Quicksilver Resources (FRA:QSR) Beneish M-Score : -6.24 (As of May. 22, 2024)

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What is Quicksilver Resources 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 Quicksilver Resources's Beneish M-Score or its related term are showing as below:

FRA:QSR' s Beneish M-Score Range Over the Past 10 Years
Min: -11.45 Med: -2.85 Max: 1.06
Current: -6.24

During the past 13 years, the highest Beneish M-Score of Quicksilver Resources was 1.06. The lowest was -11.45. And the median was -2.85.

Quicksilver Resources Beneish M-Score Historical Data

The historical data trend for Quicksilver Resources'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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Quicksilver Resources Beneish M-Score Chart

Quicksilver Resources Annual Data

Trend

Dec05

Dec06

Dec07

Dec08

Dec09

Dec10

Dec11

Dec12

Dec13

Dec14

Beneish M-Score

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-2.71

-2.88

-11.45

-2.77

-2.94

Quicksilver Resources Quarterly Data
	Dec10	Mar11	Jun11	Sep11	Dec11	Mar12	Jun12	Sep12	Dec12	Mar13	Jun13	Sep13	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15
Beneish M-Score	Get a 7-Day Free Trial															-4.24	-2.94	-3.50	-4.34	-6.24

Competitive Comparison of Quicksilver Resources's Beneish M-Score

For the Oil & Gas E&P subindustry, Quicksilver Resources'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.

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

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

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

Quicksilver Resources 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 Quicksilver Resources 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 * 0.5295

0.528 * 0.7814

0.404 * 0.2118

0.892 * 1.0037

0.115 * 0.5489

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1629

4.679 * -0.635702

0.327 * 0.1896

-6.13

This Year (Sep15) TTM:

Last Year (Sep14) TTM:

Total Receivables was €24.5 Mil.
Revenue was 52.557 + 56.467 + 96.795 + 159.047 = €364.9 Mil.
Gross Profit was 17.455 + 16.088 + 42.995 + 95.803 = €172.3 Mil.
Total Current Assets was €196.9 Mil.
Total Assets was €595.6 Mil.
Property, Plant and Equipment(Net PPE) was €392.8 Mil.
Depreciation, Depletion and Amortization(DDA) was €51.0 Mil.
Selling, General, & Admin. Expense(SGA) was €43.1 Mil.
Total Current Liabilities was €191.1 Mil.
Long-Term Debt & Capital Lease Obligation was €0.0 Mil.
Net Income was -164.133 + -153.091 + -106.895 + -25.894 = €-450.0 Mil.
Non Operating Income was -10.572 + -74.212 + -82.738 + -4.3 = €-171.8 Mil.
Cash Flow from Operations was -0.887 + 22.164 + 81.303 + -2.146 = €100.4 Mil.

Total Receivables was €46.2 Mil.
Revenue was 126.874 + 86.872 + 66.361 + 83.398 = €363.5 Mil.
Gross Profit was 70.499 + 29.883 + 13.643 + 20.132 = €134.2 Mil.
Total Current Assets was €307.5 Mil.
Total Assets was €984.2 Mil.
Property, Plant and Equipment(Net PPE) was €630.5 Mil.
Depreciation, Depletion and Amortization(DDA) was €42.5 Mil.
Selling, General, & Admin. Expense(SGA) was €36.9 Mil.
Total Current Liabilities was €84.2 Mil.
Long-Term Debt & Capital Lease Obligation was €1,581.4 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)
	=	(24.535 / 364.866)	/	(46.165 / 363.505)
	=	0.067244	/	0.127
	=	0.5295

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)
	=	(134.157 / 363.505)	/	(172.341 / 364.866)
	=	0.369065	/	0.472341
	=	0.7814

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 - (196.915 + 392.771) / 595.601)	/	(1 - (307.529 + 630.484) / 984.167)
	=	0.009931	/	0.046897
	=	0.2118

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
	=	364.866	/	363.505
	=	1.0037

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))
	=	(42.451 / (42.451 + 630.484))	/	(50.998 / (50.998 + 392.771))
	=	0.063083	/	0.11492
	=	0.5489

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)
	=	(43.093 / 364.866)	/	(36.918 / 363.505)
	=	0.118106	/	0.101561
	=	1.1629

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)
	=	((0 + 191.135) / 595.601)	/	((1581.367 + 84.215) / 984.167)
	=	0.320911	/	1.692377
	=	0.1896

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
	=	(-450.013 - -171.822	-	100.434)	/	595.601
	=	-0.635702

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.

Quicksilver Resources has a M-score of -6.13 suggests that the company is unlikely to be a manipulator.

Quicksilver Resources Beneish M-Score Related Terms

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Quicksilver Resources (FRA:QSR) Business Description

Industry

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Address

Website

http://www.qrinc.com

Quicksilver Resources Inc was organized as a Delaware corporation in 1997 and became a public company in 1999. It is an independent oil and gas company engaged in the acquisition, exploration, development and production of onshore oil and natural gas in North America and are based in Fort Worth, Texas. The Company focuses on unconventional reservoirs where hydrocarbons may be found in challenging geological conditions, such as fractured shales and coalbeds. Its producing oil and natural gas properties in the United States are principally located in Texas and in Canada in Alberta and British Columbia. Its three core development areas include: Barnett Shale; Horn River; and Horseshoe Canyon. Additionally, It has an oil exploration opportunity in the Delaware basin in western Texas. The Company competes for acquisitions of prospective oil and natural gas properties and oil and gas reserves. Its oil and natural gas operations are focused onshore in North America, in basins containing unconventional reservoirs with predictable, long-lived production. Its current production and development operations are concentrated in its three core areas: the Barnett Shale, Horn River and Horseshoe Canyon. The Company compete for acquisitions of prospective oil and natural gas properties and oil and natural gas reserves. It also compete for drilling rigs and equipment used to drill for and produce oil and natural gas. The Company is subject to a number of federal, state, provincial and local laws and regulations, whose purpose is to protect the health and safety of workers, both generally and within Its industry.