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Helmerich & Payne Inc (NYSE:HP)
Beneish M-Score
-3.60 (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 -3.60 suggests that the company is not a manipulator.

HP' s 10-Year Beneish M-Score Range
Min: -3.94   Max: -2.04
Current: -3.6

-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 -2.72.


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 * 0.6975+0.528 * 0.9887+0.404 * 0.6219+0.892 * 0.9959+0.115 * 0.9661
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0092+4.679 * -0.1166-0.327 * 1.3775
=-3.60

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $490 Mil.
Revenue was 659.694 + 883.052 + 1056.585 + 985.038 = $3,584 Mil.
Gross Profit was 308.024 + 413.724 + 502.342 + 444.58 = $1,669 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 $582 Mil.
Selling, General & Admin. Expense(SGA) was $131 Mil.
Total Current Liabilities was $347 Mil.
Long-Term Debt was $532 Mil.
Net Income was 90.86 + 149.537 + 203.042 + 168.688 = $612 Mil.
Non Operating Income was -0.281 + 0.055 + 0.314 + -0.605 = $-1 Mil.
Cash Flow from Operations was 334.955 + 422.892 + 389.692 + 320.632 = $1,468 Mil.
Accounts Receivable was $706 Mil.
Revenue was 952.087 + 893.43 + 889.152 + 864.536 = $3,599 Mil.
Gross Profit was 436.848 + 413.263 + 415.104 + 391.366 = $1,657 Mil.
Total Current Assets was $1,450 Mil.
Total Assets was $6,693 Mil.
Property, Plant and Equipment(Net PPE) was $4,944 Mil.
Depreciation, Depletion and Amortization(DDA) was $492 Mil.
Selling, General & Admin. Expense(SGA) was $131 Mil.
Total Current Liabilities was $502 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)
=(490.224 / 3584.369) / (705.787 / 3599.205)
=0.13676717 / 0.19609525
=0.6975

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)
=(413.724 / 3599.205) / (308.024 / 3584.369)
=0.46026303 / 0.4655408
=0.9887

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 - (1501.691 + 5630.311) / 7335.817) / (1 - (1450.421 + 4943.66) / 6693.082)
=0.02778354 / 0.04467314
=0.6219

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
=3584.369 / 3599.205
=0.9959

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))
=(491.979 / (491.979 + 4943.66)) / (581.987 / (581.987 + 5630.311))
=0.09050987 / 0.09368305
=0.9661

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)
=(131.456 / 3584.369) / (130.799 / 3599.205)
=0.0366748 / 0.03634108
=1.0092

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)
=((532.388 + 346.503) / 7335.817) / ((80 + 502.111) / 6693.082)
=0.1198082 / 0.08697204
=1.3775

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
=(612.127 - -0.517 - 1468.171) / 7335.817
=-0.1166

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 -3.60 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 1.00840.92870.93181.0330.98861.05621.03351.02880.8990.6975
GMI 0.97690.96170.98130.96140.97070.98870.98570.99090.99510.9887
AQI 1.00860.66730.63640.64970.53120.91130.72180.55450.60160.6219
SGI 1.17021.1091.07481.05161.04661.07361.0981.13261.11170.9959
DEPI 0.9240.88930.92110.9160.94530.98580.96870.99820.98620.9661
SGAI 1.00221.09051.09461.05571.02860.98170.97480.95110.96021.0092
LVGI 0.72830.86190.84360.83120.96180.85850.95870.82231.57451.3775
TATA -0.074-0.0926-0.0675-0.0569-0.0687-0.0571-0.0676-0.075-0.0955-0.1166
M-score -2.60-3.02-2.92-2.80-2.97-2.62-2.78-2.80-3.27-3.60
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