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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-1.96 (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.

Murphy Oil Corp has a M-score of -1.96 signals that the company is a manipulator.

MUR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.9   Max: 89.9
Current: -1.96

-3.9
89.9

During the past 13 years, the highest Beneish M-Score of Murphy Oil Corp was 89.90. The lowest was -3.90. And the median was -2.61.


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 Murphy Oil Corp 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 * 1.0861+0.528 * 1.1304+0.404 * 6.5355+0.892 * 0.4979+0.115 * 1.028
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6457+4.679 * -0.2803-0.327 * 0.9991
=-1.96

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $293 Mil.
Revenue was 437.462 + 430.295 + 658.094 + 714.949 = $2,241 Mil.
Gross Profit was 267.493 + 258.555 + 457.829 + 516.858 = $1,501 Mil.
Total Current Assets was $1,038 Mil.
Total Assets was $9,915 Mil.
Property, Plant and Equipment(Net PPE) was $8,565 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,277 Mil.
Selling, General & Admin. Expense(SGA) was $281 Mil.
Total Current Liabilities was $881 Mil.
Long-Term Debt was $2,435 Mil.
Net Income was 2.93 + -198.802 + -587.132 + -1595.426 = $-2,378 Mil.
Non Operating Income was -27.266 + -107.976 + 2335.215 + -2380.384 = $-180 Mil.
Cash Flow from Operations was 70.066 + 43.312 + 86.841 + 381.317 = $582 Mil.
Accounts Receivable was $542 Mil.
Revenue was 738.29 + 921.747 + 1407.626 + 1433.037 = $4,501 Mil.
Gross Profit was 491.758 + 668.535 + 1107.954 + 1138.945 = $3,407 Mil.
Total Current Assets was $2,499 Mil.
Total Assets was $15,150 Mil.
Property, Plant and Equipment(Net PPE) was $12,578 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,935 Mil.
Selling, General & Admin. Expense(SGA) was $343 Mil.
Total Current Liabilities was $1,807 Mil.
Long-Term Debt was $3,265 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)
=(293.312 / 2240.8) / (542.417 / 4500.7)
=0.13089611 / 0.12051836
=1.0861

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)
=(3407.192 / 4500.7) / (1500.735 / 2240.8)
=0.75703602 / 0.66973179
=1.1304

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 - (1037.855 + 8565.485) / 9914.632) / (1 - (2499.433 + 12577.749) / 15149.964)
=0.03139723 / 0.0048041
=6.5355

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
=2240.8 / 4500.7
=0.4979

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))
=(1935.422 / (1935.422 + 12577.749)) / (1276.795 / (1276.795 + 8565.485))
=0.13335625 / 0.12972553
=1.028

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)
=(281.14 / 2240.8) / (343.121 / 4500.7)
=0.12546412 / 0.07623725
=1.6457

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)
=((2435.486 + 880.749) / 9914.632) / ((3264.868 + 1806.788) / 15149.964)
=0.33447888 / 0.33476357
=0.9991

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
=(-2378.43 - -180.411 - 581.536) / 9914.632
=-0.2803

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.

Murphy Oil Corp has a M-score of -1.96 signals that the company is likely to 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.

Murphy Oil Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.9391.10770.48922.04190.95154.961.10450.46240.85971.0806
GMI 1.24921.12420.49571.49370.98770.23310.94970.91030.96161.1101
AQI 1.47811.41961.00660.48020.89380.68881.50811.29250.22872.9094
SGI 1.22491.28881.48770.69311.05380.21351.07971.16681.0160.5539
DEPI 1.14131.07710.75351.02670.96591.13010.960.85020.82590.8834
SGAI 1.17420.77850.66981.52991.00453.81271.10681.30230.94491.521
LVGI 0.96541.19690.75971.06010.98130.79971.48391.09040.96291.211
TATA -0.0417-0.091-0.126-0.0644-0.1644-0.0877-0.1079-0.1148-0.1238-0.2857
M-score -2.21-2.33-3.26-2.15-3.29-0.88-2.82-3.39-3.50-3.48

Murphy Oil Corp Quarterly Data

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.86240.17820.08740.85970.54750.61830.63871.08062.00371.0861
GMI 0.54292.25116.61560.95571.01621.04441.10271.11691.13851.1304
AQI 2.2812.65941.03050.22870.20330.19332.23152.90943.88296.5355
SGI 0.69672.83717.99981.0160.94910.83310.69840.55390.49720.4979
DEPI 0.83860.82860.89650.82590.75660.78680.70540.88341.05411.028
SGAI 1.94390.48850.14890.94490.97041.03531.24611.5211.64271.6457
LVGI 1.13271.02821.12270.96290.85290.90151.0651.2111.3280.9991
TATA -0.1143-0.1272-0.1244-0.1248-0.1301-0.1059-0.0461-0.2857-0.259-0.2803
M-score -3.36-0.805.41-3.51-3.84-3.78-2.84-3.48-2.19-1.96
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