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China Petroleum & Chemical Corporation (NYSE:SNP)
Beneish M-Score
0.00 (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 Corporation has a M-score of -2.71 suggests that the company is not a manipulator.

SNP' s 10-Year Beneish M-Score Range
Min: -3.37   Max: 0.69
Current: 0

-3.37
0.69

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical Corporation was 0.69. The lowest was -3.37. And the median was -2.37.


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 Corporation 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 * 1.0242+0.528 * 0.9545+0.404 * 1.145+0.892 * 1.0627+0.115 * 0.9538
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0759+4.679 * -0.0662-0.327 * 1.0301
=-2.71

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $17,744 Mil.
Revenue was 122357.7921 + 118741.602491 + 117325.236387 + 112442.774006 = $470,867 Mil.
Gross Profit was 21747.4797554 + 21705.8823529 + 18601.07597 + 19826.2204979 = $81,881 Mil.
Total Current Assets was $61,644 Mil.
Total Assets was $228,543 Mil.
Property, Plant and Equipment(Net PPE) was $137,205 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,289 Mil.
Selling, General & Admin. Expense(SGA) was $20,542 Mil.
Total Current Liabilities was $94,500 Mil.
Long-Term Debt was $24,060 Mil.
Net Income was 2285.9031565 + 3607.8977552 + 2217.80241278 + 2695.92628516 = $10,808 Mil.
Non Operating Income was 349.36374153 + 214.320825823 + 626.344962504 + -195.441319108 = $995 Mil.
Cash Flow from Operations was 11945.2982978 + 7653.44912338 + 4041.73459407 + 1311.18655027 = $24,952 Mil.
Accounts Receivable was $16,303 Mil.
Revenue was 122352.780456 + 108046.303688 + 106200.094162 + 106498.255076 = $443,097 Mil.
Gross Profit was 18981.517197 + 19553.2492416 + 17220.9667294 + 17787.7538071 = $73,543 Mil.
Total Current Assets was $58,665 Mil.
Total Assets was $203,583 Mil.
Property, Plant and Equipment(Net PPE) was $121,817 Mil.
Depreciation, Depletion and Amortization(DDA) was $11,204 Mil.
Selling, General & Admin. Expense(SGA) was $17,968 Mil.
Total Current Liabilities was $82,509 Mil.
Long-Term Debt was $20,013 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)
=(17743.6787308 / 470867.404984) / (16303.4394086 / 443097.433383)
=0.03768296 / 0.03679425
=1.0242

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)
=(21705.8823529 / 443097.433383) / (21747.4797554 / 470867.404984)
=0.16597588 / 0.17389324
=0.9545

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 - (61644.3563047 + 137204.594282) / 228543.381259) / (1 - (58665.2201864 + 121817.100611) / 203582.931533)
=0.12992908 / 0.11347027
=1.145

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
=470867.404984 / 443097.433383
=1.0627

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))
=(11203.9801561 / (11203.9801561 + 121817.100611)) / (13289.1362476 / (13289.1362476 + 137204.594282))
=0.0842271 / 0.08830359
=0.9538

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)
=(20542.2938572 / 470867.404984) / (17967.6390923 / 443097.433383)
=0.04362649 / 0.04055009
=1.0759

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)
=((24060.4858701 + 94500.4131549) / 228543.381259) / ((20012.536162 + 82509.3217615) / 203582.931533)
=0.51876759 / 0.50358769
=1.0301

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
=(10807.5296096 - 994.58821075 - 24951.6685655) / 228543.381259
=-0.0662

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 Corporation has a M-score of -2.71 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 Corporation Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.83521.01940.84550.57011.2071.44621.1211.05251.0238
GMI 1.0961.3711.07081.3780.51021.18431.19811.1010.9543
AQI 1.28611.08771.65710.97270.99671.03111.03491.04291.145
SGI 1.38071.36341.33261.31340.90081.47221.36751.12891.0631
DEPI 0.99491.14271.032800.9740.95360.99791.01250.9539
SGAI 0.70230.75870.84170.90991.22950.91210.88480.97311.0755
LVGI 1.02351.01840.86971.01710.982311.03181.02721.0301
TATA -0.0606-0.0805-0.0754-0.0581-0.1176-0.1051-0.0735-0.0635-0.0667
M-score -2.37-2.23-2.30-2.78-3.22-2.02-2.26-2.55-2.71

China Petroleum & Chemical Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.48341.04731.0220.99550.90921.0242
GMI 1.06111.11721.0661.04471.02920.9545
AQI 1.16731.04291.04630.98361.09091.145
SGI 2.1751.13451.10371.11351.11961.0627
DEPI 0.95551.01261.23921.02281.19480.9538
SGAI 1.10650.97230.99070.97611.01771.0759
LVGI 1.02131.02720.97140.91361.00051.0301
TATA -0.0742-0.0627-0.0862-0.0689-0.0597-0.0662
M-score -2.18-2.53-2.68-2.65-2.66-2.71
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