Frontline Beneish M-Score Historical Data
The historical data trend for Frontline's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Frontline Annual Data
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Trend |
Dec13 |
Dec14 |
Dec15 |
Dec16 |
Dec17 |
Dec18 |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
| Beneish M-Score |
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-2.35 |
-2.63 |
-3.17 |
3.60 |
-2.20 |
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Frontline Quarterly Data
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Dec18 |
Mar19 |
Jun19 |
Sep19 |
Dec19 |
Mar20 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
| Beneish M-Score |
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-3.44 |
-2.20 |
-2.96 |
-2.12 |
-2.42 |
Competitive Comparison
For the Oil & Gas Midstream subindustry, Frontline's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Frontline Beneish M-Score Distribution
For the Oil & Gas industry and Energy sector, Frontline's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Frontline's Beneish M-Score falls into.
Frontline Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Frontline 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 | + | 0.528 * 0.4617 | + | 0.404 * 0.948 | + | 0.892 * 1.7217 | + | 0.115 * 0.9465 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.9629 | + | 4.679 * -0.064188 | - | 0.327 * 0.9296 |
| = | -2.42 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Sep23) TTM: | Last Year (Sep22) TTM: |
Total Receivables was $177 Mil.
Revenue was 377.085 + 512.763 + 497.332 + 530.141 = $1,917 Mil.
Gross Profit was 129.65 + 255.285 + 239.241 + 263.112 = $887 Mil.
Total Current Assets was $856 Mil.
Total Assets was $4,600 Mil.
Property, Plant and Equipment(Net PPE) was $3,567 Mil.
Depreciation, Depletion and Amortization(DDA) was $197 Mil.
Selling, General, & Admin. Expense(SGA) was $58 Mil.
Total Current Liabilities was $477 Mil.
Long-Term Debt & Capital Lease Obligation was $1,892 Mil.
Net Income was 107.743 + 230.674 + 199.626 + 239.053 = $777 Mil.
Non Operating Income was 27.305 + 37.345 + 1.092 + 28.776 = $95 Mil.
Cash Flow from Operations was 202.532 + 290.438 + 262.716 + 222.157 = $978 Mil.
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Total Receivables was $0 Mil.
Revenue was 382.186 + 300.44 + 217.441 + 213.547 = $1,114 Mil.
Gross Profit was 123.89 + 75.615 + 21.713 + 16.7 = $238 Mil.
Total Current Assets was $693 Mil.
Total Assets was $4,549 Mil.
Property, Plant and Equipment(Net PPE) was $3,670 Mil.
Depreciation, Depletion and Amortization(DDA) was $191 Mil.
Selling, General, & Admin. Expense(SGA) was $35 Mil.
Total Current Liabilities was $425 Mil.
Long-Term Debt & Capital Lease Obligation was $2,095 Mil.
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1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (177.45 / 1917.321) | / | (0 / 1113.614) |
| = | 0.092551 | / | 0 |
| | = | 1 |
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) |
| = | (237.918 / 1113.614) | / | (887.288 / 1917.321) |
| = | 0.213645 | / | 0.462775 |
| | = | 0.4617 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (855.805 + 3566.779) / 4600.015) | / | (1 - (693.119 + 3670.466) / 4548.661) |
| = | 0.038572 | / | 0.040688 |
| | = | 0.948 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 1917.321 | / | 1113.614 |
| | = | 1.7217 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (191.341 / (191.341 + 3670.466)) | / | (197.032 / (197.032 + 3566.779)) |
| = | 0.049547 | / | 0.052349 |
| | = | 0.9465 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (57.793 / 1917.321) | / | (34.86 / 1113.614) |
| = | 0.030143 | / | 0.031303 |
| | = | 0.9629 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((1891.816 + 476.941) / 4600.015) | / | ((2095.007 + 424.612) / 4548.661) |
| = | 0.514945 | / | 0.553925 |
| | = | 0.9296 |
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 |
| = | (777.096 - 94.518 | - | 977.843) | / | 4600.015 |
| | = | -0.064188 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Frontline has a M-score of -2.42 suggests that the company is unlikely to be a manipulator.
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