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Fluor Corp (NYSE:FLR)
Beneish M-Score
-2.55 (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.

Fluor Corp has a M-score of -2.55 suggests that the company is not a manipulator.

FLR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.23   Max: -1.66
Current: -2.55

-3.23
-1.66

During the past 13 years, the highest Beneish M-Score of Fluor Corp was -1.66. The lowest was -3.23. And the median was -2.50.


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 Fluor Corp 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 * 1.2099+0.528 * 0.9797+0.404 * 1.0749+0.892 * 0.8583+0.115 * 0.9607
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.063+4.679 * -0.0257-0.327 * 1.0743
=-2.55

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,195 Mil.
Revenue was 4384.612 + 4810.106 + 4548.649 + 5455.196 = $19,199 Mil.
Gross Profit was 250.793 + 293.981 + 297.46 + 361.268 = $1,204 Mil.
Total Current Assets was $5,230 Mil.
Total Assets was $7,599 Mil.
Property, Plant and Equipment(Net PPE) was $930 Mil.
Depreciation, Depletion and Amortization(DDA) was $190 Mil.
Selling, General & Admin. Expense(SGA) was $177 Mil.
Total Current Liabilities was $2,862 Mil.
Long-Term Debt was $993 Mil.
Net Income was 171.283 + 148.507 + 144.079 + 214.543 = $678 Mil.
Non Operating Income was 68.162 + 0 + 0 + 0 = $68 Mil.
Cash Flow from Operations was 366.234 + 164.907 + 39.282 + 235.225 = $806 Mil.
Accounts Receivable was $1,150 Mil.
Revenue was 5440.081 + 5251.664 + 5384.636 + 6291.405 = $22,368 Mil.
Gross Profit was 380.121 + 345.312 + 312.332 + 335.93 = $1,374 Mil.
Total Current Assets was $5,659 Mil.
Total Assets was $8,049 Mil.
Property, Plant and Equipment(Net PPE) was $971 Mil.
Depreciation, Depletion and Amortization(DDA) was $189 Mil.
Selling, General & Admin. Expense(SGA) was $194 Mil.
Total Current Liabilities was $3,303 Mil.
Long-Term Debt was $497 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)
=(1194.505 / 19198.563) / (1150.276 / 22367.786)
=0.06221846 / 0.05142556
=1.2099

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)
=(293.981 / 22367.786) / (250.793 / 19198.563)
=0.06141399 / 0.06268709
=0.9797

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 - (5229.758 + 929.888) / 7599.361) / (1 - (5659.48 + 970.605) / 8048.705)
=0.18945211 / 0.17625444
=1.0749

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
=19198.563 / 22367.786
=0.8583

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))
=(188.752 / (188.752 + 970.605)) / (189.729 / (189.729 + 929.888))
=0.16280749 / 0.16945884
=0.9607

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)
=(177.156 / 19198.563) / (194.173 / 22367.786)
=0.00922757 / 0.00868092
=1.063

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)
=((992.689 + 2861.801) / 7599.361) / ((496.935 + 3303.277) / 8048.705)
=0.50721238 / 0.47215198
=1.0743

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
=(678.412 - 68.162 - 805.648) / 7599.361
=-0.0257

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.

Fluor Corp has a M-score of -2.55 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 own currency.

Fluor Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.79610.99440.88280.96930.81821.29580.90570.85381.03371.4674
GMI 1.35190.8380.82220.88730.91571.74920.68841.53120.6430.7682
AQI 1.06860.91130.93220.90511.14230.91671.14020.83751.09331.093
SGI 1.40311.06971.18561.33760.9850.94811.12141.17940.99180.7872
DEPI 1.09480.9850.97790.92980.94770.99221.00320.98481.03471.0742
SGAI 0.71941.16310.91440.88380.79090.92330.93270.78331.16941.3252
LVGI 0.99921.00090.93330.99720.93391.00571.13181.01180.88071.1248
TATA -0.0413-0.0076-0.0711-0.0482-0.0307-0.0254-0.0358-0.0208-0.0146-0.0161
M-score -2.23-2.61-2.84-2.52-2.74-2.00-2.77-2.31-2.66-2.49

Fluor Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.96120.9081.03370.79151.24831.24891.46741.38161.05381.2099
GMI 1.34091.2510.6430.63890.59250.58770.76820.78160.86760.9797
AQI 0.961.05131.09331.19561.12181.14051.0930.9431.09811.0749
SGI 1.111.04760.99180.89740.82750.79650.78720.810.85780.8583
DEPI 0.970.9441.03471.071.15751.161.07421.04390.98610.9607
SGAI 0.78750.84561.16941.37851.69221.60741.32521.27381.00671.063
LVGI 0.98670.96810.88070.8730.96740.95631.12481.0981.02011.0743
TATA -0.0375-0.0371-0.0146-0.0434-0.0491-0.0038-0.01610.00140.0206-0.0257
M-score -2.39-2.51-2.66-3.09-2.89-2.68-2.49-2.50-2.50-2.55
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