Ecopetrol (Ecopetrol) Beneish M-Score : -2.18 (As of Apr. 24, 2024)

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What is Ecopetrol 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.

Good Sign:

Beneish M-Score -2.18 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

EC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.54 Med: -2.46 Max: -1.01
Current: -2.18

During the past 13 years, the highest Beneish M-Score of Ecopetrol was -1.01. The lowest was -3.54. And the median was -2.46.

Ecopetrol Beneish M-Score Historical Data

The historical data trend for Ecopetrol'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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Ecopetrol Beneish M-Score Chart

Ecopetrol Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-3.00

-2.28

-1.01

-1.78

-2.18

Ecopetrol Quarterly Data
	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Sep23	Dec23
Beneish M-Score	Get a 7-Day Free Trial															-1.84	-1.78	-1.88	-1.76	-2.18

Competitive Comparison of Ecopetrol's Beneish M-Score

For the Oil & Gas Integrated subindustry, Ecopetrol'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.

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

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

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

Ecopetrol 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 Ecopetrol 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 * 1.309

0.528 * 1.1417

0.404 * 0.9599

0.892 * 0.8926

0.115 * 2.1863

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1845

4.679 * 0.031738

0.327 * 0.9777

-1.97

This Year (Dec23) TTM:

Last Year (Sep22) TTM:

Total Receivables was $10,342 Mil.
Revenue was 8687.987 + 8663.635 + 8037.879 + 8326.579 = $33,716 Mil.
Gross Profit was 2868.985 + 3582.104 + 3325.623 + 3294.455 = $13,071 Mil.
Total Current Assets was $17,131 Mil.
Total Assets was $69,942 Mil.
Property, Plant and Equipment(Net PPE) was $35,260 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,414 Mil.
Selling, General, & Admin. Expense(SGA) was $1,163 Mil.
Total Current Liabilities was $10,877 Mil.
Long-Term Debt & Capital Lease Obligation was $22,536 Mil.
Net Income was 854.641 + 1254.291 + 1171.007 + 1432.876 = $4,713 Mil.
Non Operating Income was -435.354 + 26.881 + 132.16 + -40.839 = $-317 Mil.
Cash Flow from Operations was 0 + 0 + 428.445 + 2381.72 = $2,810 Mil.

Total Receivables was $8,851 Mil.
Revenue was 9798.892 + 11636.725 + 8271.372 + 8067.44 = $37,774 Mil.
Gross Profit was 4286.761 + 5517.269 + 3702.313 + 3212.997 = $16,719 Mil.
Total Current Assets was $15,342 Mil.
Total Assets was $63,023 Mil.
Property, Plant and Equipment(Net PPE) was $31,205 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,872 Mil.
Selling, General, & Admin. Expense(SGA) was $1,100 Mil.
Total Current Liabilities was $11,592 Mil.
Long-Term Debt & Capital Lease Obligation was $19,203 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)
	=	(10341.65 / 33716.08)	/	(8851.094 / 37774.429)
	=	0.306728	/	0.234314
	=	1.309

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)
	=	(16719.34 / 37774.429)	/	(13071.167 / 33716.08)
	=	0.44261	/	0.387683
	=	1.1417

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 - (17130.949 + 35260.283) / 69942.073)	/	(1 - (15342.435 + 31205.201) / 63022.689)
	=	0.250934	/	0.261415
	=	0.9599

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
	=	33716.08	/	37774.429
	=	0.8926

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))
	=	(2871.762 / (2871.762 + 31205.201))	/	(1413.624 / (1413.624 + 35260.283))
	=	0.084273	/	0.038546
	=	2.1863

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)
	=	(1163.406 / 33716.08)	/	(1100.459 / 37774.429)
	=	0.034506	/	0.029132
	=	1.1845

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)
	=	((22536.35 + 10876.647) / 69942.073)	/	((19202.913 + 11592.452) / 63022.689)
	=	0.477724	/	0.488639
	=	0.9777

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
	=	(4712.815 - -317.152	-	2810.165)	/	69942.073
	=	0.031738

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.

Ecopetrol has a M-score of -1.97 suggests that the company is unlikely to be a manipulator.

Ecopetrol Beneish M-Score Related Terms

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Ecopetrol (Ecopetrol) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Ecopetrol SA (NYSE:EC) » Definitions » Beneish M-Score

Traded in Other Exchanges

ECHA:Germany ECHA:Germany ECOPETROL:Columbia E1CO34:Brazil

Address

Carrera 13 No. 36 - 24, Main Building, Bogota, COL

Website

https://www.ecopetrol.com.co

Ecopetrol SA is a vertically integrated oil company with operations in Latin America and the United States Gulf Coast. Based out of Colombia, the company explores, develops, and conducts production activities in various countries. Ecopetrol works as the primary operator or partner in a joint venture, in a host of assets held onshore and offshore. Along with production, the company refines and markets crude oils and byproducts produced from its fields. Crude products are moved by Ecopetrol through a series of pipelines throughout Colombia, along with a network of third-party production centers and facilities.