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China Petroleum & Chemical Corp (NYSE:SNP)
Beneish M-Score
-2.32 (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 -2.36 suggests that the company is not a manipulator.

SNP' s 10-Year Beneish M-Score Range
Min: -3.11   Max: -0.41
Current: -2.32

-3.11
-0.41

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical Corp was -0.41. The lowest was -3.11. And the median was -2.42.


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 * 1.9412+0.528 * 0.8618+0.404 * 1.1397+0.892 * 0.6289+0.115 * 0.8132
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1235+4.679 * -0.0927-0.327 * 0.7653
=-2.36

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

This Year (Mar15) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $10,177 Mil.
Revenue was 76658.384894 + 0 + 114773.376561 + 103849.829904 = $295,282 Mil.
Gross Profit was 19129.7727054 + 0 + 20288.0942445 + 20156.1639397 = $59,574 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 $25,336 Mil.
Selling, General & Admin. Expense(SGA) was $14,438 Mil.
Total Current Liabilities was $77,364 Mil.
Long-Term Debt was $14,022 Mil.
Net Income was 348.155034783 + 0 + 2956.69758932 + 2287.54252389 = $5,592 Mil.
Non Operating Income was 56.9037925176 + 0 + 148.781818765 + -351.854851774 = $-146 Mil.
Cash Flow from Operations was 1071.07363832 + 23971.0112142 + 0 + 2044.54884173 = $27,087 Mil.
Accounts Receivable was $8,337 Mil.
Revenue was 121894.468225 + 118411.764706 + 117325.236387 + 111918.101368 = $469,550 Mil.
Gross Profit was 21665.1300626 + 21645.5882353 + 18014.183241 + 20312.9525342 = $81,638 Mil.
Total Current Assets was $61,411 Mil.
Total Assets was $227,678 Mil.
Property, Plant and Equipment(Net PPE) was $136,685 Mil.
Depreciation, Depletion and Amortization(DDA) was $19,620 Mil.
Selling, General & Admin. Expense(SGA) was $20,435 Mil.
Total Current Liabilities was $94,143 Mil.
Long-Term Debt was $23,969 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)
=(10177.1230725 / 295281.591359) / (8336.84557129 / 469549.570686)
=0.03446582 / 0.01775498
=1.9412

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)
=(0 / 469549.570686) / (19129.7727054 / 295281.591359)
=0.17386419 / 0.20175328
=0.8618

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 - (57285.9295355 + 138814.477607) / 230188.022954) / (1 - (61410.9318406 + 136685.051037) / 227677.971683)
=0.14808597 / 0.12992908
=1.1397

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
=295281.591359 / 469549.570686
=0.6289

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))
=(19619.5525397 / (19619.5525397 + 136685.051037)) / (25336.4901906 / (25336.4901906 + 138814.477607))
=0.12552127 / 0.15434871
=0.8132

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)
=(14438.3480968 / 295281.591359) / (20435.140195 / 469549.570686)
=0.04889688 / 0.04352073
=1.1235

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)
=((14022.0562306 + 77364.1522136) / 230188.022954) / ((23969.3776753 + 94142.5749095) / 227677.971683)
=0.39700679 / 0.51876759
=0.7653

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
=(5592.395148 - -146.169240491 - 27086.6336942) / 230188.022954
=-0.0927

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 -2.36 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.68310.53811.33440.45662.27561.13931.04041.24660.60181.3261
GMI 1.3711.07081.01581.3780.52491.15121.19811.06570.98581.0149
AQI 1.08771.65711.15320.97270.99671.03111.03490.98621.21081.114
SGI 1.36151.32861.2081.33290.9031.46051.3721.13241.06090.9629
DEPI 1.14271.03280.8941.06351.03650.89610.99791.01250.95390.9611
SGAI 0.75870.84170.83450.90991.22780.91340.88480.97311.0731.0219
LVGI 1.01840.86971.0451.01710.982311.03181.09530.96611.003
TATA -0.0805-0.07540.07-0.0581-0.1042-0.1051-0.0735-0.0639-0.0667-0.0705
M-score -1.62-2.59-1.59-2.75-2.16-2.34-2.33-2.43-3.03-2.50

China Petroleum & Chemical Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Dec14Mar15
DSRI 1.07751.24271.04470.97040.87420.60080.77571.08831.9412
GMI 1.27271.0651.02051.01470.99241.0010.99740.94590.8618
AQI 1.17550.98621.04630.98361.09091.21081.15521.20621.1397
SGI 1.15551.1361.10311.11141.12091.06261.03131.0010.6289
DEPI 11.11451.22441.23441.02130.69260.67040.65350.65550.8132
SGAI 1.29440.97230.99090.97631.01771.07321.08481.11391.1235
LVGI 0.94811.09530.97140.91361.00050.96611.05061.07250.7653
TATA -0.0176-0.063-0.0864-0.0495-0.0663-0.0724-0.0766-0.0706-0.0927
M-score -1.01-2.40-2.68-2.60-2.80-3.08-3.03-2.76-2.36
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