Switch to:
Fluor Corporation (NYSE:FLR)
Beneish M-Score
-2.66 (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 Corporation has a M-score of -2.66 suggests that the company is not a manipulator.

FLR' s 10-Year Beneish M-Score Range
Min: -2.84   Max: -1.66
Current: -2.66

-2.84
-1.66

During the past 13 years, the highest Beneish M-Score of Fluor Corporation was -1.66. The lowest was -2.84. 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 Corporation 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 * 1.0337+0.528 * 0.643+0.404 * 1.0933+0.892 * 0.9918+0.115 * 1.0347
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1694+4.679 * -0.0146-0.327 * 0.8807
=-2.66

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
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.
Net Income was 166.795 + 173.046 + 161.412 + 166.458 = $668 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 76.256 + 470.321 + 264.053 + -21.724 = $789 Mil.
Accounts Receivable was $1,243 Mil.
Revenue was 7022.722 + 7136.056 + 7128.249 + 6290.108 = $27,577 Mil.
Gross Profit was -15.642 + 306.275 + 318.466 + 275.898 = $885 Mil.
Total Current Assets was $6,094 Mil.
Total Assets was $8,276 Mil.
Property, Plant and Equipment(Net PPE) was $951 Mil.
Depreciation, Depletion and Amortization(DDA) was $212 Mil.
Selling, General & Admin. Expense(SGA) was $151 Mil.
Total Current Liabilities was $3,887 Mil.
Long-Term Debt was $520 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)
=(1274.024 / 27351.573) / (1242.691 / 27577.135)
=0.04657955 / 0.04506237
=1.0337

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)
=(354.531 / 27577.135) / (335.93 / 27351.573)
=0.03209169 / 0.04991271
=0.643

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 - (6003.683 + 966.953) / 8323.85) / (1 - (6094.137 + 951.255) / 8276.043)
=0.16257069 / 0.14870041
=1.0933

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
=27351.573 / 27577.135
=0.9918

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))
=(212.381 / (212.381 + 951.255)) / (207.098 / (207.098 + 966.953))
=0.18251498 / 0.17639609
=1.0347

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)
=(175.148 / 27351.573) / (151.01 / 27577.135)
=0.00640358 / 0.00547591
=1.1694

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)
=((496.604 + 3407.16) / 8323.85) / ((520.205 + 3887.114) / 8276.043)
=0.46898539 / 0.5325394
=0.8807

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
=(667.711 - 0 - 788.906) / 8323.85
=-0.0146

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 Corporation has a M-score of -2.66 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 Corporation 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 Corporation Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.15730.90570.9920.76080.75560.85380.96180.96120.9081.0337
GMI 1.05250.68840.72620.74390.92781.53121.40451.34091.2510.643
AQI 0.94641.14021.04081.01680.9530.83750.87160.961.05131.0933
SGI 1.06341.12141.17271.17551.19691.17941.15681.111.04760.9918
DEPI 0.94691.00320.98760.97831.04420.98480.99770.970.9441.0347
SGAI 0.94270.93270.89710.87750.89310.78330.75240.78750.84561.1694
LVGI 1.11941.13181.10211.09320.96921.01181.00670.98670.96810.8807
TATA -0.0603-0.03580.0160.0073-0.0086-0.0208-0.022-0.0384-0.0383-0.0146
M-score -2.59-2.77-2.40-2.65-2.59-2.31-2.28-2.40-2.52-2.66
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK
Hide