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Fluor Corp (NYSE:FLR)
Beneish M-Score
-3.09 (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 -3.09 suggests that the company is not a manipulator.

FLR' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -1.66
Current: -3.09

-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 -2.40.


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 * 0.7915+0.528 * 0.6389+0.404 * 1.1956+0.892 * 0.8974+0.115 * 1.07
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3785+4.679 * -0.0434-0.327 * 0.873
=-3.09

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,123 Mil.
Revenue was 5384.636 + 6291.405 + 6684.216 + 7190.328 = $25,551 Mil.
Gross Profit was 312.332 + 335.93 + 354.531 + 332.856 = $1,336 Mil.
Total Current Assets was $5,615 Mil.
Total Assets was $7,992 Mil.
Property, Plant and Equipment(Net PPE) was $960 Mil.
Depreciation, Depletion and Amortization(DDA) was $201 Mil.
Selling, General & Admin. Expense(SGA) was $180 Mil.
Total Current Liabilities was $3,145 Mil.
Long-Term Debt was $497 Mil.
Net Income was 149.074 + 166.795 + 173.046 + 161.412 = $650 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 186.714 + 76.256 + 477.118 + 257.256 = $997 Mil.
Accounts Receivable was $1,581 Mil.
Revenue was 7185.624 + 7022.722 + 7136.056 + 7128.249 = $28,473 Mil.
Gross Profit was 341.874 + -15.642 + 306.275 + 318.466 = $951 Mil.
Total Current Assets was $6,261 Mil.
Total Assets was $8,463 Mil.
Property, Plant and Equipment(Net PPE) was $947 Mil.
Depreciation, Depletion and Amortization(DDA) was $215 Mil.
Selling, General & Admin. Expense(SGA) was $146 Mil.
Total Current Liabilities was $3,921 Mil.
Long-Term Debt was $496 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)
=(1122.629 / 25550.585) / (1580.539 / 28472.651)
=0.04393751 / 0.05551078
=0.7915

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)
=(335.93 / 28472.651) / (312.332 / 25550.585)
=0.03339952 / 0.05227469
=0.6389

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 - (5614.751 + 960.064) / 7991.937) / (1 - (6260.805 + 947.058) / 8463.034)
=0.17731897 / 0.14831218
=1.1956

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
=25550.585 / 28472.651
=0.8974

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))
=(215.164 / (215.164 + 947.058)) / (200.874 / (200.874 + 960.064))
=0.18513158 / 0.17302733
=1.07

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)
=(180.319 / 25550.585) / (145.77 / 28472.651)
=0.00705733 / 0.00511965
=1.3785

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)
=((496.715 + 3144.763) / 7991.937) / ((496.274 + 3920.737) / 8463.034)
=0.45564398 / 0.52191814
=0.873

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
=(650.327 - 0 - 997.344) / 7991.937
=-0.0434

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 -3.09 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.12320.79610.99440.88280.96930.81821.29580.90570.85381.0337
GMI 1.03021.35190.8380.82220.88730.91571.74910.68841.53120.643
AQI 0.93691.06860.91130.93220.90511.14230.91671.14020.83751.0933
SGI 1.06531.40311.06971.18561.33760.9850.94811.12141.17940.9918
DEPI 0.73821.09480.9850.97790.92980.94770.99221.00320.98481.0347
SGAI 0.94490.71941.16310.91440.88380.79090.92340.93260.78331.1694
LVGI 0.97930.99921.00090.93330.99720.93391.00571.13181.01180.8807
TATA 0.0679-0.0413-0.0076-0.0711-0.0482-0.0307-0.0254-0.0358-0.0208-0.0146
M-score -2.01-2.23-2.61-2.84-2.52-2.74-2.00-2.76-2.31-2.66

Fluor Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.90570.9920.76080.75560.85380.96180.96120.9081.03370.7915
GMI 0.68840.72620.74390.92781.53121.40451.34091.2510.6430.6389
AQI 1.14021.04081.01680.9530.83750.87160.961.05131.09331.1956
SGI 1.12141.17271.17551.19691.17941.15681.111.04760.99180.8974
DEPI 1.00320.98760.97831.04420.98480.99770.970.9441.03471.07
SGAI 0.93270.89710.87750.89310.78330.75240.78750.84561.16941.3785
LVGI 1.13181.10211.09320.96921.01181.00670.98670.96810.88070.873
TATA -0.03580.0160.0073-0.0086-0.0208-0.022-0.0375-0.0383-0.0146-0.0434
M-score -2.77-2.40-2.65-2.59-2.31-2.28-2.39-2.52-2.66-3.09
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