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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-3.59 (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 -3.59 suggests that the company is not a manipulator.

MUR' s 10-Year Beneish M-Score Range
Min: -3.59   Max: -2.07
Current: -3.59

-3.59
-2.07

During the past 13 years, the highest Beneish M-Score of Murphy Oil Corp was -2.07. The lowest was -3.59. And the median was -2.65.


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 * 0.5211+0.528 * 0.9014+0.404 * 1.2925+0.892 * 1.0352+0.115 * 0.8502
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3948+4.679 * -0.1392-0.327 * 1.0904
=-3.59

* 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 $1,000 Mil.
Revenue was -2947.801 + 2957.857 + 7217.842 + 6639.954 = $13,868 Mil.
Gross Profit was 729.295 + 995.359 + 1150.402 + 932.714 = $3,808 Mil.
Total Current Assets was $3,509 Mil.
Total Assets was $17,509 Mil.
Property, Plant and Equipment(Net PPE) was $13,481 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,553 Mil.
Selling, General & Admin. Expense(SGA) was $425 Mil.
Total Current Liabilities was $3,224 Mil.
Long-Term Debt was $2,937 Mil.
Net Income was 75.421 + 284.809 + 402.644 + 360.599 = $1,123 Mil.
Non Operating Income was -15.768 + -53.1 + -16.652 + 8.03 = $-77 Mil.
Cash Flow from Operations was 959.971 + 1009.506 + 747.883 + 921.127 = $3,638 Mil.
Accounts Receivable was $1,853 Mil.
Revenue was -3365.385 + 2646.728 + 7157.605 + 6956.936 = $13,396 Mil.
Gross Profit was 751.213 + 765.869 + 897.201 + 901.145 = $3,315 Mil.
Total Current Assets was $4,109 Mil.
Total Assets was $17,523 Mil.
Property, Plant and Equipment(Net PPE) was $13,012 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,253 Mil.
Selling, General & Admin. Expense(SGA) was $294 Mil.
Total Current Liabilities was $3,409 Mil.
Long-Term Debt was $2,245 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)
=(999.872 / 13867.852) / (1853.364 / 13395.884)
=0.07209999 / 0.13835324
=0.5211

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)
=(995.359 / 13395.884) / (729.295 / 13867.852)
=0.24749602 / 0.27457533
=0.9014

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 - (3508.643 + 13481.055) / 17509.484) / (1 - (4108.583 + 13011.606) / 17522.643)
=0.02968597 / 0.02296765
=1.2925

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
=13867.852 / 13395.884
=1.0352

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))
=(1253.095 / (1253.095 + 13011.606)) / (1553.394 / (1553.394 + 13481.055))
=0.08784587 / 0.10332231
=0.8502

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)
=(425.17 / 13867.852) / (294.445 / 13395.884)
=0.03065868 / 0.02198026
=1.3948

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)
=((2936.563 + 3224.031) / 17509.484) / ((2245.201 + 3409.081) / 17522.643)
=0.35184326 / 0.32268431
=1.0904

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
=(1123.473 - -77.49 - 3638.487) / 17509.484
=-0.1392

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 -3.59 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.

Murphy Oil Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.97170.87450.9391.10770.48922.04190.94520.7737.13450.4624
GMI 1.02080.96521.24921.12420.52521.40971.05911.17940.1771.0274
AQI 0.86520.92911.47811.41961.00660.48020.89380.68881.50811.2925
SGI 1.60691.40741.22491.28881.48770.69311.06091.37030.16711.1668
DEPI 0.85640.95921.14131.07710.75350.92771.04971.03871.06370.8502
SGAI 0.68890.85321.17420.77850.66982.05710.75010.83765.01781.3023
LVGI 0.83880.89390.96541.19690.75971.06010.98130.79971.48391.0904
TATA -0.0828-0.075-0.0294-0.0867-0.1166-0.0805-0.1677-0.0877-0.1184-0.1392
M-score -2.31-2.57-2.15-2.31-3.20-2.38-3.22-2.700.80-3.44

Murphy Oil Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.07580.82350.63690.62451.03452.4662.44983.53421.48270.5211
GMI 1.26491.09631.09571.0660.94080.48980.46920.43130.46370.9014
AQI 1.42680.68880.68910.750.50751.50810.93120.66610.44591.2925
SGI 1.21431.28631.25451.15040.88980.48360.46070.46710.5711.0352
DEPI 1.11851.03870.96560.90851.02941.06371.06681.05790.90730.8502
SGAI 0.76480.86910.93051.01451.2452.03482.15882.24442.09231.3948
LVGI 1.0420.79970.83820.76610.92761.48391.39121.62081.24061.0904
TATA -0.1089-0.0867-0.1122-0.11-0.0984-0.1184-0.1096-0.1181-0.1349-0.1392
M-score -2.38-2.78-3.13-3.21-3.25-2.54-2.77-2.02-3.83-3.59
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