Switch to:
Key Energy Services Inc (NYSE:KEG)
Beneish M-Score
-5.49 (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.

Key Energy Services Inc has a M-score of -5.49 suggests that the company is not a manipulator.

KEG' s Beneish M-Score Range Over the Past 10 Years
Min: -17.58   Max: -0.72
Current: -5.49

-17.58
-0.72

During the past 13 years, the highest Beneish M-Score of Key Energy Services Inc was -0.72. The lowest was -17.58. And the median was -2.74.


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 Key Energy Services 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 * 0.7843+0.528 * 4.5296+0.404 * 0.0488+0.892 * 0.4747+0.115 * 0.8512
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4438+4.679 * -0.7225-0.327 * 2.0614
=-5.49

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $84.9 Mil.
Revenue was 111.088 + 150.174 + 176.857 + 197.496 = $635.6 Mil.
Gross Profit was 20.49 + -26.587 + 2.352 + 38.655 = $34.9 Mil.
Total Current Assets was $354.3 Mil.
Total Assets was $1,226.0 Mil.
Property, Plant and Equipment(Net PPE) was $854.6 Mil.
Depreciation, Depletion and Amortization(DDA) was $169.6 Mil.
Selling, General & Admin. Expense(SGA) was $181.2 Mil.
Total Current Liabilities was $140.5 Mil.
Long-Term Debt was $954.7 Mil.
Net Income was -81.614 + -152.485 + -640.161 + -65.379 = $-939.6 Mil.
Non Operating Income was 1.099 + 0.645 + -5.976 + 0.223 = $-4.0 Mil.
Cash Flow from Operations was -30.064 + -1.548 + -19.64 + 1.466 = $-49.8 Mil.
Accounts Receivable was $228.1 Mil.
Revenue was 267.799 + 354.802 + 365.798 + 350.595 = $1,339.0 Mil.
Gross Profit was 63.269 + 88.448 + 93.686 + 87.712 = $333.1 Mil.
Total Current Assets was $380.2 Mil.
Total Assets was $2,222.4 Mil.
Property, Plant and Equipment(Net PPE) was $1,202.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $197.3 Mil.
Selling, General & Admin. Expense(SGA) was $264.4 Mil.
Total Current Liabilities was $184.8 Mil.
Long-Term Debt was $778.3 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)
=(84.929 / 635.615) / (228.11 / 1338.994)
=0.13361705 / 0.17035924
=0.7843

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)
=(-26.587 / 1338.994) / (20.49 / 635.615)
=0.24878005 / 0.05492318
=4.5296

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 - (354.254 + 854.576) / 1226.046) / (1 - (380.225 + 1202.523) / 2222.4)
=0.01404189 / 0.28782037
=0.0488

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
=635.615 / 1338.994
=0.4747

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))
=(197.344 / (197.344 + 1202.523)) / (169.628 / (169.628 + 854.576))
=0.14097339 / 0.16561935
=0.8512

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)
=(181.232 / 635.615) / (264.424 / 1338.994)
=0.28512858 / 0.1974796
=1.4438

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)
=((954.719 + 140.502) / 1226.046) / ((778.287 + 184.79) / 2222.4)
=0.89329519 / 0.43334998
=2.0614

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
=(-939.639 - -4.009 - -49.786) / 1226.046
=-0.7225

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.

Key Energy Services Inc has a M-score of -5.49 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.

Key Energy Services Inc Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.99071.17290.92611.041.14040.90551.0041.06270.9250.7219
GMI 0.87180.96681.1121.31941.00420.78511.0591.10821.16392.6272
AQI 0.85621.06390.81381.45020.98091.07630.86351.03911.01750.0732
SGI 1.29881.07491.18660.5471.06951.60091.06130.81210.89680.5551
DEPI 1.00851.23160.90160.79411.32191.07260.95790.91471.0130.8222
SGAI 0.91871.20210.94271.26771.03740.750.91231.18471.25541.4622
LVGI 0.90490.98361.120.95360.87321.09281.02060.92211.09521.9933
TATA -0.0594-0.0375-0.1602-0.2283-0.0519-0.0178-0.1335-0.0971-0.1471-0.6671
M-score -2.58-2.42-3.19-3.62-2.47-2.18-3.07-2.99-3.31-6.19

Key Energy Services Inc Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.06270.98890.85550.91120.9250.8070.74120.63130.72190.7843
GMI 1.10821.08471.10581.16151.16391.17941.17131.37562.62724.5296
AQI 1.03911.05771.05241.06611.01751.03570.99630.1130.07320.0488
SGI 0.81210.79890.81160.84590.89680.88130.81310.69490.55510.4747
DEPI 0.91470.93290.97650.97481.0131.00670.97750.92830.82220.8512
SGAI 1.18471.13641.12111.14381.25541.41951.49591.52431.46221.4438
LVGI 0.92210.92580.91821.0111.09521.12851.28381.81481.99332.0614
TATA -0.097-0.1127-0.1519-0.1408-0.1471-0.1515-0.1254-0.5496-0.6671-0.7225
M-score -2.99-3.14-3.41-3.28-3.31-3.48-3.56-6.19-6.19-5.49
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK