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Fluor Corp (NYSE:FLR)
Beneish M-Score
-2.49 (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 -2.49 suggests that the company is not a manipulator.

FLR' s 10-Year Beneish M-Score Range
Min: -2.84   Max: -1.66
Current: -2.49

-2.84
-1.66

During the past 13 years, the highest Beneish M-Score of Fluor Corp was -1.66. The lowest was -2.84. And the median was -2.48.


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 * 1.4674+0.528 * 0.7682+0.404 * 1.093+0.892 * 0.7872+0.115 * 1.0742
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3252+4.679 * -0.0161-0.327 * 1.1248
=-2.49

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $1,472 Mil.
Revenue was 5455.196 + 5440.081 + 5251.664 + 5384.636 = $21,532 Mil.
Gross Profit was 361.268 + 380.121 + 345.312 + 312.332 = $1,399 Mil.
Total Current Assets was $5,758 Mil.
Total Assets was $8,194 Mil.
Property, Plant and Equipment(Net PPE) was $980 Mil.
Depreciation, Depletion and Amortization(DDA) was $193 Mil.
Selling, General & Admin. Expense(SGA) was $183 Mil.
Total Current Liabilities was $3,331 Mil.
Long-Term Debt was $992 Mil.
Net Income was 214.543 + 69.502 + 77.79 + 149.074 = $511 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 235.225 + -18.38 + 239.015 + 186.714 = $643 Mil.
Accounts Receivable was $1,274 Mil.
Revenue was 6291.405 + 6684.216 + 7190.328 + 7185.624 = $27,352 Mil.
Gross Profit was 335.93 + 354.531 + 332.856 + 341.874 = $1,365 Mil.
Total Current Assets was $6,004 Mil.
Total Assets was $8,324 Mil.
Property, Plant and Equipment(Net PPE) was $967 Mil.
Depreciation, Depletion and Amortization(DDA) was $207 Mil.
Selling, General & Admin. Expense(SGA) was $175 Mil.
Total Current Liabilities was $3,407 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)
=(1471.705 / 21531.577) / (1274.024 / 27351.573)
=0.06835101 / 0.04657955
=1.4674

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)
=(380.121 / 27351.573) / (361.268 / 21531.577)
=0.04991271 / 0.06497587
=0.7682

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 - (5758.047 + 980.263) / 8194.429) / (1 - (6003.683 + 966.953) / 8323.85)
=0.17769621 / 0.16257069
=1.093

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
=21531.577 / 27351.573
=0.7872

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))
=(207.098 / (207.098 + 966.953)) / (192.594 / (192.594 + 980.263))
=0.17639609 / 0.16420928
=1.0742

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)
=(182.711 / 21531.577) / (175.148 / 27351.573)
=0.00848572 / 0.00640358
=1.3252

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)
=((991.685 + 3330.853) / 8194.429) / ((496.604 + 3407.16) / 8323.85)
=0.52749716 / 0.46898539
=1.1248

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
=(510.909 - 0 - 642.574) / 8194.429
=-0.0161

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 -2.49 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 0.79610.99440.88280.96930.81821.29580.90710.85251.03371.4674
GMI 1.35190.8380.82220.88730.91571.74920.68841.53120.6430.7682
AQI 1.06860.91130.93220.90511.14230.91671.140.83771.09331.093
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 0.99921.00090.93330.99720.93391.00571.1321.01160.88071.1248
TATA -0.0413-0.0076-0.0711-0.0482-0.0299-0.0254-0.0358-0.0208-0.0146-0.0161
M-score -2.23-2.61-2.84-2.52-2.74-2.00-2.76-2.31-2.66-2.49

Fluor Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.75560.85250.96180.96120.9081.03370.79151.24831.24891.4674
GMI 0.92781.53121.40451.34091.2510.6430.63890.59250.58770.7682
AQI 0.9530.83770.87160.961.05131.09331.19561.12181.14051.093
SGI 1.19691.17941.15681.111.04760.99180.89740.82750.79650.7872
DEPI 1.04420.98480.99770.970.9441.03471.071.15751.161.0742
SGAI 0.89310.78330.75240.78750.84561.16941.37851.69221.60741.3252
LVGI 0.96921.01161.00670.98670.96810.88070.8730.96740.95631.1248
TATA -0.0086-0.0208-0.022-0.0384-0.0383-0.0146-0.0434-0.0483-0.0025-0.0161
M-score -2.59-2.31-2.28-2.40-2.52-2.66-3.09-2.89-2.68-2.49
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