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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-3.81 (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 -3.81 suggests that the company is not a manipulator.

MUR' s 10-Year Beneish M-Score Range
Min: -3.89   Max: 15.58
Current: -3.81

-3.89
15.58

During the past 13 years, the highest Beneish M-Score of Murphy Oil Corp was 15.58. The lowest was -3.89. And the median was -2.66.


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 * 0.6183+0.528 * 0.9918+0.404 * 0.1933+0.892 * 0.8331+0.115 * 0.7868
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0353+4.679 * -0.1073-0.327 * 0.9015
=-3.81

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $542 Mil.
Revenue was 738.29 + 921.747 + 1407.626 + 1433.037 = $4,501 Mil.
Gross Profit was 491.758 + 689.326 + 1008.487 + 1050.086 = $3,240 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.
Net Income was -73.834 + -14.441 + 375.238 + 245.707 = $533 Mil.
Non Operating Income was -25.681 + -49.681 + -74.43 + -0.662 = $-150 Mil.
Cash Flow from Operations was 181.367 + 533.844 + 694.622 + 898.851 = $2,309 Mil.
Accounts Receivable was $1,053 Mil.
Revenue was 1349.021 + 1286.4 + 1347.669 + 1419.496 = $5,403 Mil.
Gross Profit was 1034.263 + 1024.145 + 785.274 + 1013.127 = $3,857 Mil.
Total Current Assets was $3,233 Mil.
Total Assets was $17,874 Mil.
Property, Plant and Equipment(Net PPE) was $14,197 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,664 Mil.
Selling, General & Admin. Expense(SGA) was $398 Mil.
Total Current Liabilities was $2,851 Mil.
Long-Term Debt was $3,786 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)
=(542.417 / 4500.7) / (1053.122 / 5402.586)
=0.12051836 / 0.19492924
=0.6183

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)
=(689.326 / 5402.586) / (491.758 / 4500.7)
=0.71388202 / 0.71981181
=0.9918

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 - (2499.433 + 12577.749) / 15149.964) / (1 - (3232.933 + 14196.884) / 17873.934)
=0.0048041 / 0.02484719
=0.1933

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
=4500.7 / 5402.586
=0.8331

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))
=(1664.11 / (1664.11 + 14196.884)) / (1935.422 / (1935.422 + 12577.749))
=0.10491839 / 0.13335625
=0.7868

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)
=(343.121 / 4500.7) / (397.822 / 5402.586)
=0.07623725 / 0.07363548
=1.0353

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)
=((3264.868 + 1806.788) / 15149.964) / ((3786.494 + 2850.521) / 17873.934)
=0.33476357 / 0.37132368
=0.9015

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
=(532.67 - -150.454 - 2308.684) / 15149.964
=-0.1073

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 -3.81 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.87450.9391.10770.48922.04190.94520.7737.13450.46240.8597
GMI 0.96521.24921.12420.52521.40971.05911.02740.20321.00270.9536
AQI 0.92911.47811.41961.00660.48020.89380.68881.50811.29250.2658
SGI 1.40741.22491.28881.48770.69311.06091.37030.16711.16681.016
DEPI 0.95921.14131.07710.75350.92771.04971.03871.06370.85020.8259
SGAI 0.85321.17420.77850.66982.05710.75010.83765.01781.30230.9449
LVGI 0.89390.96541.19690.75971.06010.98130.79971.48391.09040.9649
TATA -0.075-0.0294-0.0867-0.1166-0.0805-0.1677-0.0619-0.1184-0.1164-0.1235
M-score -2.57-2.15-2.31-3.20-2.38-3.22-2.660.81-3.35-3.49

Murphy Oil Corp Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 4.14524.385529.45581.34080.86240.17820.08740.85970.54750.6183
GMI 0.32560.0770.02870.3670.59542.4677.39830.8970.95710.9918
AQI 0.93120.66610.44591.29252.2812.65941.03050.26580.20330.1933
SGI 0.27230.06770.02870.40240.69672.83717.99981.0160.94910.8331
DEPI 1.091.10150.92680.85020.83860.82860.89650.82590.75660.7868
SGAI 3.325912.933934.69693.20041.94390.48850.14890.94490.97041.0353
LVGI 1.39121.62081.24061.09041.13271.02821.12270.96490.85290.9015
TATA -0.1096-0.1181-0.1349-0.1164-0.1162-0.1286-0.1277-0.1227-0.1308-0.1073
M-score -1.6514.7815.58-3.89-3.34-0.705.81-3.52-3.87-3.81
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