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China Petroleum & Chemical Corp (NYSE:SNP)
Beneish M-Score
-2.70 (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 -2.73 suggests that the company is not a manipulator.

SNP' s 10-Year Beneish M-Score Range
Min: -3.29   Max: 0.69
Current: -2.7

-3.29
0.69

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical Corp was 0.69. The lowest was -3.29. And the median was -2.60.


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 * 1.0915+0.528 * 0.9463+0.404 * 1.2062+0.892 * 0.9985+0.115 * 0.695
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.114+4.679 * -0.0653-0.327 * 1.0725
=-2.73

* 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 $18,903 Mil.
Revenue was 115377.057115 + 102982.329317 + 122357.7921 + 118741.602491 = $459,459 Mil.
Gross Profit was 20394.8047757 + 19987.7911647 + 21747.4797554 + 21705.8823529 = $83,836 Mil.
Total Current Assets was $67,881 Mil.
Total Assets was $230,646 Mil.
Property, Plant and Equipment(Net PPE) was $131,342 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,701 Mil.
Selling, General & Admin. Expense(SGA) was $21,006 Mil.
Total Current Liabilities was $97,604 Mil.
Long-Term Debt was $21,849 Mil.
Net Income was 2972.24911262 + 2268.43373494 + 2285.9031565 + 3607.8977552 = $11,134 Mil.
Non Operating Income was 149.564375605 + -348.915662651 + 494.298463064 + 214.320825823 = $509 Mil.
Cash Flow from Operations was 0 + 2027.46987952 + 11945.2982978 + 11715.7135835 = $25,688 Mil.
Accounts Receivable was $17,345 Mil.
Revenue was 117325.236387 + 112442.774006 + 122352.780456 + 108046.303688 = $460,167 Mil.
Gross Profit was 18014.183241 + 20408.1797608 + 21477.9813565 + 19553.2492416 = $79,454 Mil.
Total Current Assets was $59,526 Mil.
Total Assets was $207,644 Mil.
Property, Plant and Equipment(Net PPE) was $124,666 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,760 Mil.
Selling, General & Admin. Expense(SGA) was $18,886 Mil.
Total Current Liabilities was $83,201 Mil.
Long-Term Debt was $17,071 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)
=(18902.7105518 / 459458.781024) / (17344.9625041 / 460167.094538)
=0.04114125 / 0.03769275
=1.0915

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)
=(19987.7911647 / 460167.094538) / (20394.8047757 / 459458.781024)
=0.17266248 / 0.18246677
=0.9463

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 - (67881.2520168 + 131342.207164) / 230645.853501) / (1 - (59525.595044 + 124665.960222) / 207643.951744)
=0.13623655 / 0.11294524
=1.2062

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
=459458.781024 / 460167.094538
=0.9985

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))
=(8760.44275448 / (8760.44275448 + 124665.960222)) / (13701.4795358 / (13701.4795358 + 131342.207164))
=0.06565749 / 0.0944645
=0.695

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)
=(21006.4206837 / 459458.781024) / (18886.4011103 / 460167.094538)
=0.04571992 / 0.04104249
=1.114

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)
=((21849.3062278 + 97604.2271701) / 230645.853501) / ((17070.753179 + 83200.8477339) / 207643.951744)
=0.51790887 / 0.48290162
=1.0725

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
=(11134.4837593 - 509.268001842 - 25688.4817608) / 230645.853501
=-0.0653

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 -2.73 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.83521.01940.84550.57011.2071.44621.1211.05250.9272
GMI 1.0961.3711.07081.3780.51021.18431.19811.06570.9858
AQI 1.28611.08771.65710.97270.99671.03111.03490.98621.2108
SGI 1.38071.36341.33261.31340.90081.47221.36751.12891.0631
DEPI 0.99491.14271.032800.9740.95360.99791.01250.9539
SGAI 0.70230.75870.84170.90991.22950.91210.88480.97311.073
LVGI 1.02351.01840.86971.01710.982311.03181.09530.9661
TATA -0.0606-0.0805-0.0754-0.0581-0.1176-0.1051-0.0735-0.0639-0.0673
M-score -2.37-2.23-2.30-2.78-3.22-2.02-2.26-2.61-2.73

China Petroleum & Chemical Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.48341.04731.0220.99550.90920.92750.85141.0915
GMI 1.06111.08061.02431.0120.99770.98690.99230.9463
AQI 1.16730.98621.04630.98361.09091.21081.15521.2062
SGI 2.1751.13451.10371.11351.11961.06271.02750.9985
DEPI 0.95551.01261.23921.37641.19330.95270.9090.695
SGAI 1.10650.97230.99070.97611.01771.07331.08491.114
LVGI 1.02131.09530.97140.91361.00050.96611.05061.0725
TATA -0.0742-0.0631-0.0862-0.0498-0.0601-0.0672-0.0723-0.0653
M-score -2.18-2.60-2.70-2.54-2.68-2.73-2.91-2.73
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