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China Petroleum & Chemical Corp (NYSE:SNP)
Beneish M-Score
-3.48 (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.

China Petroleum & Chemical Corp has a M-score of -3.53 suggests that the company is not a manipulator.

SNP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.62   Max: -0.11
Current: -3.48

-3.62
-0.11

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical Corp was -0.11. The lowest was -3.62. And the median was -2.37.


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 China Petroleum & Chemical Corp 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 * 0.8769+0.528 * 0.719+0.404 * 1.1256+0.892 * 0.7073+0.115 * 0.9213
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4093+4.679 * -0.1119-0.327 * 0.9236
=-3.53

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $7,269 Mil.
Revenue was 70635.2819766 + 63633.567595 + 74746.2436619 + 77968.936491 = $286,984 Mil.
Gross Profit was 20888.1199539 + 19401.9407323 + 20444.5581554 + 19501.3819964 = $80,236 Mil.
Total Current Assets was $52,764 Mil.
Total Assets was $217,420 Mil.
Property, Plant and Equipment(Net PPE) was $129,038 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,323 Mil.
Selling, General & Admin. Expense(SGA) was $19,941 Mil.
Total Current Liabilities was $67,595 Mil.
Long-Term Debt was $18,218 Mil.
Net Income was 2011.77684696 + 1024.65129869 + -533.407762323 + 670.58232301 = $3,174 Mil.
Non Operating Income was 408.547319857 + 234.825534009 + 374.470856399 + -492.650292104 = $525 Mil.
Cash Flow from Operations was 6338.25047047 + 5282.11358359 + 7632.84799429 + 7718.92078648 = $26,972 Mil.
Accounts Receivable was $11,721 Mil.
Revenue was 90588.6998002 + 76658.384894 + 114770.06108 + 123729.432081 = $405,747 Mil.
Gross Profit was 24268.0332624 + 19129.7727054 + 17406.6832563 + 20756.7365026 = $81,561 Mil.
Total Current Assets was $63,746 Mil.
Total Assets was $236,955 Mil.
Property, Plant and Equipment(Net PPE) was $138,722 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,035 Mil.
Selling, General & Admin. Expense(SGA) was $20,005 Mil.
Total Current Liabilities was $81,692 Mil.
Long-Term Debt was $19,570 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)
=(7269.16772901 / 286984.029724) / (11720.6536453 / 405746.577855)
=0.02532952 / 0.02888664
=0.8769

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)
=(81561.2257267 / 405746.577855) / (80236.0008379 / 286984.029724)
=0.20101519 / 0.2795835
=0.719

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 - (52764.2202392 + 129037.667699) / 217420.02064) / (1 - (63745.7293883 + 138721.878425) / 236955.295559)
=0.16382177 / 0.14554512
=1.1256

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
=286984.029724 / 405746.577855
=0.7073

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))
=(15035.3460966 / (15035.3460966 + 138721.878425)) / (15322.5025595 / (15322.5025595 + 129037.667699))
=0.09778627 / 0.10614079
=0.9213

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)
=(19940.7944852 / 286984.029724) / (20005.3573131 / 405746.577855)
=0.06948399 / 0.04930505
=1.4093

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)
=((18217.9930796 + 67594.8521824) / 217420.02064) / ((19570.1991878 + 81691.6457165) / 236955.295559)
=0.39468695 / 0.42734578
=0.9236

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
=(3173.60270634 - 525.19341816 - 26972.1328348) / 217420.02064
=-0.1119

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.

China Petroleum & Chemical Corp has a M-score of -3.53 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.

China Petroleum & Chemical Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.53811.33450.45662.27561.13931.04041.24660.81360.98080.7164
GMI 1.07081.01581.3780.52491.16591.1931.09170.95431.01490.6676
AQI 1.65711.38530.80971.01991.00761.03491.04291.1451.1141.0813
SGI 1.32861.2081.33290.9031.46051.3721.13241.06090.96290.6856
DEPI 1.03280.90021.05621.00450.9250.99741.01250.95390.96110.9445
SGAI 0.84170.83450.90991.22780.8590.90571.01081.0731.02191.4016
LVGI 0.86970.92351.15090.99440.98791.10090.96271.03011.0030.8022
TATA -0.071-0.0932-0.0581-0.1066-0.105-0.0735-0.0635-0.0673-0.0705-0.0947
M-score -2.57-2.22-2.86-2.17-2.32-2.36-2.35-2.91-2.82-3.62

China Petroleum & Chemical Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.77571.08831.17830.97010.8310.85410.82640.70170.84580.8769
GMI 0.95440.9310.9561.02650.99340.90790.80010.66020.66240.719
AQI 1.15521.20621.07891.1141.12851.06831.1311.08131.09841.1256
SGI 1.03131.0010.98820.97350.93160.88410.77540.69990.71390.7073
DEPI 0.91750.91530.94830.95190.96340.98390.9350.92810.93860.9213
SGAI 1.07021.11391.06671.02111.05351.07841.23621.39921.37441.4093
LVGI 1.05061.01170.99171.0030.82930.82510.77950.80220.91650.9236
TATA -0.0711-0.0797-0.0843-0.0706-0.0779-0.0847-0.0948-0.1006-0.122-0.1119
M-score -2.99-2.76-2.73-2.81-2.97-3.09-3.31-3.65-3.63-3.53
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