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China Petroleum & Chemical Corp (NYSE:SNP)
Beneish M-Score
-3.61 (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 -3.64 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: -3.61

-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 -1.97.


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 * 0.7074+0.528 * 0.6677+0.404 * 1.0813+0.892 * 0.6999+0.115 * 0.9281
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3978+4.679 * -0.1006-0.327 * 0.8022
=-3.64

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $5,229 Mil.
Revenue was 74746.2436619 + 77968.936491 + 90588.6998002 + 76658.384894 = $319,962 Mil.
Gross Profit was 20444.5581554 + 19501.3819964 + 24268.0332624 + 19129.7727054 = $83,344 Mil.
Total Current Assets was $51,543 Mil.
Total Assets was $223,772 Mil.
Property, Plant and Equipment(Net PPE) was $137,206 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,252 Mil.
Selling, General & Admin. Expense(SGA) was $19,896 Mil.
Total Current Liabilities was $71,737 Mil.
Long-Term Debt was $21,669 Mil.
Net Income was -533.407762323 + 670.58232301 + 3742.34512989 + 348.155034783 = $4,228 Mil.
Non Operating Income was 374.470856399 + -492.650292104 + 594.662541095 + 56.9037925176 = $533 Mil.
Cash Flow from Operations was 7632.84799429 + 7718.92078648 + 9791.78753304 + 1071.07363832 = $26,215 Mil.
Accounts Receivable was $10,560 Mil.
Revenue was 114770.06108 + 123729.432081 + 114773.376561 + 103849.829904 = $457,123 Mil.
Gross Profit was 17406.6832563 + 20756.7365026 + 21179.1801753 + 20156.1639397 = $79,499 Mil.
Total Current Assets was $58,195 Mil.
Total Assets was $234,523 Mil.
Property, Plant and Equipment(Net PPE) was $142,383 Mil.
Depreciation, Depletion and Amortization(DDA) was $14,573 Mil.
Selling, General & Admin. Expense(SGA) was $20,335 Mil.
Total Current Liabilities was $97,640 Mil.
Long-Term Debt was $24,389 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)
=(5228.63655394 / 319962.264847) / (10560.223637 / 457122.699626)
=0.01634142 / 0.02310151
=0.7074

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)
=(19501.3819964 / 457122.699626) / (20444.5581554 / 319962.264847)
=0.17391121 / 0.26047992
=0.6677

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 - (51542.8509404 + 137205.656603) / 223772.154254) / (1 - (58194.7451766 + 142383.091491) / 234522.832305)
=0.15651477 / 0.14474069
=1.0813

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
=319962.264847 / 457122.699626
=0.6999

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))
=(14573.0971904 / (14573.0971904 + 142383.091491)) / (15251.8846057 / (15251.8846057 + 137205.656603))
=0.09284818 / 0.10004021
=0.9281

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)
=(19895.6114586 / 319962.264847) / (20334.629029 / 457122.699626)
=0.06218112 / 0.04448396
=1.3978

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)
=((21669.0701028 + 71737.4517375) / 223772.154254) / ((24388.7147335 + 97640.3386873) / 234522.832305)
=0.41741799 / 0.5203291
=0.8022

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
=(4227.67472536 - 533.386897907 - 26214.6299521) / 223772.154254
=-0.1006

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 -3.64 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 0.53811.33440.45662.27561.13931.04041.24660.60181.31540.7222
GMI 1.07081.01581.3780.51021.18431.16471.09630.98581.01490.6676
AQI 1.65711.15320.97270.99671.03111.03490.98621.21081.1141.0813
SGI 1.32861.2081.33290.9031.46051.3721.13241.06090.96290.6856
DEPI 1.03280.8941.06350.9740.95360.99791.01250.95390.96110.9445
SGAI 0.84170.83450.90991.22950.91210.88480.97311.0731.02191.4016
LVGI 0.86971.0451.01710.982311.03181.09530.96611.0030.8022
TATA -0.0710.07-0.0581-0.1176-0.1051-0.0735-0.0633-0.0673-0.0705-0.0947
M-score -2.57-1.59-2.75-2.24-2.31-2.34-2.41-3.04-2.51-3.61

China Petroleum & Chemical Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.60080.77571.08831.30110.8310.85410.7074
GMI 1.0010.99740.9360.99970.96740.91760.6677
AQI 1.21081.15521.20621.1141.12851.06831.0813
SGI 1.06261.03131.0010.97350.93160.88410.6999
DEPI 0.95210.91750.91530.95190.96340.98390.9281
SGAI 1.07541.08691.11611.02011.05251.07741.3978
LVGI 0.96611.05061.07251.0030.7720.82510.8022
TATA -0.0666-0.0707-0.079-0.0715-0.0788-0.0855-0.1006
M-score -3.02-2.97-2.77-2.53-2.97-3.09-3.64
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