Switch to:
Schlumberger Ltd (NYSE:SLB)
Beneish M-Score
-2.92 (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 Ltd has a M-score of -2.92 suggests that the company is not a manipulator.

SLB' s Beneish M-Score Range Over the Past 10 Years
Min: -3.86   Max: -1.67
Current: -2.92

-3.86
-1.67

During the past 13 years, the highest Beneish M-Score of Schlumberger Ltd was -1.67. The lowest was -3.86. And the median was -2.55.


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 Ltd 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 * 1.201+0.528 * 1.1798+0.404 * 0.9918+0.892 * 0.6683+0.115 * 0.9374
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4811+4.679 * -0.0555-0.327 * 1.2138
=-2.92

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $8,382 Mil.
Revenue was 6565 + 7825 + 8532 + 9057 = $31,979 Mil.
Gross Profit was 1105 + 1532 + 1734 + 1921 = $6,292 Mil.
Total Current Assets was $27,700 Mil.
Total Assets was $69,141 Mil.
Property, Plant and Equipment(Net PPE) was $13,259 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,003 Mil.
Selling, General & Admin. Expense(SGA) was $484 Mil.
Total Current Liabilities was $12,880 Mil.
Long-Term Debt was $17,233 Mil.
Net Income was 501 + -1016 + 989 + 1124 = $1,598 Mil.
Non Operating Income was -45 + -2656 + -60 + -47 = $-2,808 Mil.
Cash Flow from Operations was 1210 + 2178 + 2543 + 2314 = $8,245 Mil.
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 $4,204 Mil.
Selling, General & Admin. Expense(SGA) was $489 Mil.
Total Current Liabilities was $14,572 Mil.
Long-Term Debt was $8,898 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)
=(8382 / 31979) / (10443 / 47852)
=0.26210951 / 0.21823539
=1.201

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)
=(1532 / 47852) / (1105 / 31979)
=0.23213241 / 0.19675412
=1.1798

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 - (27700 + 13259) / 69141) / (1 - (23394 + 15135) / 65411)
=0.40760186 / 0.41097063
=0.9918

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
=31979 / 47852
=0.6683

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))
=(4204 / (4204 + 15135)) / (4003 / (4003 + 13259))
=0.21738456 / 0.23189665
=0.9374

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)
=(484 / 31979) / (489 / 47852)
=0.01513493 / 0.01021901
=1.4811

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)
=((17233 + 12880) / 69141) / ((8898 + 14572) / 65411)
=0.43553029 / 0.35880815
=1.2138

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
=(1598 - -2808 - 8245) / 69141
=-0.0555

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 Ltd has a M-score of -2.92 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 Ltd Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.93281.04410.98571.16721.07980.83971.11630.92260.92371.0756
GMI 0.82340.93421.07361.28430.94541.25060.93830.9141.02031.1344
AQI 1.20040.89280.93181.0321.37490.94090.93591.04581.04321.0155
SGI 1.34391.21041.18420.83351.25921.36671.07031.09781.05190.7307
DEPI 1.11241.11531.0340.92981.09660.92281.0530.97990.93020.9011
SGAI 0.88820.98790.95791.10040.82850.48070.88620.93571.08551.4233
LVGI 0.97550.8330.91070.93940.91181.0931.02761.00281.03741.1358
TATA -0.0469-0.0485-0.042-0.0632-0.0196-0.0212-0.0187-0.0431-0.0556-0.0577
M-score -2.43-2.49-2.47-2.61-2.08-2.24-2.44-2.68-2.77-2.97

Schlumberger Ltd Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.93570.92691.03450.9750.92570.88140.82050.89941.07561.201
GMI 0.89890.89241.02511.03131.02381.05071.01241.05831.13521.1798
AQI 1.04581.05561.01241.02261.04321.04451.0561.08731.01550.9918
SGI 1.08241.09561.05021.05071.04971.01440.9520.84360.73070.6683
DEPI 0.97990.98150.99740.99020.93020.90510.89480.89740.90110.9374
SGAI 0.96080.96951.06861.06391.09011.12891.13451.23131.41741.4811
LVGI 1.00281.01361.03411.00981.03741.03991.0030.96551.13581.2138
TATA -0.0434-0.0458-0.0554-0.0593-0.0556-0.0626-0.0666-0.0753-0.0517-0.0555
M-score -2.70-2.71-2.67-2.72-2.77-2.87-3.01-3.04-2.94-2.92
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)
FEEDBACK