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China Petroleum & Chemical Corp (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 Corp has a M-score of -3.87 suggests that the company is not a manipulator.

SNP' s 10-Year Beneish M-Score Range
Min: -3.29   Max: -0.23
Current: 0

-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 * 0+0.528 * 0.9501+0.404 * 0+0.892 * 0.7248+0.115 * 0.1299
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1116+4.679 * -0.327 * 0
=-3.87

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

This Year (Dec14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $0 Mil.
Revenue was 0 + 114773.376561 + 103849.829904 + 121894.468225 = $340,518 Mil.
Gross Profit was 0 + 20288.0942445 + 20156.1639397 + 21665.1300626 = $62,109 Mil.
Total Current Assets was $0 Mil.
Total Assets was $0 Mil.
Property, Plant and Equipment(Net PPE) was $0 Mil.
Depreciation, Depletion and Amortization(DDA) was $25,189 Mil.
Selling, General & Admin. Expense(SGA) was $15,859 Mil.
Total Current Liabilities was $0 Mil.
Long-Term Debt was $0 Mil.
Net Income was 0 + 2956.69758932 + 2287.54252389 + 2277.2472835 = $7,521 Mil.
Non Operating Income was 0 + 148.781818765 + -351.854851774 + 492.426736911 = $289 Mil.
Cash Flow from Operations was 23971.0112142 + 0 + 2044.54884173 + 11900.0658545 = $37,916 Mil.
Accounts Receivable was $13,083 Mil.
Revenue was 118411.764706 + 117325.236387 + 111918.101368 + 122136.852238 = $469,792 Mil.
Gross Profit was 21645.5882353 + 18014.183241 + 20312.9525342 + 21440.0770095 = $81,413 Mil.
Total Current Assets was $61,558 Mil.
Total Assets was $215,586 Mil.
Property, Plant and Equipment(Net PPE) was $126,835 Mil.
Depreciation, Depletion and Amortization(DDA) was $18,936 Mil.
Selling, General & Admin. Expense(SGA) was $19,683 Mil.
Total Current Liabilities was $88,574 Mil.
Long-Term Debt was $17,267 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)
=(0 / 340517.67469) / (13083.0065359 / 469791.954699)
=0 / 0.02784851
=0

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)
=(20288.0942445 / 469791.954699) / (0 / 340517.67469)
=0.17329543 / 0.18239696
=0.9501

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 - (0 + 0) / 0) / (1 - (61558.0065359 + 126834.640523) / 215585.784314)
= / 0.12613604
=0

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
=340517.67469 / 469791.954699
=0.7248

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))
=(18936.110885 / (18936.110885 + 126834.640523)) / (25188.7625173 / (25188.7625173 + 0))
=0.12990336 / 1
=0.1299

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)
=(15859.3743562 / 340517.67469) / (19683.3328556 / 469791.954699)
=0.04657431 / 0.04189798
=1.1116

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)
=((0 + 0) / 0) / ((17267.4836601 + 88573.5294118) / 215585.784314)
= / 0.49094616
=0

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
=(7521.48739672 - 289.353703903 - 37915.6259104) / 0
=

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 -3.87 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Mar14
DSRI 1.68310.53811.33440.45662.27561.13931.04041.24660.8136
GMI 1.3711.07081.01581.3780.51021.18431.19811.06570.9858
AQI 1.08771.65711.15320.97270.99671.03111.03490.98621.2108
SGI 1.36151.32861.2081.33290.9031.46051.3721.13241.0609
DEPI 1.14271.03280.8941.06350.9740.95360.99791.01250.9539
SGAI 0.75870.84170.83450.90991.22950.91210.88480.97311.073
LVGI 1.01840.86971.0451.01710.982311.03181.09530.9661
TATA -0.0805-0.07540.07-0.0581-0.1176-0.1051-0.0735-0.0639-0.0673
M-score -1.62-2.59-1.59-2.75-2.24-2.31-2.33-2.43-2.84

China Petroleum & Chemical Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Dec14
DSRI 0.59980.86061.24271.04470.97040.87420.81240.77571.0883
GMI 1.06091.07931.08061.01711.0120.99760.98690.9920.9459
AQI 1.16731.17550.98621.04630.98361.09091.21081.15521.2062
SGI 2.181.44681.1361.10311.11141.12091.06261.03131.001
DEPI 0.98267.07281.84011.83271.61931.08840.67040.65350.6555
SGAI 1.10641.03380.97230.99090.97631.01771.07321.08481.1139
LVGI 1.02130.94811.09530.97140.91361.00050.96611.05061.0725
TATA -0.0997-0.1436-0.063-0.0864-0.0495-0.0663-0.0731-0.0772-0.0712
M-score -2.19-2.06-2.32-2.62-2.54-2.76-2.90-3.03-2.76
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