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China Petroleum & Chemical Corp (NYSE:SNP)
Beneish M-Score
-3.59 (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 -3.63 suggests that the company is not a manipulator.

SNP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.61   Max: -0.22
Current: -3.59

-3.61
-0.22

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical Corp was -0.22. The lowest was -3.61. And the median was -2.40.


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 * 0.8458+0.528 * 0.67+0.404 * 1.0984+0.892 * 0.7139+0.115 * 0.9386
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.373+4.679 * -0.122-0.327 * 0.9165
=-3.63

* 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 $6,145 Mil.
Revenue was 63633.567595 + 74746.2436619 + 77968.936491 + 90588.6998002 = $306,937 Mil.
Gross Profit was 19401.9407323 + 20444.5581554 + 19501.3819964 + 24268.0332624 = $83,616 Mil.
Total Current Assets was $47,296 Mil.
Total Assets was $214,940 Mil.
Property, Plant and Equipment(Net PPE) was $132,683 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,333 Mil.
Selling, General & Admin. Expense(SGA) was $19,862 Mil.
Total Current Liabilities was $62,842 Mil.
Long-Term Debt was $21,171 Mil.
Net Income was 1024.65129869 + -533.407762323 + 670.58232301 + 3742.34512989 = $4,904 Mil.
Non Operating Income was 234.825534009 + 374.470856399 + -492.650292104 + 594.662541095 = $711 Mil.
Cash Flow from Operations was 5282.11358359 + 7632.84799429 + 7718.92078648 + 9791.78753304 = $30,426 Mil.
Accounts Receivable was $10,177 Mil.
Revenue was 76658.384894 + 114770.06108 + 123729.432081 + 114773.376561 = $429,931 Mil.
Gross Profit was 19129.7727054 + 17406.6832563 + 20756.7365026 + 21179.1801753 = $78,472 Mil.
Total Current Assets was $57,286 Mil.
Total Assets was $230,188 Mil.
Property, Plant and Equipment(Net PPE) was $138,814 Mil.
Depreciation, Depletion and Amortization(DDA) was $14,951 Mil.
Selling, General & Admin. Expense(SGA) was $20,263 Mil.
Total Current Liabilities was $77,364 Mil.
Long-Term Debt was $20,810 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)
=(6144.98592892 / 306937.447548) / (10177.1230725 / 429931.254616)
=0.02002032 / 0.02367151
=0.8458

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)
=(78472.3726395 / 429931.254616) / (83615.9141465 / 306937.447548)
=0.18252307 / 0.27242005
=0.67

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 - (47295.5849109 + 132682.885571) / 214939.640457) / (1 - (57285.9295355 + 138814.477607) / 230188.022954)
=0.16265576 / 0.14808597
=1.0984

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
=306937.447548 / 429931.254616
=0.7139

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))
=(14951.0710989 / (14951.0710989 + 138814.477607)) / (15332.6909055 / (15332.6909055 + 132682.885571))
=0.09723291 / 0.10358836
=0.9386

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)
=(19861.9993851 / 306937.447548) / (20262.6379771 / 429931.254616)
=0.06471025 / 0.04712995
=1.373

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)
=((21170.8982423 + 62841.896443) / 214939.640457) / ((20809.6367775 + 77364.1522136) / 230188.022954)
=0.39086692 / 0.42649391
=0.9165

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
=(4904.17098927 - 711.308639398 - 30425.6698974) / 214939.640457
=-0.122

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 -3.63 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 0.53321.34750.4542.28671.13931.04041.24660.60181.31540.7222
GMI 1.09591.01941.32960.54381.16591.1931.09170.95431.01490.6676
AQI 1.65711.15320.97270.99671.03111.03490.98621.21081.1141.0813
SGI 1.34081.19621.34040.89871.46051.3721.13241.06090.96290.6856
DEPI 1.00790.91711.06671.02630.89650.99741.01250.95390.96110.9445
SGAI 0.69890.93010.91331.1150.8590.90571.01081.0731.02191.4016
LVGI 0.86971.0451.01710.982311.03181.09530.96611.0030.8022
TATA -0.0719-0.0922-0.0578-0.1042-0.105-0.0735-0.0639-0.0673-0.0705-0.0947
M-score -2.53-2.36-2.77-2.13-2.32-2.33-2.42-3.05-2.51-3.61

China Petroleum & Chemical Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.60080.77571.08831.17831.30110.8310.85410.82640.70740.8458
GMI 1.0010.99740.9360.96050.99970.96740.91760.80870.66770.67
AQI 1.21081.15521.20621.07891.1141.12851.06831.1311.08131.0984
SGI 1.06261.03131.0010.98820.97350.93160.88410.77540.69990.7139
DEPI 0.95210.91750.91530.94830.95190.96340.98390.9350.92810.9386
SGAI 1.07541.08691.11611.06881.02011.05251.07741.23511.39781.373
LVGI 0.96611.05061.01170.99171.0030.82930.82510.77950.80220.9165
TATA -0.0666-0.0707-0.079-0.0829-0.0715-0.0788-0.0855-0.0966-0.1006-0.122
M-score -3.02-2.97-2.75-2.72-2.53-2.99-3.09-3.32-3.64-3.63
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