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GuruFocus has detected 8 Warning Signs with Statoil ASA $FRA:DNQA.
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Statoil ASA (FRA:DNQA)
Beneish M-Score
-3.04 (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.

Statoil ASA has a M-score of -3.00 suggests that the company is not a manipulator.

FRA:DNQA' s Beneish M-Score Range Over the Past 10 Years
Min: -3.59   Max: -2.24
Current: -3.04

-3.59
-2.24

During the past 13 years, the highest Beneish M-Score of Statoil ASA was -2.24. The lowest was -3.59. And the median was -2.75.


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 Statoil ASA 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 * 1.1007+0.528 * 1.0622+0.404 * 1.0189+0.892 * 0.9659+0.115 * 0.9554
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8464+4.679 * -0.1349-0.327 * 1.0415
=-3.00

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was €6,557 Mil.
Revenue was 14518.9340813 + 12092.1414352 + 10786.7771541 + 9696.51121396 = €47,094 Mil.
Gross Profit was 6212.24871435 + 3817.42345246 + 3558.76325403 + 3225.34709861 = €16,814 Mil.
Total Current Assets was €25,872 Mil.
Total Assets was €100,755 Mil.
Property, Plant and Equipment(Net PPE) was €56,203 Mil.
Depreciation, Depletion and Amortization(DDA) was €10,530 Mil.
Selling, General & Admin. Expense(SGA) was €681 Mil.
Total Current Liabilities was €17,005 Mil.
Long-Term Debt was €25,516 Mil.
Net Income was 992.987377279 + -2644.80045502 + -384.923817161 + -273.228907084 = €-2,310 Mil.
Non Operating Income was -28.9855072464 + -627.547634847 + 80.1924619086 + 79.2096831613 = €-497 Mil.
Cash Flow from Operations was 5582.04768583 + 1921.50914779 + 3259.37806291 + 1018.15592738 = €11,781 Mil.
Accounts Receivable was €6,167 Mil.
Revenue was 9083.15373563 + 12019.645644 + 12130.4464047 + 15523.4785708 = €48,757 Mil.
Gross Profit was 3320.76149425 + 4473.51510144 + 4117.43740533 + 6577.56393121 = €18,489 Mil.
Total Current Assets was €24,874 Mil.
Total Assets was €101,295 Mil.
Property, Plant and Equipment(Net PPE) was €57,989 Mil.
Depreciation, Depletion and Amortization(DDA) was €10,294 Mil.
Selling, General & Admin. Expense(SGA) was €833 Mil.
Total Current Liabilities was €13,918 Mil.
Long-Term Debt was €27,128 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)
=(6557.26975222 / 47094.3638846) / (6167.38505747 / 48756.7243551)
=0.13923683 / 0.12649301
=1.1007

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)
=(18489.2779322 / 48756.7243551) / (16813.7825195 / 47094.3638846)
=0.37921493 / 0.35702324
=1.0622

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 - (25871.9027583 + 56202.8985507) / 100754.558205) / (1 - (24874.2816092 + 57988.5057471) / 101294.899425)
=0.18539863 / 0.18196486
=1.0189

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
=47094.3638846 / 48756.7243551
=0.9659

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))
=(10294.27085 / (10294.27085 + 57988.5057471)) / (10530.1157679 / (10530.1157679 + 56202.8985507))
=0.15075941 / 0.1577947
=0.9554

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)
=(681.146047742 / 47094.3638846) / (833.207923334 / 48756.7243551)
=0.01446343 / 0.01708909
=0.8464

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)
=((25515.6615241 + 17005.14259) / 100754.558205) / ((27128.2327586 + 13917.9238506) / 101294.899425)
=0.42202363 / 0.40521445
=1.0415

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
=(-2309.96580199 - -497.130997023 - 11781.0908239) / 100754.558205
=-0.1349

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.

Statoil ASA has a M-score of -3.00 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 local exchange's currency.

Statoil ASA Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 1.31410.8980.98551.1351.08270.59641.32840.76570.95571.6031
GMI 1.04310.96390.89351.08430.98471.05361.24071.00081.04081.1468
AQI 1.05321.36320.86820.83851.37470.97620.86990.95471.03841.0496
SGI 1.04421.05280.79131.23691.2521.1490.77691.05710.68010.7942
DEPI 1.4131.07450.84911.07761.12550.92470.93630.74330.81941.3072
SGAI 1.33590.11731.32710.94450.94050.70670.88290.94981.32261.0757
LVGI 1.04491.02511.00231.03240.96440.56671.80071.03751.06071.0376
TATA -0.1239-0.0461-0.0864-0.0717-0.0565-0.0773-0.0498-0.1248-0.1612-0.1177
M-score -2.71-2.46-3.27-2.49-2.26-2.88-2.78-3.28-3.62-2.55

Statoil ASA Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.25841.16481.17650.84850.91320.93730.92921.14071.10451.1007
GMI 0.96291.06521.05321.03471.18051.09681.20151.20551.14751.0622
AQI 0.95580.98990.9610.9571.03721.08411.17021.12821.04961.0189
SGI 0.9270.84310.82650.78510.7380.73420.66720.70930.77140.9659
DEPI 0.82530.62470.59610.6420.76411.38071.46481.42841.34220.9554
SGAI 0.94921.10781.1571.24951.34771.31631.43021.23351.07440.8464
LVGI 1.03751.12541.10311.09691.06070.98561.01260.98661.03761.0415
TATA -0.1172-0.1445-0.1524-0.1716-0.1635-0.1061-0.1143-0.0976-0.1132-0.1349
M-score -2.92-3.22-3.28-3.73-3.56-3.19-3.23-2.89-3.01-3.00
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