00895029
=1.0686

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)
=((11740 + 12251) / 68086) / ((9098 + 12454) / 63251)
=0.35236319 / 0.3407377
=1.0341

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
=(6566 - -243 - 10579) / 68086
=-0.0554

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 -2.67 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 1.271.01920.93281.04410.98571.16721.07980.83971.11630.9226
GMI 0.88390.82450.82340.93421.07361.28430.94541.25060.93830.914
AQI 1.10470.90971.20040.89280.93181.0321.37490.94090.93591.0458
SGI 0.81661.24641.34391.21041.18420.83351.25921.36671.07031.0978
DEPI 1.13371.06021.11241.11531.0340.92981.09660.92281.0530.9799
SGAI 0.4650.87480.88820.98790.95791.10040.82850.48070.88620.9357
LVGI 0.83990.93230.96680.8330.91070.93940.91181.0931.02761.0028
TATA -0.0349-0.0557-0.0492-0.0485-0.042-0.0632-0.0196-0.0212-0.0187-0.0431
M-score -2.42-2.58-2.43-2.49-2.47-2.61-2.08-2.24-2.44-2.68

Schlumberger NV Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.90360.9741.06741.09841.06460.98550.98130.93570.92691.0345
GMI 1.17141.11390.96290.94720.95380.89450.89480.89890.89241.0251
AQI 0.92140.97020.96290.93590.96550.99951.02761.04581.05561.0124
SGI 1.29471.18541.131.08781.03871.05931.07311.08241.09561.0502
DEPI 0.96231.01061.04341.0531.04011.01230.98690.97990.98150.9974
SGAI 0.54670.54910.66760.86720.91280.98070.9940.96080.96951.0686
LVGI 1.06281.01850.97621.02760.99710.99730.98861.00281.01361.0341
TATA -0.0123-0.0022-0.0076-0.0187-0.026-0.0394-0.0398-0.0434-0.0458-0.0554
M-score -2.25-2.23-2.30-2.43-2.53-2.68-2.66-2.70-2.71-2.67
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