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APA (APA) Beneish M-Score : -1.77 (As of Oct. 31, 2024)


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What is APA 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 -1.77 higher than -1.78, which implies that the company might have manipulated its financial results.

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

APA' s Beneish M-Score Range Over the Past 10 Years
Min: -6.72   Med: -2.98   Max: -1.72
Current: -1.77

During the past 13 years, the highest Beneish M-Score of APA was -1.72. The lowest was -6.72. And the median was -2.98.


APA Beneish M-Score Historical Data

The historical data trend for APA'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.

APA Beneish M-Score Chart

APA Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -1.72 -2.82 -2.74 -3.39 -1.93

APA Quarterly Data
Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.66 -3.32 -1.93 -2.11 -1.77

Competitive Comparison of APA's Beneish M-Score

For the Oil & Gas E&P subindustry, APA'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.


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

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

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



APA 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 APA 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 * 1.4501+0.528 * 1.0628+0.404 * 1.4487+0.892 * 0.9788+0.115 * 1.1147
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.068+4.679 * 0.005942-0.327 * 0.7698
=-1.77

* 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 (Jun24) TTM:Last Year (Jun23) TTM:
Total Receivables was $1,936 Mil.
Revenue was 2543 + 1951 + 2167 + 2308 = $8,969 Mil.
Gross Profit was 1164 + 936 + 1111 + 1196 = $4,407 Mil.
Total Current Assets was $2,918 Mil.
Total Assets was $20,195 Mil.
Property, Plant and Equipment(Net PPE) was $14,456 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,859 Mil.
Selling, General, & Admin. Expense(SGA) was $392 Mil.
Total Current Liabilities was $2,889 Mil.
Long-Term Debt & Capital Lease Obligation was $6,741 Mil.
Net Income was 541 + 132 + 1773 + 459 = $2,905 Mil.
Non Operating Income was 134 + -90 + -294 + -4 = $-254 Mil.
Cash Flow from Operations was 877 + 368 + 1030 + 764 = $3,039 Mil.
Total Receivables was $1,364 Mil.
Revenue was 1796 + 2008 + 2472 + 2887 = $9,163 Mil.
Gross Profit was 859 + 1061 + 1324 + 1541 = $4,785 Mil.
Total Current Assets was $2,599 Mil.
Total Assets was $13,244 Mil.
Property, Plant and Equipment(Net PPE) was $9,368 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,363 Mil.
Selling, General, & Admin. Expense(SGA) was $375 Mil.
Total Current Liabilities was $2,630 Mil.
Long-Term Debt & Capital Lease Obligation was $5,574 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)
=(1936 / 8969) / (1364 / 9163)
=0.215855 / 0.14886
=1.4501

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)
=(4785 / 9163) / (4407 / 8969)
=0.522209 / 0.491359
=1.0628

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 - (2918 + 14456) / 20195) / (1 - (2599 + 9368) / 13244)
=0.139688 / 0.096421
=1.4487

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
=8969 / 9163
=0.9788

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))
=(1363 / (1363 + 9368)) / (1859 / (1859 + 14456))
=0.127015 / 0.113944
=1.1147

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)
=(392 / 8969) / (375 / 9163)
=0.043706 / 0.040925
=1.068

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)
=((6741 + 2889) / 20195) / ((5574 + 2630) / 13244)
=0.476851 / 0.61945
=0.7698

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
=(2905 - -254 - 3039) / 20195
=0.005942

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.

APA has a M-score of -1.77 signals that the company is likely to be a manipulator.


APA Business Description

Address
2000 Post Oak Boulevard, Suite 100, One Post Oak Central, Houston, TX, USA, 77056-4400
Based in Houston, APA is an independent exploration and production company. It operates primarily in the US, Egypt, the North Sea, and Suriname. At year-end 2023, proved reserves totaled 807 million barrels of oil equivalent, with net reported production of 405 thousand boe/day that year (64% of which was oil and natural gas liquids, with the remainder natural gas).
Executives
Tracey K Henderson officer: Executive VP Exploration C/O APA CORPORATION, 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
Mark D Maddox officer: Executive VP - Administration C/O APA CORPORATION, 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
P Anthony Lannie officer: Exec. Vice Pres & Gen Counsel C/O APACHE CORPORATION, 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056
Chansoo Joung director C/O WARBURG PINCUS LLC, 450 LEXINGTON AVENUE, NEW YORK NY 10017
David L Stover director NOBLE ENERGY, INC., 1001 NOBLE ENERGY WAY, HOUSTON TX 77070
Charles W Hooper director C/O APA CORPORATION, 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
D. Clay Bretches officer: Exec. VP, Operations C/O APACHE CORPORATION, 2000 POST OAK BLVD, STE 100, HOUSTON TX 77056
Rebecca A Hoyt officer: Sr. VP, Chief Acct Officer C/O APACHE CORPORATION, 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056-4400
Annell R Bay director C/O MARATHON OIL CORPORATION, 5555 SAN FELIPE ST, HOUSTON TX 77056
Lamar Mckay director 2000 POST OAK BLVD STE 100, HOUSTON TX 77056
John E Lowe director 600 N DAIRY ASHFORD, HOUSTON TX 77079
Amy H Nelson director 2000 POST OAK BLVD., SUITE 100, HOUSTON TX 77056
Rene R Joyce director P.O. BOX 130430, HOUSTON TX 77219-0430
Daniel Wayne Rabun director 6 CHESTERFIELD GARDENS, 3RD FLOOR, LONDON X0 W1J 5BQ
Peter A Ragauss director 2929 ALLEN PARKWAY, SUITE 2100, HOUSTON TX 77019