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Ensco PLC (NYSE:ESV)
Beneish M-Score
-4.42 (As of Today)

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.

Ensco PLC has a M-score of -4.42 suggests that the company is not a manipulator.

ESV' s Beneish M-Score Range Over the Past 10 Years
Min: -4.71   Max: 0.01
Current: -4.42

-4.71
0.01

During the past 13 years, the highest Beneish M-Score of Ensco PLC was 0.01. The lowest was -4.71. And the median was -2.57.


Definition

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 * 0.6605+0.528 * 1.0286+0.404 * 0.4282+0.892 * 0.7372+0.115 * 0.9475
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2378+4.679 * -0.2445-0.327 * 0.9493
=-4.42

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $356 Mil.
Revenue was 548.2 + 909.6 + 814 + 828.3 = $3,100 Mil.
Gross Profit was 250.1 + 559.4 + 450.3 + 413.1 = $1,673 Mil.
Total Current Assets was $2,466 Mil.
Total Assets was $13,602 Mil.
Property, Plant and Equipment(Net PPE) was $10,960 Mil.
Depreciation, Depletion and Amortization(DDA) was $465 Mil.
Selling, General & Admin. Expense(SGA) was $106 Mil.
Total Current Liabilities was $590 Mil.
Long-Term Debt was $4,677 Mil.
Net Income was 85.3 + 590.6 + 175.3 + -2471.8 = $-1,621 Mil.
Non Operating Income was 18.7 + 261.4 + -1.8 + 7 = $285 Mil.
Cash Flow from Operations was 194.4 + 562.9 + 238.7 + 423.3 = $1,419 Mil.
Accounts Receivable was $731 Mil.
Revenue was 1012.2 + 1059 + 1163.9 + 970.4 = $4,206 Mil.
Gross Profit was 578.7 + 556.4 + 645.6 + 553.5 = $2,334 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 $542 Mil.
Selling, General & Admin. Expense(SGA) was $117 Mil.
Total Current Liabilities was $803 Mil.
Long-Term Debt was $5,903 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(355.7 / 3100.1) / (730.6 / 4205.5)
=0.11473823 / 0.17372488
=0.6605

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)
=(2334.2 / 4205.5) / (1672.9 / 3100.1)
=0.55503507 / 0.53962775
=1.0286

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (2465.7 + 10959.7) / 13602.3) / (1 - (2412.6 + 13528.9) / 16440.8)
=0.01300515 / 0.03036957
=0.4282

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.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=3100.1 / 4205.5
=0.7372

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))
=(542.1 / (542.1 + 13528.9)) / (464.5 / (464.5 + 10959.7))
=0.03852605 / 0.0406593
=0.9475

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)
=(106.3 / 3100.1) / (116.5 / 4205.5)
=0.03428922 / 0.02770182
=1.2378

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)
=((4677 + 590.2) / 13602.3) / ((5903.3 + 803.1) / 16440.8)
=0.38722863 / 0.40791202
=0.9493

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
=(-1620.6 - 285.3 - 1419.3) / 13602.3
=-0.2445

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 -4.42 suggests that the company will not be a manipulator.


Related Terms

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


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Ensco PLC Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.73610.95841.09910.82720.75822.19710.66370.95861.07490.7706
GMI 0.82351.00330.98951.09351.14591.13420.91321.03280.93891.0094
AQI 0.85891.08390.98930.95580.87592.65580.93570.93560.19740.5269
SGI 1.71111.18011.1460.8130.8721.67531.51291.1440.92780.8902
DEPI 0.9791.06461.01191.06331.07691.58970.75690.98240.97510.8282
SGAI 0.81451.13040.7891.46331.54281.09950.62060.86180.96841.0083
LVGI 0.818910.75290.91320.75964.15340.89850.94981.46991.1238
TATA -0.0468-0.0580.0014-0.0691-0.0424-0.0086-0.0549-0.031-0.3712-0.2399
M-score -2.37-2.61-2.14-3.14-2.99-1.06-2.59-2.51-4.72-4.16

Ensco PLC Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.85811.05941.06161.08880.92671.01690.78020.88510.74820.6605
GMI 1.03270.98710.94860.91130.9110.94710.99911.03280.99351.0286
AQI 1.02410.96440.19740.18650.16330.16610.52690.40260.42540.4282
SGI 1.06771.03460.93940.92770.90690.85710.87920.80750.80010.7372
DEPI 0.9310.93470.97511.06861.12851.0760.82820.80980.84180.9475
SGAI 0.92090.91520.95650.90790.88120.97931.0211.11641.16471.2378
LVGI 1.05661.19831.46991.4891.32581.14641.12381.10660.95730.9493
TATA -0.1295-0.1125-0.3712-0.3643-0.2671-0.2612-0.2399-0.236-0.2391-0.2445
M-score -3.14-3.00-4.71-4.68-4.34-4.21-4.17-4.16-4.28-4.42
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