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Helmerich & Payne Inc (NYSE:HP)
Beneish M-Score
-3.12 (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 -3.12 suggests that the company is not a manipulator.

HP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.88   Max: -2.01
Current: -3.12

-3.88
-2.01

During the past 13 years, the highest Beneish M-Score of Helmerich & Payne Inc was -2.01. The lowest was -3.88. And the median was -2.76.


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 * 1.6376+0.528 * 1.0327+0.404 * 0.8275+0.892 * 0.5137+0.115 * 0.9454
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.1123+4.679 * -0.1147-0.327 * 1.0229
=-3.12

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $375 Mil.
Revenue was 331.708 + 366.486 + 438.191 + 487.847 = $1,624 Mil.
Gross Profit was 117.304 + 180.34 + 216.58 + 211.203 = $725 Mil.
Total Current Assets was $1,573 Mil.
Total Assets was $6,832 Mil.
Property, Plant and Equipment(Net PPE) was $5,145 Mil.
Depreciation, Depletion and Amortization(DDA) was $599 Mil.
Selling, General & Admin. Expense(SGA) was $146 Mil.
Total Current Liabilities was $330 Mil.
Long-Term Debt was $492 Mil.
Net Income was -72.835 + -21.2 + 21.205 + 16.002 = $-57 Mil.
Non Operating Income was -27.88 + 0.534 + 0.653 + -0.261 = $-27 Mil.
Cash Flow from Operations was 138.187 + 122.893 + 184.321 + 308.196 = $754 Mil.
Accounts Receivable was $446 Mil.
Revenue was 553.8 + 661.445 + 885.67 + 1060.787 = $3,162 Mil.
Gross Profit was 227.526 + 310.805 + 418.571 + 501.324 = $1,458 Mil.
Total Current Assets was $1,439 Mil.
Total Assets was $7,147 Mil.
Property, Plant and Equipment(Net PPE) was $5,563 Mil.
Depreciation, Depletion and Amortization(DDA) was $608 Mil.
Selling, General & Admin. Expense(SGA) was $135 Mil.
Total Current Liabilities was $348 Mil.
Long-Term Debt was $492 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)
=(375.169 / 1624.232) / (445.948 / 3161.702)
=0.2309824 / 0.14104682
=1.6376

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)
=(1458.226 / 3161.702) / (725.427 / 1624.232)
=0.46121551 / 0.4466277
=1.0327

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 - (1572.686 + 5144.733) / 6832.019) / (1 - (1439.194 + 5563.17) / 7147.242)
=0.01677396 / 0.02027048
=0.8275

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
=1624.232 / 3161.702
=0.5137

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))
=(608.039 / (608.039 + 5563.17)) / (598.587 / (598.587 + 5144.733))
=0.09852834 / 0.10422317
=0.9454

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)
=(146.183 / 1624.232) / (134.712 / 3161.702)
=0.09000131 / 0.04260743
=2.1123

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)
=((491.847 + 330.12) / 6832.019) / ((492.443 + 348.197) / 7147.242)
=0.12031099 / 0.1176174
=1.0229

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
=(-56.828 - -26.954 - 753.597) / 6832.019
=-0.1147

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 -3.12 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 local exchange's currency.

Helmerich & Payne Inc Annual Data

Sep07Sep08Sep09Sep10Sep11Sep12Sep13Sep14Sep15Sep16
DSRI 0.8961.09630.55831.72280.82811.08740.93181.03460.74321.6376
GMI 0.97661.00960.95661.13830.98050.98260.98130.9850.99731.0327
AQI 0.7760.741.77880.74190.93571.11960.63640.72040.53330.8275
SGI 1.33051.24970.90531.0171.35661.2391.07481.09690.85080.5137
DEPI 1.00890.87211.09560.89560.93960.96620.92110.96790.9310.9454
SGAI 0.68680.96331.13871.3620.82730.94711.09460.97681.17042.1123
LVGI 1.13040.93870.7940.80090.93740.77320.84360.95731.44611.0229
TATA -0.0609-0.0473-0.1304-0.0722-0.1086-0.0733-0.0675-0.0695-0.1409-0.1147
M-score -2.66-2.48-3.23-2.18-2.82-2.41-2.92-2.79-3.88-3.12

Helmerich & Payne Inc Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.05621.03461.02870.89820.69650.74320.76460.96081.39311.6376
GMI 0.98870.9850.99190.9940.98640.99731.02351.02871.03091.0327
AQI 0.91130.72040.55450.60160.62190.53330.61160.60970.68310.8275
SGI 1.07361.09691.13271.11260.99720.85080.66590.55190.51440.5137
DEPI 0.98580.96790.99650.98370.96270.9310.91560.9280.92970.9454
SGAI 0.98170.97680.95070.95981.00711.17041.48271.76592.22142.1123
LVGI 0.85850.95730.82231.57451.37751.44611.7640.97780.98081.0229
TATA -0.0571-0.0695-0.0773-0.0972-0.1183-0.1409-0.1556-0.1428-0.1296-0.1147
M-score -2.62-2.79-2.81-3.27-3.60-3.88-4.21-3.86-3.48-3.12
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