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Helmerich & Payne Inc (NYSE:HP)
Beneish M-Score
-3.27 (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.

Helmerich & Payne Inc has a M-score of -3.27 suggests that the company is not a manipulator.

HP' s 10-Year Beneish M-Score Range
Min: -3.94   Max: -2.04
Current: -3.27

-3.94
-2.04

During the past 13 years, the highest Beneish M-Score of Helmerich & Payne Inc was -2.04. The lowest was -3.94. And the median was -2.71.


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 Helmerich & Payne Inc 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 * 0.899+0.528 * 0.9951+0.404 * 0.6016+0.892 * 1.1117+0.115 * 0.9862
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9602+4.679 * -0.0955-0.327 * 1.5745
=-3.27

* 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 $624 Mil.
Revenue was 883.052 + 1056.585 + 985.038 + 952.087 = $3,877 Mil.
Gross Profit was 413.724 + 502.342 + 444.58 + 436.848 = $1,797 Mil.
Total Current Assets was $1,568 Mil.
Total Assets was $7,344 Mil.
Property, Plant and Equipment(Net PPE) was $5,573 Mil.
Depreciation, Depletion and Amortization(DDA) was $567 Mil.
Selling, General & Admin. Expense(SGA) was $136 Mil.
Total Current Liabilities was $391 Mil.
Long-Term Debt was $533 Mil.
Net Income was 149.537 + 203.042 + 168.688 + 192.279 = $714 Mil.
Non Operating Income was 0.055 + 0.314 + -0.605 + 24.228 = $24 Mil.
Cash Flow from Operations was 422.892 + 389.692 + 320.632 + 257.884 = $1,391 Mil.
Accounts Receivable was $624 Mil.
Revenue was 893.43 + 889.152 + 864.536 + 840.197 = $3,487 Mil.
Gross Profit was 413.263 + 415.104 + 391.366 + 389.207 = $1,609 Mil.
Total Current Assets was $1,389 Mil.
Total Assets was $6,488 Mil.
Property, Plant and Equipment(Net PPE) was $4,801 Mil.
Depreciation, Depletion and Amortization(DDA) was $481 Mil.
Selling, General & Admin. Expense(SGA) was $128 Mil.
Total Current Liabilities was $438 Mil.
Long-Term Debt was $80 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)
=(623.706 / 3876.762) / (624.108 / 3487.315)
=0.16088323 / 0.17896519
=0.899

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)
=(502.342 / 3487.315) / (413.724 / 3876.762)
=0.46136928 / 0.46365859
=0.9951

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 - (1568.369 + 5572.818) / 7344.15) / (1 - (1388.984 + 4801.236) / 6488.281)
=0.02763601 / 0.04593836
=0.6016

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
=3876.762 / 3487.315
=1.1117

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))
=(480.791 / (480.791 + 4801.236)) / (566.67 / (566.67 + 5572.818))
=0.09102396 / 0.09229923
=0.9862

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)
=(136.274 / 3876.762) / (127.667 / 3487.315)
=0.0351515 / 0.03660897
=0.9602

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)
=((532.908 + 391.145) / 7344.15) / ((80 + 438.488) / 6488.281)
=0.12582164 / 0.07991146
=1.5745

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
=(713.546 - 23.992 - 1391.1) / 7344.15
=-0.0955

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.

Helmerich & Payne Inc has a M-score of -3.27 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.

Helmerich & Payne Inc Annual Data

Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14
DSRI 0.89791.13910.8961.09630.57331.67770.82811.08740.93181.0335
GMI 0.73590.85950.97661.00961.00111.08780.98050.98260.98130.9857
AQI 0.94320.95640.7760.741.49170.88470.93571.11960.63640.7218
SGI 1.35931.52961.33051.24970.930.991.35661.2391.07481.098
DEPI 0.96731.39331.00890.87211.07920.90930.93960.96620.92110.9687
SGAI 0.80120.82680.68680.96331.11961.38520.82730.94711.09460.9748
LVGI 0.9421.18311.13040.93870.7940.80090.93740.77320.84360.9587
TATA -0.0765-0.0177-0.0846-0.0588-0.1309-0.0722-0.1086-0.0733-0.0675-0.0676
M-score -2.72-2.04-2.77-2.53-3.29-2.22-2.82-2.41-2.92-2.78

Helmerich & Payne Inc Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.96231.00840.92870.93181.0330.98861.05621.03351.02880.899
GMI 1.0060.97690.96170.98130.96140.97070.98870.98570.99090.9951
AQI 0.97271.00860.66730.63640.64970.53120.91130.72180.55450.6016
SGI 1.2171.17021.1091.07481.05161.04661.07361.0981.13261.1117
DEPI 0.94860.9240.88930.92110.9160.94530.98580.96870.99820.9862
SGAI 0.95491.00221.09051.09461.05571.02860.98170.97480.95110.9602
LVGI 0.83050.72830.86190.84360.83120.96180.85850.95870.82231.5745
TATA -0.087-0.074-0.0926-0.0675-0.0569-0.0687-0.0571-0.0676-0.075-0.0955
M-score -2.68-2.60-3.02-2.92-2.80-2.97-2.62-2.78-2.80-3.27
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