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Fluor Corp (NYSE:FLR)
Beneish M-Score
-2.50 (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 -2.50 suggests that the company is not a manipulator.

FLR' s 10-Year Beneish M-Score Range
Min: -3.23   Max: -1.66
Current: -2.5

-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 -2.48.


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 * 1.3816+0.528 * 0.7816+0.404 * 0.943+0.892 * 0.81+0.115 * 1.0439
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2738+4.679 * 0.0014-0.327 * 1.098
=-2.50

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 144.079 + 214.543 + 69.502 + 77.79 = $506 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 39.282 + 235.225 + -18.38 + 239.015 = $495 Mil.
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.



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)
=(1256.292 / 20695.59) / (1122.629 / 25550.585)
=0.06070337 / 0.04393751
=1.3816

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)
=(361.268 / 25550.585) / (297.46 / 20695.59)
=0.05227469 / 0.06688193
=0.7816

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 - (5379.253 + 965.935) / 7619.196) / (1 - (5614.751 + 960.064) / 7991.937)
=0.16721029 / 0.17731897
=0.943

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
=20695.59 / 25550.585
=0.81

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))
=(200.874 / (200.874 + 960.064)) / (191.905 / (191.905 + 965.935))
=0.17302733 / 0.16574397
=1.0439

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)
=(186.048 / 20695.59) / (180.319 / 25550.585)
=0.00898974 / 0.00705733
=1.2738

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)
=((992.231 + 2819.696) / 7619.196) / ((496.715 + 3144.763) / 7991.937)
=0.50030568 / 0.45564398
=1.098

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
=(505.914 - 0 - 495.142) / 7619.196
=0.0014

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 -2.50 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 0.79610.99440.88280.96930.81821.29580.90570.85381.03371.4674
GMI 1.35190.8380.82220.88730.91571.74920.68841.53120.6430.7682
AQI 1.06860.91130.93220.90511.14230.91671.14020.83751.09331.093
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 0.99921.00090.93330.99720.93391.00571.13181.01180.88071.1248
TATA -0.0413-0.0076-0.0711-0.0482-0.0307-0.0254-0.0358-0.0208-0.0146-0.0161
M-score -2.23-2.61-2.84-2.52-2.74-2.00-2.77-2.31-2.66-2.49

Fluor Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.85380.96180.96120.9081.03370.79151.24831.24891.46741.3816
GMI 1.53121.40451.34091.2510.6430.63890.59250.58770.76820.7816
AQI 0.83750.87160.961.05131.09331.19561.12181.14051.0930.943
SGI 1.17941.15681.111.04760.99180.89740.82750.79650.78720.81
DEPI 0.98480.99770.970.9441.03471.071.15751.161.07421.0439
SGAI 0.78330.75240.78750.84561.16941.37851.69221.60741.32521.2738
LVGI 1.01181.00670.98670.96810.88070.8730.96740.95631.12481.098
TATA -0.0208-0.022-0.0375-0.0371-0.0146-0.0434-0.0491-0.0038-0.01610.0014
M-score -2.31-2.28-2.39-2.51-2.66-3.09-2.89-2.68-2.49-2.50
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