GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » SandRidge Energy Inc (NYSE:SD) » Definitions » Beneish M-Score

SD (SandRidge Energy) Beneish M-Score : -2.58 (As of Oct. 31, 2024)


View and export this data going back to 2016. Start your Free Trial

What is SandRidge 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.

Good Sign:

Beneish M-Score -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

SD' s Beneish M-Score Range Over the Past 10 Years
Min: -23.65   Med: -2.92   Max: 100.53
Current: -2.58

During the past 13 years, the highest Beneish M-Score of SandRidge Energy was 100.53. The lowest was -23.65. And the median was -2.92.


SandRidge Energy Beneish M-Score Historical Data

The historical data trend for SandRidge 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.

* Premium members only.

SandRidge Energy Beneish M-Score Chart

SandRidge Energy 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 -23.65 -3.98 -2.75 44.61 -3.17

SandRidge Energy 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 75.38 100.53 -3.17 -2.72 -2.58

Competitive Comparison of SandRidge Energy's Beneish M-Score

For the Oil & Gas E&P subindustry, SandRidge 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.


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

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

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



SandRidge 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 SandRidge Energy 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 * 1.5436+0.528 * 1.457+0.404 * 0.8809+0.892 * 0.6304+0.115 * 0.8466
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.8366+4.679 * -0.072462-0.327 * 0.8772
=-2.58

* 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 $23.3 Mil.
Revenue was 25.977 + 30.283 + 33.926 + 38.149 = $128.3 Mil.
Gross Profit was 9.384 + 11.741 + 15.772 + 18.814 = $55.7 Mil.
Total Current Assets was $237.2 Mil.
Total Assets was $529.6 Mil.
Property, Plant and Equipment(Net PPE) was $238.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $23.5 Mil.
Selling, General, & Admin. Expense(SGA) was $11.7 Mil.
Total Current Liabilities was $46.2 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 Mil.
Net Income was 8.794 + 11.125 + 1.792 + 18.67 = $40.4 Mil.
Non Operating Income was 0.002 + 0.009 + -0.064 + -0.011 = $-0.1 Mil.
Cash Flow from Operations was 11.412 + 15.681 + 26.219 + 25.507 = $78.8 Mil.
Total Receivables was $23.9 Mil.
Revenue was 33.419 + 43.147 + 56.112 + 70.899 = $203.6 Mil.
Gross Profit was 16.518 + 22.63 + 37.844 + 51.765 = $128.8 Mil.
Total Current Assets was $254.5 Mil.
Total Assets was $562.1 Mil.
Property, Plant and Equipment(Net PPE) was $242.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $20.0 Mil.
Selling, General, & Admin. Expense(SGA) was $10.1 Mil.
Total Current Liabilities was $55.8 Mil.
Long-Term Debt & Capital Lease Obligation was $0.0 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)
=(23.264 / 128.335) / (23.908 / 203.577)
=0.181276 / 0.11744
=1.5436

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)
=(128.757 / 203.577) / (55.711 / 128.335)
=0.632473 / 0.434106
=1.457

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 - (237.162 + 238.628) / 529.571) / (1 - (254.494 + 242.766) / 562.061)
=0.101556 / 0.115292
=0.8809

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
=128.335 / 203.577
=0.6304

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))
=(19.95 / (19.95 + 242.766)) / (23.513 / (23.513 + 238.628))
=0.075938 / 0.089696
=0.8466

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)
=(11.732 / 128.335) / (10.133 / 203.577)
=0.091417 / 0.049775
=1.8366

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 + 46.157) / 529.571) / ((0 + 55.844) / 562.061)
=0.087159 / 0.099356
=0.8772

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
=(40.381 - -0.064 - 78.819) / 529.571
=-0.072462

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.

SandRidge Energy has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.


SandRidge Energy Beneish M-Score Related Terms

Thank you for viewing the detailed overview of SandRidge Energy's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


SandRidge Energy Business Description

Traded in Other Exchanges
Address
1 East Sheridan Avenue, Suite 500, Oklahoma City, OK, USA, 73104
SandRidge Energy Inc is a United States-based oil and natural gas company. It is engaged in the exploration, development, and production of crude oil, natural gas, and Natural gas liquids. Business activities of the group include Exploration and Production, Drilling and Oil Field Services, and Midstream Gas Services.
Executives
Brown Brandon Louis Sr. officer: SVP, Chief Financial Officer C/O SANDRIDGE ENERGY, INC., 1 EAST SHERIDAN, SUITE 500, OKLAHOMA CITY OK 73104
Grayson R Pranin officer: SVP, Chief Operating Officer 1 EAST SHERIDAN AVENUE, SUITE 500, OKLAHOMA CITY OK 73104
Nancy Martori Dunlap director C/O CVR REFINING, LP, 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND TX 77479
Jaffrey Adam Firestone director C/O CVR ENERGY, INC., 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND TX 77479
Salah Gamoudi officer: CFO/CAO C/O SANDRIDGE ENERGY, INC., 123 ROBERT S. KERR AVENUE, OKLAHOMA CITY OK 73102
Patricia A. Agnello director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Carl Fredrick Giesler officer: President and CEO 10000 ENERGY DRIVE, P. O. BOX 12359, SPRING TX 77391-2359
Randolph C Read director C/O NEW YORK REIT, INC., 405 PARK AVENUE, NEW YORK NY 10022
Paul D. Mckinney officer: President & CEO 1177 WEST LOOP SOUTH, SUITE 1825, HOUSTON TX 77027
Jonathan Christodoro director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
John J Lipinski director C/O CVR ENERGY, INC., 2277 PLAZA DRIVE, SUITE 500, SUGAR LAND TX 77479
Bob G Alexander director 6017 MORNING DOVE LANE, EDMOND OK 73025
Jonathan Frates director C/O ICAHN ENTERPRISES L.P., 16690 COLLINS AVE., PH, SUNNY ISLES FL 33160
Kenneth H Beer director 625 E. KALISTE SALOOM RD., LAFAYETTE LA 70508
Sylvia K. Barnes director 4853 POST OAK TIMBER DRIVE, HOUSTON TX 77056