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Helmerich & Payne Inc (NYSE:HP)
Beneish M-Score
-3.48 (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 -3.48 suggests that the company is not a manipulator.

HP' s Beneish M-Score Range Over the Past 10 Years
Min: -4.2   Max: -2.01
Current: -3.48

-4.2
-2.01

During the past 13 years, the highest Beneish M-Score of Helmerich & Payne Inc was -2.01. The lowest was -4.20. 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 * 1.3918+0.528 * 1.0285+0.404 * 0.6831+0.892 * 0.5149+0.115 * 0.9306
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.2244+4.679 * -0.1279-0.327 * 0.9808
=-3.48

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $351 Mil.
Revenue was 366.486 + 438.191 + 487.847 + 557.539 = $1,850 Mil.
Gross Profit was 180.34 + 216.58 + 211.203 + 230.578 = $839 Mil.
Total Current Assets was $1,538 Mil.
Total Assets was $6,977 Mil.
Property, Plant and Equipment(Net PPE) was $5,306 Mil.
Depreciation, Depletion and Amortization(DDA) was $596 Mil.
Selling, General & Admin. Expense(SGA) was $150 Mil.
Total Current Liabilities was $327 Mil.
Long-Term Debt was $493 Mil.
Net Income was -21.2 + 21.205 + 16.002 + -25.798 = $-10 Mil.
Non Operating Income was 0.534 + 0.653 + -0.261 + -0.989 = $-0 Mil.
Cash Flow from Operations was 122.893 + 184.321 + 308.196 + 267.188 = $883 Mil.
Accounts Receivable was $490 Mil.
Revenue was 661.445 + 885.67 + 1060.787 + 985.038 = $3,593 Mil.
Gross Profit was 310.805 + 418.571 + 501.324 + 444.58 = $1,675 Mil.
Total Current Assets was $1,502 Mil.
Total Assets was $7,336 Mil.
Property, Plant and Equipment(Net PPE) was $5,630 Mil.
Depreciation, Depletion and Amortization(DDA) was $584 Mil.
Selling, General & Admin. Expense(SGA) was $131 Mil.
Total Current Liabilities was $347 Mil.
Long-Term Debt was $532 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)
=(351.317 / 1850.063) / (490.224 / 3592.94)
=0.18989461 / 0.13644091
=1.3918

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)
=(1675.28 / 3592.94) / (838.701 / 1850.063)
=0.46626996 / 0.45333645
=1.0285

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 - (1537.672 + 5306.434) / 6976.519) / (1 - (1501.691 + 5630.311) / 7335.817)
=0.01897981 / 0.02778354
=0.6831

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
=1850.063 / 3592.94
=0.5149

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))
=(583.816 / (583.816 + 5630.311)) / (595.883 / (595.883 + 5306.434))
=0.0939498 / 0.10095747
=0.9306

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)
=(150.303 / 1850.063) / (131.227 / 3592.94)
=0.0812421 / 0.03652357
=2.2244

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)
=((493.15 + 326.609) / 6976.519) / ((532.388 + 346.503) / 7335.817)
=0.11750258 / 0.1198082
=0.9808

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
=(-9.791 - -0.063 - 882.598) / 6976.519
=-0.1279

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 -3.48 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

Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15
DSRI 1.13910.8961.09630.55831.72280.82811.08740.93181.03350.7487
GMI 0.85950.97661.00960.95661.13830.98050.98260.98130.98570.9957
AQI 0.95640.7760.741.77880.74190.93571.11960.63640.72040.5362
SGI 1.52961.33051.24970.90531.0171.35661.2391.07481.0980.851
DEPI 1.39331.00890.87211.09560.89560.93960.96620.92110.96870.9323
SGAI 0.82680.68680.96331.13871.3620.82730.94711.09460.97481.1731
LVGI 1.18311.13040.93870.7940.80090.93740.77320.84360.95731.4503
TATA -0.0108-0.0609-0.0473-0.1304-0.0722-0.1086-0.0733-0.0675-0.0676-0.1392
M-score -2.01-2.66-2.48-3.23-2.18-2.82-2.41-2.92-2.78-3.87

Helmerich & Payne Inc Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.98861.05621.03351.02770.89740.69580.74870.76430.961.3918
GMI 0.97070.98870.98570.99250.99470.98710.99571.02171.02661.0285
AQI 0.53120.91130.72040.55450.60160.62190.53620.61160.60970.6831
SGI 1.04661.07361.0981.13381.11360.99830.8510.66620.55230.5149
DEPI 0.94530.98580.96870.99720.98440.96340.93230.91630.92880.9306
SGAI 1.02860.98170.97480.94890.9581.0051.17311.48561.76882.2244
LVGI 0.96180.85850.95730.82231.57451.37751.45031.7640.97780.9808
TATA -0.0687-0.0571-0.0676-0.0754-0.0954-0.1165-0.1392-0.1539-0.1411-0.1279
M-score -2.97-2.62-2.78-2.81-3.27-3.59-3.87-4.20-3.85-3.48
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