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Fluor Corp (NYSE:FLR)
Beneish M-Score
-2.16 (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 -2.16 signals that the company is a manipulator.

FLR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.22   Max: -1.66
Current: -2.16

-3.22
-1.66

During the past 13 years, the highest Beneish M-Score of Fluor Corp was -1.66. The lowest was -3.22. 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 * 1.3707+0.528 * 1.1425+0.404 * 1.6832+0.892 * 0.8692+0.115 * 1.0995
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1275+4.679 * -0.0422-0.327 * 1.1462
=-2.16

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $1,497 Mil.
Revenue was 4423.889 + 4370.681 + 4384.612 + 4810.106 = $17,989 Mil.
Gross Profit was 255.822 + 252.462 + 250.793 + 293.981 = $1,053 Mil.
Total Current Assets was $5,403 Mil.
Total Assets was $9,002 Mil.
Property, Plant and Equipment(Net PPE) was $1,065 Mil.
Depreciation, Depletion and Amortization(DDA) was $189 Mil.
Selling, General & Admin. Expense(SGA) was $182 Mil.
Total Current Liabilities was $3,590 Mil.
Long-Term Debt was $1,572 Mil.
Net Income was 104.323 + -51.357 + 171.283 + 148.507 = $373 Mil.
Non Operating Income was 0 + -239.896 + 68.162 + 0 = $-172 Mil.
Cash Flow from Operations was 114.655 + 278.709 + 366.234 + 164.907 = $925 Mil.
Accounts Receivable was $1,256 Mil.
Revenue was 4548.649 + 5455.196 + 5440.081 + 5251.664 = $20,696 Mil.
Gross Profit was 297.46 + 361.268 + 380.121 + 345.312 = $1,384 Mil.
Total Current Assets was $5,379 Mil.
Total Assets was $7,619 Mil.
Property, Plant and Equipment(Net PPE) was $966 Mil.
Depreciation, Depletion and Amortization(DDA) was $192 Mil.
Selling, General & Admin. Expense(SGA) was $186 Mil.
Total Current Liabilities was $2,820 Mil.
Long-Term Debt was $992 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)
=(1496.829 / 17989.288) / (1256.292 / 20695.59)
=0.08320668 / 0.06070337
=1.3707

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)
=(1384.161 / 20695.59) / (1053.058 / 17989.288)
=0.06688193 / 0.05853806
=1.1425

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 - (5402.869 + 1065.264) / 9001.727) / (1 - (5379.253 + 965.935) / 7619.196)
=0.28145644 / 0.16721029
=1.6832

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
=17989.288 / 20695.59
=0.8692

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))
=(191.905 / (191.905 + 965.935)) / (189.081 / (189.081 + 1065.264))
=0.16574397 / 0.15074082
=1.0995

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)
=(182.332 / 17989.288) / (186.048 / 20695.59)
=0.01013559 / 0.00898974
=1.1275

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)
=((1572.001 + 3589.93) / 9001.727) / ((992.231 + 2819.696) / 7619.196)
=0.57343785 / 0.50030568
=1.1462

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
=(372.756 - -171.734 - 924.505) / 9001.727
=-0.0422

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 -2.16 signals that the company is likely to 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.99440.88280.96930.81821.29580.90570.85381.03371.46740.9717
GMI 0.8380.82220.88730.91571.74920.68841.53120.6430.76821.0752
AQI 0.91130.93220.90511.14230.91671.14020.83751.09331.0931.0773
SGI 1.06971.18561.33760.9850.94811.12141.17940.99180.78720.8413
DEPI 0.9850.97790.92980.94770.99221.00320.98481.03471.07420.9365
SGAI 1.16310.91440.88380.79090.92330.93270.78331.16941.32521.0951
LVGI 1.00090.93330.99720.93391.00571.13181.01180.88071.12480.9758
TATA -0.0067-0.0641-0.0482-0.0279-0.0254-0.0358-0.0208-0.0146-0.0161-0.0347
M-score -2.61-2.81-2.52-2.73-2.00-2.77-2.31-2.66-2.49-2.75

Fluor Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.03370.79151.24831.24891.46741.38161.05381.20990.97171.3707
GMI 0.6430.63890.59250.58770.76820.78160.86760.97971.07521.1425
AQI 1.09331.19561.12181.14051.0930.9431.09811.07491.07731.6832
SGI 0.99180.89740.82750.79650.78720.810.85780.85830.84130.8692
DEPI 1.03471.071.15751.161.07421.04390.98610.96070.93651.0995
SGAI 1.16941.37851.69221.60741.32521.27381.00671.0631.09511.1275
LVGI 0.88070.8730.96740.95631.12481.0981.02011.07430.97581.1462
TATA -0.0146-0.0434-0.0491-0.0038-0.01610.00140.0206-0.0257-0.0347-0.0422
M-score -2.66-3.09-2.89-2.68-2.49-2.50-2.50-2.55-2.75-2.16
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