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Fluor Corp (NYSE:FLR)
Beneish M-Score
-2.68 (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 -2.68 suggests that the company is not a manipulator.

FLR' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -1.66
Current: -2.68

-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 -2.46.


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 * 1.2489+0.528 * 0.5877+0.404 * 1.1405+0.892 * 0.7965+0.115 * 1.16
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6074+4.679 * -0.0038-0.327 * 0.9563
=-2.68

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 69.502 + 77.79 + 149.074 + 166.795 = $463 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was -18.38 + 239.015 + 186.714 + 86.363 = $494 Mil.
Accounts Receivable was $1,156 Mil.
Revenue was 6684.216 + 7190.328 + 7185.624 + 7022.722 = $28,083 Mil.
Gross Profit was 354.531 + 332.856 + 341.874 + -15.642 = $1,014 Mil.
Total Current Assets was $6,441 Mil.
Total Assets was $8,727 Mil.
Property, Plant and Equipment(Net PPE) was $937 Mil.
Depreciation, Depletion and Amortization(DDA) was $218 Mil.
Selling, General & Admin. Expense(SGA) was $152 Mil.
Total Current Liabilities was $3,812 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)
=(1150.276 / 22367.786) / (1156.387 / 28082.89)
=0.05142556 / 0.04117764
=1.2489

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)
=(345.312 / 28082.89) / (380.121 / 22367.786)
=0.03609383 / 0.06141399
=0.5877

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 - (5659.48 + 970.605) / 8048.705) / (1 - (6441.354 + 937.066) / 8727.168)
=0.17625444 / 0.1545459
=1.1405

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
=22367.786 / 28082.89
=0.7965

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))
=(218.185 / (218.185 + 937.066)) / (188.752 / (188.752 + 970.605))
=0.18886372 / 0.16280749
=1.16

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)
=(194.173 / 22367.786) / (151.668 / 28082.89)
=0.00868092 / 0.00540073
=1.6074

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)
=((496.935 + 3303.277) / 8048.705) / ((496.494 + 3812.181) / 8727.168)
=0.47215198 / 0.49370827
=0.9563

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
=(463.161 - 0 - 493.712) / 8048.705
=-0.0038

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 -2.68 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 1.03021.35190.8380.82220.88730.91571.74920.68841.53120.643
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 0.94490.71941.16310.91440.88380.79090.92330.93270.78331.1694
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 -2.01-2.23-2.61-2.84-2.52-2.74-2.00-2.77-2.31-2.66

Fluor Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.76080.75560.85380.96180.96120.9081.03370.79151.24831.2489
GMI 0.74390.92781.53121.40451.34091.2510.6430.63890.59250.5877
AQI 1.01680.9530.83750.87160.961.05131.09331.19561.12181.1405
SGI 1.17551.19691.17941.15681.111.04760.99180.89740.82750.7965
DEPI 0.97831.04420.98480.99770.970.9441.03471.071.15751.16
SGAI 0.87750.89310.78330.75240.78750.84561.16941.37851.69221.6074
LVGI 1.09320.96921.01181.00670.98670.96810.88070.8730.96740.9563
TATA 0.0073-0.0086-0.0208-0.022-0.0375-0.0371-0.0146-0.0434-0.0491-0.0038
M-score -2.65-2.59-2.31-2.28-2.39-2.51-2.66-3.09-2.89-2.68
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