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Schlumberger NV (NYSE:SLB)
Beneish M-Score
-2.64 (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 -2.68 suggests that the company is not a manipulator.

SLB' s 10-Year Beneish M-Score Range
Min: -3.87   Max: -1.69
Current: -2.64

-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 -2.50.


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 * 1.0061+0.528 * 0.9396+0.404 * 1.0124+0.892 * 1.0798+0.115 * 1.04
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0393+4.679 * -0.05-0.327 * 1.0341
=-2.68

* 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 + 11965 + 11651 = $47,049 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 $3,760 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 + -59 + -43 = $-242 Mil.
Cash Flow from Operations was 2584 + 1635 + 3850 + 2143 = $10,212 Mil.
Accounts Receivable was $11,277 Mil.
Revenue was 11212 + 10701 + 11118 + 10542 = $43,573 Mil.
Gross Profit was 2500 + 2259 + 2357 + 2305 = $9,421 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 $3,697 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 / 47049) / (11277 / 43573)
=0.26038811 / 0.25880706
=1.0061

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 / 43573) / (2849 / 47049)
=0.21621187 / 0.23010053
=0.9396

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
=47049 / 43573
=1.0798

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))
=(3697 / (3697 + 14742)) / (3760 / (3760 + 15743))
=0.20049894 / 0.19279085
=1.04

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 / 47049) / (401 / 43573)
=0.0095645 / 0.00920295
=1.0393

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 - -242 - 10212) / 68086
=-0.05

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 -2.68 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 0.75140.82290.81970.90171.11021.28681.01461.08931.02110.8985
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 0.88320.87590.9240.96990.83851.28040.39941.06310.83950.9264
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 -2.62-2.58-2.45-2.43-2.39-2.61-1.98-2.43-2.37-2.69

Schlumberger NV Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.95640.99881.06031.07171.00640.96480.97170.93460.94071.0061
GMI 1.03681.03570.92971.00321.03271.02290.99940.96830.94660.9396
AQI 0.92140.97020.96290.93590.96550.99951.02761.04581.05561.0124
SGI 1.22321.1561.13751.11491.09891.08211.08371.08371.07941.0798
DEPI 0.96441.01031.04261.05121.03740.99020.98640.97990.98191.04
SGAI 1.06130.85630.86190.84870.84880.9430.95730.95010.9841.0393
LVGI 1.06281.01850.97621.02760.99710.99730.98861.00281.01361.0341
TATA -0.00950.0017-0.0027-0.0149-0.0221-0.0583-0.0537-0.0584-0.0605-0.05
M-score -2.41-2.31-2.33-2.38-2.45-2.69-2.66-2.73-2.76-2.68
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