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China Petroleum & Chemical Corp (NYSE:SNP)
Beneish M-Score
-2.73 (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 -2.76 suggests that the company is not a manipulator.

SNP' s 10-Year Beneish M-Score Range
Min: -3.29   Max: -0.23
Current: -2.73

-3.29
-0.23

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical Corp was -0.23. The lowest was -3.29. And the median was -2.80.


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 * 1.0883+0.528 * 0.9459+0.404 * 1.2062+0.892 * 1.001+0.115 * 0.6555
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1139+4.679 * -0.0712-0.327 * 1.0725
=-2.76

* 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 $15,521 Mil.
Revenue was 114773.376561 + 103849.829904 + 121894.468225 + 118411.764706 = $458,929 Mil.
Gross Profit was 20288.0942445 + 20156.1639397 + 21665.1300626 + 21645.5882353 = $83,755 Mil.
Total Current Assets was $67,526 Mil.
Total Assets was $229,439 Mil.
Property, Plant and Equipment(Net PPE) was $130,655 Mil.
Depreciation, Depletion and Amortization(DDA) was $20,277 Mil.
Selling, General & Admin. Expense(SGA) was $20,982 Mil.
Total Current Liabilities was $97,094 Mil.
Long-Term Debt was $21,735 Mil.
Net Income was 2956.69758932 + 2287.54252389 + 2277.2472835 + 3597.87581699 = $11,119 Mil.
Non Operating Income was 148.781818765 + -351.854851774 + 492.426736911 + 213.725490196 = $503 Mil.
Cash Flow from Operations was 0 + 2044.54884173 + 11900.0658545 + 13008.496732 = $26,953 Mil.
Accounts Receivable was $14,246 Mil.
Revenue was 117325.236387 + 111918.101368 + 122136.852238 + 107071.835443 = $458,452 Mil.
Gross Profit was 18014.183241 + 20312.9525342 + 21440.0770095 + 19376.8987342 = $79,144 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 $12,038 Mil.
Selling, General & Admin. Expense(SGA) was $18,817 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)
=(15520.6561166 / 458929.439396) / (14246.1688947 / 458452.025436)
=0.03381926 / 0.0310745
=1.0883

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)
=(20156.1639397 / 458452.025436) / (20288.0942445 / 458929.439396)
=0.17263336 / 0.18250077
=0.9459

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 - (67526.0809553 + 130654.993099) / 229439.058839) / (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
=458929.439396 / 458452.025436
=1.001

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))
=(12038.2816056 / (12038.2816056 + 124665.960222)) / (20276.6246184 / (20276.6246184 + 130654.993099))
=0.08806078 / 0.13434312
=0.6555

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)
=(20982.4135719 / 458929.439396) / (18816.7809817 / 458452.025436)
=0.04572035 / 0.04104417
=1.1139

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)
=((21734.9853947 + 97093.538343) / 229439.058839) / ((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
=(11119.3632137 - 503.079194099 - 26953.1114282) / 229439.058839
=-0.0712

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 -2.76 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 0.76111.68310.53811.33440.45662.27561.13931.04041.24660.8136
GMI 1.0961.3711.07081.01581.3780.51021.18431.19811.06570.9858
AQI 1.28611.08771.65711.15320.97270.99671.03111.03490.98621.2108
SGI 1.38071.36151.32861.2081.33290.9031.46051.3721.13241.0609
DEPI 0.99491.14271.03280.8941.06350.9740.95360.99791.01250.9539
SGAI 0.70230.75870.84170.83450.90991.22950.91210.88480.97311.073
LVGI 1.02351.01840.86971.0451.01710.982311.03181.09530.9661
TATA -0.0606-0.0805-0.07540.07-0.0581-0.1176-0.1051-0.0735-0.0639-0.0673
M-score -2.43-1.62-2.59-1.59-2.75-2.24-2.31-2.33-2.43-2.84

China Petroleum & Chemical Corp Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.61490.59980.86061.24271.04470.97040.87420.81240.77571.0883
GMI 0.58551.06111.07951.08071.02441.0120.99760.98690.9920.9459
AQI 1.03261.16731.17550.98621.04630.98361.09091.21081.15521.2062
SGI 2.49032.181.44681.1361.10311.11141.12091.06261.03131.001
DEPI 6.34840.98267.07281.84011.83271.61931.08840.67040.65350.6555
SGAI 1.98711.10641.03380.97230.99090.97631.01771.07321.08481.1139
LVGI 1.06051.02130.94811.09530.97140.91361.00050.96611.05061.0725
TATA -0.0733-0.0997-0.1436-0.063-0.0864-0.0495-0.0663-0.0731-0.0772-0.0712
M-score -1.63-2.19-2.06-2.32-2.61-2.54-2.76-2.90-3.03-2.76
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