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Helmerich & Payne, Inc. (NYSE:HP)
Beneish M-Score
-3.78 (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 -3.75 suggests that the company is not a manipulator.

HP' s 10-Year Beneish M-Score Range
Min: -3.64   Max: -1.99
Current: -3.78

-3.64
-1.99

During the past 13 years, the highest Beneish M-Score of Helmerich & Payne, Inc. was -1.99. The lowest was -3.64. 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+0.528 * 0.9614+0.404 * 0.6497+0.892 * 1.0516+0.115 * 0.916
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0557+4.679 * -0.0569-0.327 * 0.8312
=-3.75

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $0 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.
Net Income was 173.182 + 159.797 + 266.159 + 151.08 = $750 Mil.
Non Operating Income was -0.345 + 3.186 + 152.155 + 0.103 = $155 Mil.
Cash Flow from Operations was 304.858 + 235.542 + 267.33 + 152.391 = $960 Mil.
Accounts Receivable was $580 Mil.
Revenue was 844.572 + 829.447 + 819.785 + 769.982 = $3,264 Mil.
Gross Profit was 377.701 + 382.112 + 355.85 + 321.774 = $1,437 Mil.
Total Current Assets was $979 Mil.
Total Assets was $5,934 Mil.
Property, Plant and Equipment(Net PPE) was $4,491 Mil.
Depreciation, Depletion and Amortization(DDA) was $408 Mil.
Selling, General & Admin. Expense(SGA) was $114 Mil.
Total Current Liabilities was $427 Mil.
Long-Term Debt was $195 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)
=(0 / 3432.194) / (580.173 / 3263.786)
=0 / 0.17776074
=0

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)
=(391.366 / 3263.786) / (415.104 / 3432.194)
=0.44042011 / 0.45808862
=0.9614

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 - (1391.29 + 4693.77) / 6410.587) / (1 - (979.432 + 4491.051) / 5934.288)
=0.05077959 / 0.07815681
=0.6497

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
=3432.194 / 3263.786
=1.0516

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))
=(407.86 / (407.86 + 4491.051)) / (469.261 / (469.261 + 4693.77))
=0.08325524 / 0.09088867
=0.916

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)
=(126.072 / 3432.194) / (113.565 / 3263.786)
=0.03673219 / 0.03479548
=1.0557

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)
=((80 + 478.737) / 6410.587) / ((195 + 427.233) / 5934.288)
=0.08715848 / 0.10485386
=0.8312

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
=(750.218 - 155.099 - 960.121) / 6410.587
=-0.0569

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 -3.75 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

Sep04Sep05Sep06Sep07Sep08Sep09Sep10Sep11Sep12Sep13
DSRI 1.25480.89791.16360.88231.08990.55831.92350.74181.090
GMI 1.08170.73590.85950.97661.00960.95661.13830.98050.98260.9813
AQI 1.0250.94320.95640.7760.741.77880.74190.93571.11960.6364
SGI 1.16591.35931.52961.33051.24970.90531.0171.35661.2391.0748
DEPI 0.8390.96731.39331.00890.87211.09560.89560.93960.96620.9211
SGAI 0.78780.80120.82680.68680.96331.13871.3620.82730.94711.0946
LVGI 0.90750.9421.18311.13040.93870.7940.80090.93740.77320.8436
TATA -0.08-0.0765-0.0177-0.0846-0.0588-0.1304-0.0722-0.1086-0.0733-0.0675
M-score -2.37-2.72-2.02-2.78-2.54-3.23-1.99-2.90-2.41-3.78

Helmerich & Payne, Inc. Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.74180.92880.92891.0811.090.96230000
GMI 0.98050.95810.97550.98670.98261.0060.97690.96170.98130.9614
AQI 0.93570.85720.80790.76011.11960.97271.00860.66730.63640.6497
SGI 1.35661.29331.27041.25851.2391.2171.17021.1091.07481.0516
DEPI 0.93960.96450.97610.98620.96620.94860.9240.88930.92110.916
SGAI 0.82730.9360.9410.92090.94710.95491.00221.09051.09461.0557
LVGI 0.93741.00360.95290.94330.77320.83050.72830.86190.84360.8312
TATA -0.1086-0.0953-0.0843-0.063-0.0733-0.087-0.074-0.0926-0.0675-0.0569
M-score -2.90-2.80-2.77-2.54-2.41-2.68-3.52-3.87-3.78-3.75
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