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Helmerich & Payne Inc (NYSE:HP)
Beneish M-Score
-3.87 (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 -3.87 suggests that the company is not a manipulator.

HP' s Beneish M-Score Range Over the Past 10 Years
Min: -3.87   Max: -2.04
Current: -3.87

-3.87
-2.04

During the past 13 years, the highest Beneish M-Score of Helmerich & Payne Inc was -2.04. The lowest was -3.87. And the median was -2.78.


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 * 0.7477+0.528 * 0.9977+0.404 * 0.5362+0.892 * 0.8521+0.115 * 0.9323
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.17+4.679 * -0.1391-0.327 * 1.4503
=-3.87

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $449 Mil.
Revenue was 566.11 + 659.694 + 883.052 + 1060.787 = $3,170 Mil.
Gross Profit was 237.188 + 308.024 + 413.724 + 501.324 = $1,460 Mil.
Total Current Assets was $1,439 Mil.
Total Assets was $7,152 Mil.
Property, Plant and Equipment(Net PPE) was $5,567 Mil.
Depreciation, Depletion and Amortization(DDA) was $607 Mil.
Selling, General & Admin. Expense(SGA) was $135 Mil.
Total Current Liabilities was $351 Mil.
Long-Term Debt was $492 Mil.
Net Income was -21.214 + 90.86 + 149.537 + 203.608 = $423 Mil.
Non Operating Income was -0.989 + -0.281 + 0.055 + 0.314 = $-1 Mil.
Cash Flow from Operations was 271.205 + 334.955 + 419.275 + 393.309 = $1,419 Mil.
Accounts Receivable was $705 Mil.
Revenue was 985.038 + 952.087 + 893.43 + 889.152 = $3,720 Mil.
Gross Profit was 444.58 + 436.848 + 413.263 + 415.104 = $1,710 Mil.
Total Current Assets was $1,277 Mil.
Total Assets was $6,721 Mil.
Property, Plant and Equipment(Net PPE) was $5,189 Mil.
Depreciation, Depletion and Amortization(DDA) was $524 Mil.
Selling, General & Admin. Expense(SGA) was $135 Mil.
Total Current Liabilities was $507 Mil.
Long-Term Debt was $40 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)
=(449.344 / 3169.643) / (705.214 / 3719.707)
=0.14176486 / 0.18958859
=0.7477

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)
=(308.024 / 3719.707) / (237.188 / 3169.643)
=0.45965852 / 0.46070173
=0.9977

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 - (1439.007 + 5567.235) / 7152.012) / (1 - (1277.001 + 5188.544) / 6720.998)
=0.02038168 / 0.03800819
=0.5362

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
=3169.643 / 3719.707
=0.8521

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))
=(523.549 / (523.549 + 5188.544)) / (606.992 / (606.992 + 5567.235))
=0.09165625 / 0.09831061
=0.9323

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)
=(134.735 / 3169.643) / (135.139 / 3719.707)
=0.04250794 / 0.03633055
=1.17

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)
=((492.443 + 351.228) / 7152.012) / ((39.502 + 507.161) / 6720.998)
=0.11796275 / 0.08133658
=1.4503

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
=(422.791 - -0.901 - 1418.744) / 7152.012
=-0.1391

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 -3.87 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 -0.0177-0.0846-0.0588-0.1304-0.0722-0.1086-0.0733-0.0675-0.0676-0.1392
M-score -2.04-2.77-2.53-3.23-2.18-2.82-2.41-2.92-2.78-3.87

Helmerich & Payne Inc Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.93181.0330.98861.05621.03351.02770.8980.69660.74770.763
GMI 0.98130.96140.97070.98870.98570.99250.99670.99040.99771.0242
AQI 0.63640.64970.53120.91130.72040.55450.60160.62190.53620.6116
SGI 1.07481.05161.04661.07361.0981.13381.11290.9970.85210.6673
DEPI 0.92110.9160.94530.98580.96870.99720.98620.96610.93230.9163
SGAI 1.09461.05571.02860.98170.97480.94890.95791.00671.171.4813
LVGI 0.84360.83120.96180.85850.95730.82231.57451.37751.45031.764
TATA -0.0675-0.0569-0.0687-0.0571-0.0676-0.0754-0.0954-0.1165-0.1391-0.1538
M-score -2.92-2.80-2.97-2.62-2.78-2.81-3.26-3.59-3.87-4.20
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