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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-3.52 (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 -3.52 suggests that the company is not a manipulator.

MUR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.9   Max: 89.9
Current: -3.52

-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 -2.62.


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 * 1.7275+0.528 * 1.101+0.404 * 1.4433+0.892 * 0.5357+0.115 * 1.3483
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.4895+4.679 * -0.3207-0.327 * 0.9487
=-3.52

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $401 Mil.
Revenue was 500.533 + 437.462 + 430.295 + 658.094 = $2,026 Mil.
Gross Profit was 371.278 + 267.493 + 258.555 + 457.829 = $1,355 Mil.
Total Current Assets was $1,605 Mil.
Total Assets was $10,394 Mil.
Property, Plant and Equipment(Net PPE) was $8,440 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,099 Mil.
Selling, General & Admin. Expense(SGA) was $265 Mil.
Total Current Liabilities was $914 Mil.
Long-Term Debt was $2,974 Mil.
Net Income was -16.176 + 2.93 + -198.802 + -587.132 = $-799 Mil.
Non Operating Income was -32.516 + -27.266 + -107.976 + 2335.215 = $2,167 Mil.
Cash Flow from Operations was 166.972 + 70.066 + 43.312 + 86.841 = $367 Mil.
Accounts Receivable was $433 Mil.
Revenue was 714.949 + 738.29 + 921.747 + 1407.626 = $3,783 Mil.
Gross Profit was 516.858 + 491.758 + 668.535 + 1107.954 = $2,785 Mil.
Total Current Assets was $2,166 Mil.
Total Assets was $12,628 Mil.
Property, Plant and Equipment(Net PPE) was $10,169 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,870 Mil.
Selling, General & Admin. Expense(SGA) was $332 Mil.
Total Current Liabilities was $1,651 Mil.
Long-Term Debt was $3,328 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)
=(400.532 / 2026.384) / (432.791 / 3782.612)
=0.19765849 / 0.11441591
=1.7275

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)
=(2785.105 / 3782.612) / (1355.155 / 2026.384)
=0.73629148 / 0.66875528
=1.101

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 - (1605.124 + 8440.336) / 10394.015) / (1 - (2165.803 + 10168.75) / 12627.962)
=0.0335342 / 0.02323487
=1.4433

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
=2026.384 / 3782.612
=0.5357

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))
=(1869.977 / (1869.977 + 10168.75)) / (1098.989 / (1098.989 + 8440.336))
=0.15533013 / 0.11520616
=1.3483

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)
=(264.872 / 2026.384) / (331.952 / 3782.612)
=0.13071165 / 0.08775735
=1.4895

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)
=((2973.888 + 914.201) / 10394.015) / ((3327.689 + 1651.235) / 12627.962)
=0.37406998 / 0.39427771
=0.9487

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
=(-799.18 - 2167.457 - 367.191) / 10394.015
=-0.3207

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 -3.52 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 local exchange's 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

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.17820.08740.85970.54750.61830.63871.08062.00371.08611.7275
GMI 2.25116.61560.95571.01621.04441.10271.11691.13851.13041.101
AQI 2.65941.03050.22870.20330.19332.23152.90943.88296.53551.4433
SGI 2.83717.99981.0160.94910.83310.69840.55390.49720.49790.5357
DEPI 0.82860.89650.82590.75660.78680.70540.88341.05411.0281.3483
SGAI 0.48850.14890.94490.97041.03531.24611.5211.64271.64571.4895
LVGI 1.02821.12270.96290.85290.90151.0651.2111.3280.99910.9487
TATA -0.1272-0.1244-0.1248-0.1301-0.1059-0.0461-0.2857-0.259-0.2803-0.3207
M-score -0.805.41-3.51-3.84-3.78-2.84-3.48-2.19-1.96-3.52
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