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 -4.67. And the median was -2.55.
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 * 0.8716||+||0.528 * 1||+||0.404 * 0.1661||+||0.892 * 0.9999||+||0.115 * 0.8934|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 0.8394||+||4.679 * -0.2656||-||0.327 * 1.1464|
|This Year (Sep15) TTM:||Last Year (Sep14) TTM:|
|Accounts Receivable was $731 Mil.|
Revenue was 1012.2 + 1059 + 1163.9 + 1159.8 = $4,395 Mil.
Gross Profit was 578.7 + 556.4 + 645.6 + 645.8 = $2,427 Mil.
Total Current Assets was $2,413 Mil.
Total Assets was $16,441 Mil.
Property, Plant and Equipment(Net PPE) was $13,529 Mil.
Depreciation, Depletion and Amortization(DDA) was $563 Mil.
Selling, General & Admin. Expense(SGA) was $117 Mil.
Total Current Liabilities was $803 Mil.
Long-Term Debt was $5,903 Mil.
Net Income was 292 + 260.3 + 324.7 + -3451.8 = $-2,575 Mil.
Non Operating Income was 1.9 + -7.6 + -22.6 + 0 = $-28 Mil.
Cash Flow from Operations was 383.6 + 423.3 + 467.7 + 545.2 = $1,820 Mil.
|Accounts Receivable was $838 Mil.
Revenue was 1201.4 + 1136.6 + 1066.7 + 990.6 = $4,395 Mil.
Gross Profit was 701.2 + 594.1 + 546.5 + 584.8 = $2,427 Mil.
Total Current Assets was $3,030 Mil.
Total Assets was $19,773 Mil.
Property, Plant and Equipment(Net PPE) was $13,128 Mil.
Depreciation, Depletion and Amortization(DDA) was $486 Mil.
Selling, General & Admin. Expense(SGA) was $139 Mil.
Total Current Liabilities was $1,132 Mil.
Long-Term Debt was $5,904 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)|
|=||(730.6 / 4394.9)||/||(838.3 / 4395.3)|
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)|
|=||(556.4 / 4395.3)||/||(578.7 / 4394.9)|
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 - (2412.6 + 13528.9) / 16440.8)||/||(1 - (3030.4 + 13127.6) / 19772.5)|
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))|
|=||(486 / (486 + 13127.6))||/||(563.1 / (563.1 + 13528.9))|
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)|
|=||(116.5 / 4394.9)||/||(138.8 / 4395.3)|
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)|
|=||((5903.3 + 803.1) / 16440.8)||/||((5903.9 + 1131.5) / 19772.5)|
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|
|=||(-2574.8 - -28.3||-||1819.8)||/||16440.8|
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 -4.21 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