HAL has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
Halliburton Company has a M-score of -2.87 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Halliburton Company was -0.03. The lowest was -3.22. And the median was -2.38.
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 Halliburton Company 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 * 1.0354||+||0.528 * 1.0922||+||0.404 * 0.9679||+||0.892 * 1.0315||+||0.115 * 0.9532|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.1739||+||4.679 * -0.078||-||0.327 * 1.2584|
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|Accounts Receivable was $6,181 Mil.|
Revenue was 7639 + 7472 + 7317 + 6974 = $29,402 Mil.
Gross Profit was 1238 + 1188 + 1071 + 974 = $4,471 Mil.
Total Current Assets was $13,704 Mil.
Total Assets was $29,223 Mil.
Property, Plant and Equipment(Net PPE) was $11,322 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,900 Mil.
Selling, General & Admin. Expense(SGA) was $333 Mil.
Total Current Liabilities was $5,026 Mil.
Long-Term Debt was $7,816 Mil.
Net Income was 793 + 706 + 644 + -18 = $2,125 Mil.
Non Operating Income was -6 + -12 + -11 + -14 = $-43 Mil.
Cash Flow from Operations was 1898 + 1078 + 1122 + 349 = $4,447 Mil.
|Accounts Receivable was $5,787 Mil.
Revenue was 7290 + 7111 + 7234 + 6868 = $28,503 Mil.
Gross Profit was 1054 + 1021 + 1268 + 1391 = $4,734 Mil.
Total Current Assets was $13,086 Mil.
Total Assets was $27,410 Mil.
Property, Plant and Equipment(Net PPE) was $10,257 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,628 Mil.
Selling, General & Admin. Expense(SGA) was $275 Mil.
Total Current Liabilities was $4,752 Mil.
Long-Term Debt was $4,820 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(6181 / 29402)||/||(5787 / 28503)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(1188 / 28503)||/||(1238 / 29402)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (13704 + 11322) / 29223)||/||(1 - (13086 + 10257) / 27410)|
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.
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))|
|=||(1628 / (1628 + 10257))||/||(1900 / (1900 + 11322))|
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)|
|=||(333 / 29402)||/||(275 / 28503)|
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)|
|=||((7816 + 5026) / 29223)||/||((4820 + 4752) / 27410)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(2125 - -43||-||4447)||/||29223|
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.
Halliburton Company has a M-score of -2.87 suggests that the company will not be a manipulator.
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
Halliburton Company Annual Data
Halliburton Company Quarterly Data