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China Petroleum & Chemical Corp (NYSE:SNP)
Beneish M-Score
-3.14 (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 -3.18 suggests that the company is not a manipulator.

SNP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.59   Max: -0.1
Current: -3.14

-3.59
-0.1

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical Corp was -0.10. The lowest was -3.59. And the median was -2.42.


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 * 1.1453+0.528 * 0.7801+0.404 * 1.0863+0.892 * 0.7816+0.115 * 0.9431
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2605+4.679 * -0.1115-0.327 * 0.9535
=-3.18

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $8,739 Mil.
Revenue was 72670.2347756 + 70635.2819766 + 63633.567595 + 74572.7310788 = $281,512 Mil.
Gross Profit was 19819.6455878 + 20888.1199539 + 19401.9407323 + 20400.8311237 = $80,511 Mil.
Total Current Assets was $50,822 Mil.
Total Assets was $211,860 Mil.
Property, Plant and Equipment(Net PPE) was $125,614 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,192 Mil.
Selling, General & Admin. Expense(SGA) was $19,665 Mil.
Total Current Liabilities was $61,167 Mil.
Long-Term Debt was $19,839 Mil.
Net Income was 1527.39048304 + 2011.77684696 + 1024.65129869 + 831.588903878 = $5,395 Mil.
Non Operating Income was 391.74237654 + 408.547319857 + 234.825534009 + 349.661193035 = $1,385 Mil.
Cash Flow from Operations was 8333.78309496 + 6338.25047047 + 5282.11358359 + 7687.73937449 = $27,642 Mil.
Accounts Receivable was $9,762 Mil.
Revenue was 78023.9022552 + 90712.6281184 + 76658.384894 + 114770.06108 = $360,165 Mil.
Gross Profit was 19513.9455996 + 24300.5866048 + 19129.7727054 + 17406.6832563 = $80,351 Mil.
Total Current Assets was $52,957 Mil.
Total Assets was $220,556 Mil.
Property, Plant and Equipment(Net PPE) was $133,653 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,140 Mil.
Selling, General & Admin. Expense(SGA) was $19,960 Mil.
Total Current Liabilities was $69,521 Mil.
Long-Term Debt was $18,925 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)
=(8739.31816137 / 281511.815426) / (9762.3908537 / 360164.976348)
=0.03104423 / 0.02710533
=1.1453

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)
=(80350.9881661 / 360164.976348) / (80510.5373977 / 281511.815426)
=0.22309495 / 0.28599346
=0.7801

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 - (50822.3141735 + 125613.774699) / 211859.914245) / (1 - (52956.5299328 + 133652.710597) / 220556.253534)
=0.167204 / 0.15391544
=1.0863

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
=281511.815426 / 360164.976348
=0.7816

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))
=(15139.5954595 / (15139.5954595 + 133652.710597)) / (15191.7579321 / (15191.7579321 + 125613.774699))
=0.10174985 / 0.10789177
=0.9431

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)
=(19665.2090757 / 281511.815426) / (19959.5397289 / 360164.976348)
=0.06985571 / 0.05541777
=1.2605

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)
=((19839.2851789 + 61167.1314203) / 211859.914245) / ((18924.7126076 + 69520.5414913) / 220556.253534)
=0.38235839 / 0.40100996
=0.9535

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
=(5395.40753258 - 1384.77642344 - 27641.8865235) / 211859.914245
=-0.1115

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 -3.18 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 local exchange's currency.

China Petroleum & Chemical Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.53811.13931.04041.24660.60181.31540.7222
GMI 1.07081.18431.16471.09630.98581.01490.6676
AQI 1.65711.0371.0290.98621.21081.1141.0813
SGI 1.32861.46051.3721.13241.06090.96290.6856
DEPI 1.03280.95360.99791.01250.95390.96110.9445
SGAI 0.84170.91210.88480.97311.07511.02091.4002
LVGI 0.86971.07880.95641.09530.96611.0030.8022
TATA -0.071-0.105-0.0735-0.0633-0.0667-0.0705-0.0947
M-score -2.57-2.34-2.32-2.41-3.03-2.51-3.61

China Petroleum & Chemical Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.08831.17831.30110.8310.85390.8260.70740.84570.87751.1453
GMI 0.9360.96050.99970.96740.91750.80870.66770.670.7190.7801
AQI 1.20621.07891.1141.12851.06831.1311.08131.09841.12561.0863
SGI 1.0010.98820.97350.93160.88440.77580.70.71390.70680.7816
DEPI 0.91530.94830.95190.96340.98350.93440.92810.93860.92210.9431
SGAI 1.11611.06881.02011.05251.07881.23751.39791.37311.40441.2605
LVGI 1.01170.99171.0030.82930.82510.77950.80220.91650.92360.9535
TATA -0.079-0.0829-0.0715-0.0788-0.0853-0.0983-0.0963-0.1176-0.1077-0.1115
M-score -2.75-2.72-2.53-2.99-3.09-3.32-3.62-3.61-3.51-3.18
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