Baytex Energy (Baytex Energy) Beneish M-Score : -1.40 (As of Apr. 25, 2024)

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What is Baytex Energy 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.

Warning Sign:

Beneish M-Score -1.4 higher than -1.78, which implies that the company might have manipulated its financial results.

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

BTE' s Beneish M-Score Range Over the Past 10 Years
Min: -6.32 Med: -2.99 Max: -1.4
Current: -1.4

During the past 13 years, the highest Beneish M-Score of Baytex Energy was -1.40. The lowest was -6.32. And the median was -2.99.

Baytex Energy Beneish M-Score Historical Data

The historical data trend for Baytex Energy'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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Baytex Energy Beneish M-Score Chart

Baytex Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-2.99

-1.40

Baytex Energy 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	Get a 7-Day Free Trial															-	13.41	-	-1.40	-1.40

Competitive Comparison of Baytex Energy's Beneish M-Score

For the Oil & Gas E&P subindustry, Baytex Energy'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.

Baytex Energy's Beneish M-Score Distribution in the Oil & Gas Industry

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

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

Baytex Energy 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 Baytex Energy 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 * 1.3628

0.528 * 1.6241

0.404 * 3.2848

0.892 * 1.1354

0.115 * 0.8396

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1698

4.679 * -0.071817

0.327 * 1.6708

-1.38

This Year (Dec23) TTM:

Last Year (Dec22) TTM:

Total Receivables was $253 Mil.
Revenue was 794.212 + 859.515 + 450.67 + 405.858 = $2,510 Mil.
Gross Profit was 144.604 + 259.625 + 96.108 + 78.192 = $579 Mil.
Total Current Assets was $328 Mil.
Total Assets was $5,561 Mil.
Property, Plant and Equipment(Net PPE) was $5,028 Mil.
Depreciation, Depletion and Amortization(DDA) was $778 Mil.
Selling, General, & Admin. Expense(SGA) was $80 Mil.
Total Current Liabilities was $416 Mil.
Long-Term Debt & Capital Lease Obligation was $1,809 Mil.
Net Income was -466.48 + 94.176 + 160.773 + 37.595 = $-174 Mil.
Non Operating Income was -670.189 + -52.726 + -18.118 + 4.779 = $-736 Mil.
Cash Flow from Operations was 353.646 + 328.16 + 144.745 + 135.159 = $962 Mil.

Total Receivables was $163 Mil.
Revenue was 477.722 + 533.822 + 667.111 + 532.247 = $2,211 Mil.
Gross Profit was 145.876 + 192.697 + 284.478 + 204.497 = $828 Mil.
Total Current Assets was $180 Mil.
Total Assets was $3,757 Mil.
Property, Plant and Equipment(Net PPE) was $3,535 Mil.
Depreciation, Depletion and Amortization(DDA) was $448 Mil.
Selling, General, & Admin. Expense(SGA) was $60 Mil.
Total Current Liabilities was $212 Mil.
Long-Term Debt & Capital Lease Obligation was $687 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)
	=	(252.985 / 2510.255)	/	(163.495 / 2210.902)
	=	0.100781	/	0.073949
	=	1.3628

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)
	=	(827.548 / 2210.902)	/	(578.529 / 2510.255)
	=	0.374303	/	0.230466
	=	1.6241

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 - (327.984 + 5028.349) / 5561.219)	/	(1 - (179.65 + 3535.128) / 3756.915)
	=	0.036842	/	0.011216
	=	3.2848

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
	=	2510.255	/	2210.902
	=	1.1354

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))
	=	(448.049 / (448.049 + 3535.128))	/	(777.931 / (777.931 + 5028.349))
	=	0.112485	/	0.133981
	=	0.8396

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)
	=	(79.817 / 2510.255)	/	(60.093 / 2210.902)
	=	0.031796	/	0.02718
	=	1.1698

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)
	=	((1809.158 + 415.938) / 5561.219)	/	((687.262 + 212.388) / 3756.915)
	=	0.400109	/	0.239465
	=	1.6708

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
	=	(-173.936 - -736.254	-	961.71)	/	5561.219
	=	-0.071817

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.

Baytex Energy has a M-score of -1.38 signals that the company is likely to be a manipulator.

Baytex Energy Beneish M-Score Related Terms

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Baytex Energy (Baytex Energy) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Baytex Energy Corp (NYSE:BTE) » Definitions » Beneish M-Score

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B5X:Germany BTE:Canada

Address

2800, 520 - 3rd Avenue SW, Centennial Place, East Tower, Calgary, AB, CAN, T2P 0R3

Website

https://www.baytexenergy.com

Baytex Energy Corp is an oil and gas company. Geographically, the group operates in Canada and the United States. The company derives a majority of revenue from Canada. Its Canada segment includes the exploration, development, and production of crude oil and natural gas in Western Canada.