Valiant Petroleum (LSE:VPP) Beneish M-Score : 0.00 (As of Sep. 26, 2024)

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What is Valiant Petroleum Beneish M-Score?

The zones of discrimination for M-Score is as such:

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.

The historical rank and industry rank for Valiant Petroleum's Beneish M-Score or its related term are showing as below:

During the past 6 years, the highest Beneish M-Score of Valiant Petroleum was 0.00. The lowest was 0.00. And the median was 0.00.

Valiant Petroleum Beneish M-Score Historical Data

The historical data trend for Valiant Petroleum'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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Valiant Petroleum Beneish M-Score Chart

Valiant Petroleum Annual Data

Trend

Sep06

Sep07

Dec08

Dec09

Dec10

Dec11

Beneish M-Score

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Valiant Petroleum Semi-Annual Data
	Mar08	Jun09	Dec09	Jun10	Dec10	Jun11	Dec11	Jun12
Beneish M-Score	Get a 7-Day Free Trial			-	-	-	-	-

Competitive Comparison of Valiant Petroleum's Beneish M-Score

For the Oil & Gas E&P subindustry, Valiant Petroleum'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.

Valiant Petroleum's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Valiant Petroleum's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Valiant Petroleum's Beneish M-Score falls into.

Valiant Petroleum 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 Valiant Petroleum for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1

0.528 * 0.8344

0.404 * 0.743

0.892 * 1.7984

0.115 * 1.1855

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 38.1683

4.679 * -0.249505

0.327 * 0.3828

-9.30

This Year (Dec11) TTM:

Last Year (Dec10) TTM:

Total Receivables was £0.0 Mil.
Revenue was £203.9 Mil.
Gross Profit was £111.7 Mil.
Total Current Assets was £54.5 Mil.
Total Assets was £368.4 Mil.
Property, Plant and Equipment(Net PPE) was £250.4 Mil.
Depreciation, Depletion and Amortization(DDA) was £40.7 Mil.
Selling, General, & Admin. Expense(SGA) was £8.5 Mil.
Total Current Liabilities was £53.8 Mil.
Long-Term Debt & Capital Lease Obligation was £2.8 Mil.
Net Income was £66.1 Mil.
Gross Profit was £0.0 Mil.
Cash Flow from Operations was £158.0 Mil.

Total Receivables was £0.0 Mil.
Revenue was £113.4 Mil.
Gross Profit was £51.8 Mil.
Total Current Assets was £86.0 Mil.
Total Assets was £340.0 Mil.
Property, Plant and Equipment(Net PPE) was £175.2 Mil.
Depreciation, Depletion and Amortization(DDA) was £34.8 Mil.
Selling, General, & Admin. Expense(SGA) was £0.1 Mil.
Total Current Liabilities was £58.8 Mil.
Long-Term Debt & Capital Lease Obligation was £77.5 Mil.

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)
	=	(0 / 203.942)	/	(0 / 113.401)
	=	0	/	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)
	=	(51.842 / 113.401)	/	(111.731 / 203.942)
	=	0.457156	/	0.547857
	=	0.8344

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 - (54.543 + 250.401) / 368.353)	/	(1 - (85.973 + 175.244) / 339.992)
	=	0.172142	/	0.231697
	=	0.743

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
	=	203.942	/	113.401
	=	1.7984

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))
	=	(34.808 / (34.808 + 175.244))	/	(40.689 / (40.689 + 250.401))
	=	0.165711	/	0.139782
	=	1.1855

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)
	=	(8.508 / 203.942)	/	(0.124 / 113.401)
	=	0.041718	/	0.001093
	=	38.1683

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)
	=	((2.766 + 53.753) / 368.353)	/	((77.491 + 58.794) / 339.992)
	=	0.153437	/	0.400848
	=	0.3828

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
	=	(66.109 - 0	-	158.015)	/	368.353
	=	-0.249505

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.

Valiant Petroleum has a M-score of -9.30 suggests that the company is unlikely to be a manipulator.

Valiant Petroleum Beneish M-Score Related Terms

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