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China Petroleum & Chemical Corp (NYSE:SNP)
Beneish M-Score
-2.90 (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 -2.91 suggests that the company is not a manipulator.

SNP' s 10-Year Beneish M-Score Range
Min: -3.37   Max: 0.69
Current: -2.9

-3.37
0.69

During the past 13 years, the highest Beneish M-Score of China Petroleum & Chemical Corp was 0.69. The lowest was -3.37. And the median was -2.48.


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 * 0.8514+0.528 * 0.9923+0.404 * 1.1552+0.892 * 1.0275+0.115 * 0.91
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0849+4.679 * -0.0719-0.327 * 1.0506
=-2.91

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $17,133 Mil.
Revenue was 102982.329317 + 122357.7921 + 118741.602491 + 117325.236387 = $461,407 Mil.
Gross Profit was 19987.7911647 + 21747.4797554 + 21705.8823529 + 18014.183241 = $81,455 Mil.
Total Current Assets was $65,206 Mil.
Total Assets was $226,244 Mil.
Property, Plant and Equipment(Net PPE) was $131,349 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,685 Mil.
Selling, General & Admin. Expense(SGA) was $20,623 Mil.
Total Current Liabilities was $92,941 Mil.
Long-Term Debt was $23,412 Mil.
Net Income was 2268.43373494 + 2285.9031565 + 3607.8977552 + 2217.80241278 = $10,380 Mil.
Non Operating Income was -348.915662651 + 494.298463064 + 214.320825823 + 626.344962504 = $986 Mil.
Cash Flow from Operations was 2027.46987952 + 11945.2982978 + 7653.44912338 + 4041.73459407 = $25,668 Mil.
Accounts Receivable was $19,584 Mil.
Revenue was 112442.774006 + 122352.780456 + 108046.303688 + 106200.094162 = $449,042 Mil.
Gross Profit was 20408.1797608 + 21477.9813565 + 19553.2492416 + 17220.9667294 = $78,660 Mil.
Total Current Assets was $64,736 Mil.
Total Assets was $210,809 Mil.
Property, Plant and Equipment(Net PPE) was $122,127 Mil.
Depreciation, Depletion and Amortization(DDA) was $11,471 Mil.
Selling, General & Admin. Expense(SGA) was $18,499 Mil.
Total Current Liabilities was $87,748 Mil.
Long-Term Debt was $15,451 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)
=(17133.1726908 / 461406.960296) / (19584.2224378 / 449041.952313)
=0.03713245 / 0.04361335
=0.8514

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)
=(21747.4797554 / 449041.952313) / (19987.7911647 / 461406.960296)
=0.17517378 / 0.17653686
=0.9923

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 - (65205.9437751 + 131349.236948) / 226243.694779) / (1 - (64735.6935015 + 122127.384416) / 210809.408341)
=0.13122361 / 0.11359232
=1.1552

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
=461406.960296 / 449041.952313
=1.0275

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))
=(11470.8947319 / (11470.8947319 + 122127.384416)) / (13684.6048338 / (13684.6048338 + 131349.236948))
=0.0858611 / 0.09435456
=0.91

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)
=(20623.0365488 / 461406.960296) / (18499.2903586 / 449041.952313)
=0.04469598 / 0.04119724
=1.0849

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)
=((23411.5662651 + 92941.3654618) / 226243.694779) / ((15450.5334627 + 87747.6559974) / 210809.408341)
=0.51428143 / 0.48953313
=1.0506

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
=(10380.0370594 - 986.048588741 - 25667.9518948) / 226243.694779
=-0.0719

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 -2.91 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 0.83521.01940.84550.57011.2071.44621.1211.05250.9272
GMI 1.0961.3711.07081.3780.51021.18431.19811.06570.9858
AQI 1.28611.08771.65710.97270.99671.03111.03490.98621.2108
SGI 1.38071.36341.33261.31340.90081.47221.36751.12891.0631
DEPI 0.99491.14271.032800.9740.95360.99791.01250.9539
SGAI 0.70230.75870.84170.90991.22950.91210.88480.97311.073
LVGI 1.02351.01840.86971.01710.982311.03181.09530.9661
TATA -0.0606-0.0805-0.0754-0.0581-0.1176-0.1051-0.0735-0.0639-0.0673
M-score -2.37-2.23-2.30-2.78-3.22-2.02-2.26-2.61-2.73

China Petroleum & Chemical Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.48341.04731.0220.99550.90920.92750.8514
GMI 1.06111.08061.02431.0120.99770.98690.9923
AQI 1.16730.98621.04630.98361.09091.21081.1552
SGI 2.1751.13451.10371.11351.11961.06271.0275
DEPI 0.95551.01261.23921.02281.19480.95380.91
SGAI 1.10650.97230.99070.97611.01771.07331.0849
LVGI 1.02131.09530.97140.91361.00050.96611.0506
TATA -0.0742-0.0631-0.0862-0.0689-0.0597-0.0669-0.0719
M-score -2.18-2.60-2.70-2.67-2.68-2.73-2.91
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