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Fluor Corp (NYSE:FLR)
Beneish M-Score
-1.91 (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 -1.91 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: -1.91

-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 * 1.4575+0.528 * 1.4545+0.404 * 1.4349+0.892 * 0.9593+0.115 * 0.9886
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0542+4.679 * -0.0356-0.327 * 1.1494
=-1.91

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,670 Mil.
Revenue was 4766.864 + 4856.117 + 4423.889 + 4370.681 = $18,418 Mil.
Gross Profit was 37.227 + 248.249 + 255.822 + 252.462 = $794 Mil.
Total Current Assets was $5,742 Mil.
Total Assets was $9,317 Mil.
Property, Plant and Equipment(Net PPE) was $1,042 Mil.
Depreciation, Depletion and Amortization(DDA) was $216 Mil.
Selling, General & Admin. Expense(SGA) was $179 Mil.
Total Current Liabilities was $3,876 Mil.
Long-Term Debt was $1,556 Mil.
Net Income was 4.804 + 101.813 + 104.323 + -51.357 = $160 Mil.
Non Operating Income was 0 + 0 + 0 + -239.896 = $-240 Mil.
Cash Flow from Operations was 361.94 + -24.111 + 114.655 + 278.709 = $731 Mil.
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.



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)
=(1670.172 / 18417.551) / (1194.505 / 19198.563)
=0.09068372 / 0.06221846
=1.4575

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)
=(1203.502 / 19198.563) / (793.76 / 18417.551)
=0.06268709 / 0.04309802
=1.4545

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 - (5741.578 + 1042.354) / 9316.606) / (1 - (5229.758 + 929.888) / 7599.361)
=0.27184513 / 0.18945211
=1.4349

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
=18417.551 / 19198.563
=0.9593

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))
=(189.729 / (189.729 + 929.888)) / (215.648 / (215.648 + 1042.354))
=0.16945884 / 0.17142103
=0.9886

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)
=(179.166 / 18417.551) / (177.156 / 19198.563)
=0.009728 / 0.00922757
=1.0542

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)
=((1555.522 + 3876.197) / 9316.606) / ((992.689 + 2861.801) / 7599.361)
=0.58301478 / 0.50721238
=1.1494

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
=(159.583 - -239.896 - 731.193) / 9316.606
=-0.0356

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 -1.91 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 local exchange's 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 0.91130.93220.90511.14230.91671.14020.83751.09331.0931.2012
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 1.00090.93330.99720.93391.00571.13181.01180.88071.12480.975
TATA -0.0067-0.0641-0.0482-0.0307-0.0254-0.0358-0.0178-0.0146-0.0161-0.0347
M-score -2.61-2.81-2.52-2.74-2.00-2.77-2.29-2.66-2.49-2.70

Fluor Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.24831.24891.46741.38161.05381.20990.97171.37071.48711.4575
GMI 0.59250.58770.76820.78160.86760.97971.07521.14251.17821.4545
AQI 1.12181.14051.0930.9431.09811.07491.20121.68321.48811.4349
SGI 0.82750.79650.78720.810.85780.85830.84130.86920.89050.9593
DEPI 1.15751.161.07421.04390.98610.96070.93651.09951.03080.9886
SGAI 1.69221.60741.32521.27381.00671.0631.09511.12751.18681.0542
LVGI 0.96740.95631.12481.0981.02011.07430.9751.14621.16691.1494
TATA -0.0491-0.0038-0.01610.00140.0206-0.0257-0.0347-0.0422-0.0257-0.0356
M-score -2.89-2.68-2.49-2.50-2.50-2.55-2.70-2.16-2.04-1.91
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