Petroleo Brasileiro Petrobras (Petroleo Brasileiro Petrobras) Beneish M-Score

: -2.79 (As of Today)

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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.

Good Sign:

Beneish M-Score -2.79 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

PBR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.17 Med: -2.86 Max: -2.31
Current: -2.79

During the past 13 years, the highest Beneish M-Score of Petroleo Brasileiro Petrobras was -2.31. The lowest was -3.17. And the median was -2.86.

Petroleo Brasileiro Petrobras Beneish M-Score Historical Data

The historical data trend for Petroleo Brasileiro Petrobras'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.

* Premium members only.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => -2.63 [6] => -2.55 [7] => -2.92 [8] => -2.77 [9] => -2.79 )

Petroleo Brasileiro Petrobras Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

-2.63

-2.55

-2.92

-2.77

-2.79

Petroleo Brasileiro Petrobras Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Beneish M-Score																-2.77	-2.74	-2.83	-2.73	-2.79

Competitive Comparison

For the Oil & Gas Integrated subindustry, Petroleo Brasileiro Petrobras'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.

Petroleo Brasileiro Petrobras Beneish M-Score Distribution

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

* The bar in red indicates where Petroleo Brasileiro Petrobras's Beneish M-Score falls into.

Petroleo Brasileiro Petrobras 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 Petroleo Brasileiro Petrobras 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 * 1.4148

0.528 * 0.9901

0.404 * 1.0439

0.892 * 0.804

0.115 * 1.1386

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.5202

4.679 * -0.082371

0.327 * 0.9632

-2.71

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $7,243 Mil.
Revenue was 24042.93 + 26054.379 + 23002.198 + 26190.72 = $99,290 Mil.
Gross Profit was 13049.3 + 13836.8 + 11648.748 + 13807.091 = $52,342 Mil.
Total Current Assets was $32,136 Mil.
Total Assets was $215,003 Mil.
Property, Plant and Equipment(Net PPE) was $151,965 Mil.
Depreciation, Depletion and Amortization(DDA) was $12,975 Mil.
Selling, General, & Admin. Expense(SGA) was $8,022 Mil.
Total Current Liabilities was $33,538 Mil.
Long-Term Debt & Capital Lease Obligation was $50,592 Mil.
Net Income was 5505.379 + 5563.271 + 5833.884 + 7181.879 = $24,084 Mil.
Non Operating Income was 1749.83 + -2070.932 + 90.091 + -130.117 = $-361 Mil.
Cash Flow from Operations was 11105.41 + 11781.164 + 9146.29 + 10122.722 = $42,156 Mil.

Total Receivables was $6,368 Mil.
Revenue was 28412.106 + 33372.773 + 35639.377 + 26076.067 = $123,500 Mil.
Gross Profit was 13626.277 + 17026.694 + 19988.162 + 13820.153 = $64,461 Mil.
Total Current Assets was $31,503 Mil.
Total Assets was $188,704 Mil.
Property, Plant and Equipment(Net PPE) was $131,221 Mil.
Depreciation, Depletion and Amortization(DDA) was $12,909 Mil.
Selling, General, & Admin. Expense(SGA) was $6,564 Mil.
Total Current Liabilities was $31,634 Mil.
Long-Term Debt & Capital Lease Obligation was $45,027 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)
	=	(7243.449 / 99290.227)	/	(6368.062 / 123500.323)
	=	0.072952	/	0.051563
	=	1.4148

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)
	=	(64461.286 / 123500.323)	/	(52341.939 / 99290.227)
	=	0.521952	/	0.527161
	=	0.9901

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 - (32136.429 + 151964.847) / 215002.564)	/	(1 - (31502.602 + 131221.192) / 188704.116)
	=	0.143725	/	0.137678
	=	1.0439

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
	=	99290.227	/	123500.323
	=	0.804

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))
	=	(12908.921 / (12908.921 + 131221.192))	/	(12974.539 / (12974.539 + 151964.847))
	=	0.089564	/	0.078662
	=	1.1386

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)
	=	(8022.111 / 99290.227)	/	(6563.931 / 123500.323)
	=	0.080795	/	0.053149
	=	1.5202

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)
	=	((50592.218 + 33537.971) / 215002.564)	/	((45027.048 + 31633.653) / 188704.116)
	=	0.391299	/	0.406248
	=	0.9632

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
	=	(24084.413 - -361.128	-	42155.586)	/	215002.564
	=	-0.082371

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.

Petroleo Brasileiro Petrobras has a M-score of -2.71 suggests that the company is unlikely to be a manipulator.

Petroleo Brasileiro Petrobras Beneish M-Score Related Terms

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Petroleo Brasileiro Petrobras (Petroleo Brasileiro Petrobras) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Petroleo Brasileiro SA Petrobras (NYSE:PBR) » Definitions » Beneish M-Score

Traded in Other Exchanges

PBR.A:USA PBRN:Mexico PBRA:Mexico XPBRA:Spain XPBR:Spain PJXC:Germany PJXB:Germany PJXA:Germany PJX:Germany PJXC:Germany PJXB:Germany PJXA:Germany PJX:Germany PETR4:Brazil PETR3:Brazil

Address

Avenida Republica do Chile, 65, Rio de Janeiro, RJ, BRA, 20031-912

Website

https://www.petrobras.com.br

Petrobras is a Brazil-based integrated energy company controlled by the Brazilian government. The company focuses on exploration and production for oil and gas in Brazilian offshore fields. Production in 2022 was 2.7 million barrels of oil equivalent a day (80% oil production), and reserves stood at 10.5 billion boe (85% oil). At year-end 2022, Petrobras operated 11 refineries in Brazil with capacity of 1.9 million barrels a day and distributes refined products and natural gas throughout Brazil.