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Helmerich & Payne Inc (NYSE:HP)
Beneish M-Score
-2.80 (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 -2.80 suggests that the company is not a manipulator.

HP' s 10-Year Beneish M-Score Range
Min: -3.94   Max: -2.04
Current: -2.8

-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 -2.70.


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 * 1.0288+0.528 * 0.9909+0.404 * 0.5545+0.892 * 1.1326+0.115 * 0.9982
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9511+4.679 * -0.075-0.327 * 0.8223
=-2.80

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $734 Mil.
Revenue was 1056.585 + 985.038 + 952.087 + 893.43 = $3,887 Mil.
Gross Profit was 502.342 + 444.58 + 436.848 + 413.263 = $1,797 Mil.
Total Current Assets was $1,210 Mil.
Total Assets was $6,802 Mil.
Property, Plant and Equipment(Net PPE) was $5,400 Mil.
Depreciation, Depletion and Amortization(DDA) was $541 Mil.
Selling, General & Admin. Expense(SGA) was $136 Mil.
Total Current Liabilities was $447 Mil.
Long-Term Debt was $40 Mil.
Net Income was 203.042 + 168.688 + 192.279 + 174.57 = $739 Mil.
Non Operating Income was 0.314 + -0.605 + 24.228 + 21.32 = $45 Mil.
Cash Flow from Operations was 389.692 + 320.632 + 257.884 + 235.153 = $1,203 Mil.
Accounts Receivable was $630 Mil.
Revenue was 889.152 + 864.536 + 840.197 + 838.309 = $3,432 Mil.
Gross Profit was 415.104 + 391.366 + 389.207 + 376.572 = $1,572 Mil.
Total Current Assets was $1,391 Mil.
Total Assets was $6,411 Mil.
Property, Plant and Equipment(Net PPE) was $4,694 Mil.
Depreciation, Depletion and Amortization(DDA) was $469 Mil.
Selling, General & Admin. Expense(SGA) was $126 Mil.
Total Current Liabilities was $479 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)
=(734.329 / 3887.14) / (630.24 / 3432.194)
=0.18891241 / 0.18362598
=1.0288

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)
=(444.58 / 3432.194) / (502.342 / 3887.14)
=0.45808862 / 0.4623021
=0.9909

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 - (1209.992 + 5400.016) / 6801.519) / (1 - (1391.29 + 4693.77) / 6410.587)
=0.02815709 / 0.05077959
=0.5545

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
=3887.14 / 3432.194
=1.1326

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))
=(469.261 / (469.261 + 4693.77)) / (540.925 / (540.925 + 5400.016))
=0.09088867 / 0.09105039
=0.9982

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)
=(135.803 / 3887.14) / (126.072 / 3432.194)
=0.03493648 / 0.03673219
=0.9511

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)
=((40 + 447.456) / 6801.519) / ((80 + 478.737) / 6410.587)
=0.0716687 / 0.08715848
=0.8223

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
=(738.579 - 45.257 - 1203.361) / 6801.519
=-0.075

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 -2.80 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 0.89791.13910.8961.09630.55831.72280.82811.08740.93181.0335
GMI 0.73590.85950.97661.00960.95661.13830.98050.98260.98130.9857
AQI 0.94320.95640.7760.741.77880.74190.93571.11960.63640.7218
SGI 1.35931.52961.33051.24970.90531.0171.35661.2391.07481.098
DEPI 0.96731.39331.00890.87211.09560.89560.93960.96620.92110.9687
SGAI 0.80120.82680.68680.96331.13871.3620.82730.94711.09460.9748
LVGI 0.9421.18311.13040.93870.7940.80090.93740.77320.84360.9587
TATA -0.0765-0.0177-0.0846-0.0588-0.1304-0.0722-0.1086-0.0733-0.0675-0.0676
M-score -2.72-2.04-2.77-2.53-3.23-2.18-2.82-2.41-2.92-2.78

Helmerich & Payne Inc Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.08740.96231.00840.92870.93181.0330.98861.05621.03351.0288
GMI 0.98261.0060.97690.96170.98130.96140.97070.98870.98570.9909
AQI 1.11960.97271.00860.66730.63640.64970.53120.91130.72180.5545
SGI 1.2391.2171.17021.1091.07481.05161.04661.07361.0981.1326
DEPI 0.96620.94860.9240.88930.92110.9160.94530.98580.96870.9982
SGAI 0.94710.95491.00221.09051.09461.05571.02860.98170.97480.9511
LVGI 0.77320.83050.72830.86190.84360.83120.96180.85850.95870.8223
TATA -0.0733-0.087-0.074-0.0926-0.0675-0.0569-0.0687-0.0571-0.0676-0.075
M-score -2.41-2.68-2.60-3.02-2.92-2.80-2.97-2.62-2.78-2.80
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