HES 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.
Hess Corp has a M-score of -2.48 suggests that the company is not a manipulator.
During the past 13 years, the highest Beneish M-Score of Hess Corp was -1.96. The lowest was -3.29. And the median was -2.73.
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 Hess 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 * 0.7476||+||0.528 * 0.844||+||0.404 * 0.8757||+||0.892 * 1.087||+||0.115 * 1.0486|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.0247||+||4.679 * 0.0463||-||0.327 * 0.7749|
|This Year (Dec13) TTM:||Last Year (Dec12) TTM:|
|Accounts Receivable was $3,525 Mil.|
Revenue was 15295 + 2703 + 4105 + 4117 = $26,220 Mil.
Gross Profit was 4253 + 1616 + 2877 + 2587 = $11,333 Mil.
Total Current Assets was $8,599 Mil.
Total Assets was $42,754 Mil.
Property, Plant and Equipment(Net PPE) was $28,771 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,770 Mil.
Selling, General & Admin. Expense(SGA) was $1,576 Mil.
Total Current Liabilities was $6,558 Mil.
Long-Term Debt was $5,420 Mil.
Net Income was 1925 + 420 + 1431 + 1276 = $5,052 Mil.
Non Operating Income was -1794 + -5 + 0 + 0 = $-1,799 Mil.
Cash Flow from Operations was 1550 + 1254 + 1247 + 819 = $4,870 Mil.
|Accounts Receivable was $4,338 Mil.
Revenue was 14722 + 3118 + 3321 + 2961 = $24,122 Mil.
Gross Profit was 3131 + 1788 + 2116 + 1765 = $8,800 Mil.
Total Current Assets was $8,387 Mil.
Total Assets was $43,441 Mil.
Property, Plant and Equipment(Net PPE) was $28,807 Mil.
Depreciation, Depletion and Amortization(DDA) was $2,922 Mil.
Selling, General & Admin. Expense(SGA) was $1,415 Mil.
Total Current Liabilities was $8,382 Mil.
Long-Term Debt was $7,324 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)|
|=||(3525 / 26220)||/||(4338 / 24122)|
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)|
|=||(1616 / 24122)||/||(4253 / 26220)|
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 - (8599 + 28771) / 42754)||/||(1 - (8387 + 28807) / 43441)|
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))|
|=||(2922 / (2922 + 28807))||/||(2770 / (2770 + 28771))|
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)|
|=||(1576 / 26220)||/||(1415 / 24122)|
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)|
|=||((5420 + 6558) / 42754)||/||((7324 + 8382) / 43441)|
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|
|=||(5052 - -1799||-||4870)||/||42754|
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.
Hess Corp has a M-score of -2.48 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
Hess Corp Annual Data
Hess Corp Quarterly Data