ESV has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
The zones of discrimination for M-Score is as such:
An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.
During the past 13 years, the highest Beneish M-Score of Ensco PLC was 0.02. The lowest was -4.68. And the median was -2.52.
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 Ensco PLC 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 * 0.9555||+||0.528 * 0.9771||+||0.404 * 0.1865||+||0.892 * 1.0572||+||0.115 * 0.7608|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.7967||+||4.679 * -0.3633||-||0.327 * 1.489|
|This Year (Mar15) TTM:||Last Year (Mar14) TTM:|
|Accounts Receivable was $781 Mil.|
Revenue was 1163.9 + 970.4 + 1261.2 + 1203 = $4,599 Mil.
Gross Profit was 645.6 + 553.5 + 729.8 + 627 = $2,556 Mil.
Total Current Assets was $3,054 Mil.
Total Assets was $16,346 Mil.
Property, Plant and Equipment(Net PPE) was $12,725 Mil.
Depreciation, Depletion and Amortization(DDA) was $535 Mil.
Selling, General & Admin. Expense(SGA) was $124 Mil.
Total Current Liabilities was $1,134 Mil.
Long-Term Debt was $5,919 Mil.
Net Income was 324.7 + -3451.8 + 429.4 + -1172.7 = $-3,870 Mil.
Non Operating Income was -22.6 + 0 + -3.5 + 2.1 = $-24 Mil.
Cash Flow from Operations was 467.7 + 472.6 + 596 + 556.4 = $2,093 Mil.
|Accounts Receivable was $774 Mil.
Revenue was 1066.7 + 990.6 + 1162.2 + 1130.3 = $4,350 Mil.
Gross Profit was 546.5 + 584.8 + 627.9 + 603.1 = $2,362 Mil.
Total Current Assets was $1,472 Mil.
Total Assets was $19,521 Mil.
Property, Plant and Equipment(Net PPE) was $14,418 Mil.
Depreciation, Depletion and Amortization(DDA) was $456 Mil.
Selling, General & Admin. Expense(SGA) was $147 Mil.
Total Current Liabilities was $953 Mil.
Long-Term Debt was $4,704 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(781.4 / 4598.5)||/||(773.6 / 4349.8)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(553.5 / 4349.8)||/||(645.6 / 4598.5)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (3053.8 + 12725.3) / 16346.2)||/||(1 - (1472.4 + 14418.3) / 19521.2)|
4. SGI = Sales Growth Index
Ratio of sales 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.
5. DEPI = Depreciation Index
Measured as the ratio of the rate of depreciation 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))|
|=||(456.4 / (456.4 + 14418.3))||/||(534.8 / (534.8 + 12725.3))|
6. SGAI = Sales, General and Administrative expenses Index
The ratio of SGA expenses 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)|
|=||(123.9 / 4598.5)||/||(147.1 / 4349.8)|
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$sgai= in leverage
|LVGI||=||((LTD_t + CurrentLiabilities_t) / TotalAssets_t)||/||((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)|
|=||((5919.3 + 1133.6) / 16346.2)||/||((4703.7 + 952.9) / 19521.2)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-3870.4 - -24||-||2092.7)||/||16346.2|
An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.
Ensco PLC has a M-score of -4.66 suggests that the company will not be a manipulator.
Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations
Ensco PLC Annual Data
Ensco PLC Quarterly Data