Switch to:
Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-3.08 (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 -3.42 suggests that the company is not a manipulator.

MUR' s 10-Year Beneish M-Score Range
Min: -3.65   Max: -1.47
Current: -3.08

-3.65
-1.47

During the past 13 years, the highest Beneish M-Score of Murphy Oil Corp was -1.47. The lowest was -3.65. 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 * 1.767+0.528 * 0.3077+0.404 * 2.281+0.892 * 0.34+0.115 * 0.8386
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.8743+4.679 * -0.1395-0.327 * 1.1327
=-3.42

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $1,007 Mil.
Revenue was 1286.4 + -2947.801 + 2957.857 + 1331.986 = $2,628 Mil.
Gross Profit was 885.679 + 729.295 + 995.359 + 991.439 = $3,602 Mil.
Total Current Assets was $3,374 Mil.
Total Assets was $17,551 Mil.
Property, Plant and Equipment(Net PPE) was $13,655 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,587 Mil.
Selling, General & Admin. Expense(SGA) was $379 Mil.
Total Current Liabilities was $3,057 Mil.
Long-Term Debt was $3,416 Mil.
Net Income was 155.253 + 75.421 + 284.809 + 402.644 = $918 Mil.
Non Operating Income was -0.814 + -15.768 + -53.1 + -16.386 = $-86 Mil.
Cash Flow from Operations was 735.879 + 959.971 + 1009.506 + 747.883 = $3,453 Mil.
Accounts Receivable was $1,676 Mil.
Revenue was 1290.938 + -3365.385 + 2646.728 + 7157.605 = $7,730 Mil.
Gross Profit was 845.222 + 751.213 + 765.869 + 897.201 = $3,260 Mil.
Total Current Assets was $4,099 Mil.
Total Assets was $17,752 Mil.
Property, Plant and Equipment(Net PPE) was $13,421 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,284 Mil.
Selling, General & Admin. Expense(SGA) was $288 Mil.
Total Current Liabilities was $3,272 Mil.
Long-Term Debt was $2,507 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)
=(1007.125 / 2628.442) / (1676.172 / 7729.886)
=0.38316425 / 0.21684304
=1.767

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)
=(729.295 / 7729.886) / (885.679 / 2628.442)
=0.42167569 / 1.37030682
=0.3077

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 - (3373.559 + 13654.991) / 17551.138) / (1 - (4098.803 + 13421.164) / 17751.685)
=0.02977516 / 0.0130533
=2.281

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
=2628.442 / 7729.886
=0.34

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))
=(1283.649 / (1283.649 + 13421.164)) / (1586.501 / (1586.501 + 13654.991))
=0.08729448 / 0.10409092
=0.8386

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)
=(379.091 / 2628.442) / (287.753 / 7729.886)
=0.1442265 / 0.03722603
=3.8743

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)
=((3415.621 + 3056.844) / 17551.138) / ((2507.311 + 3272.083) / 17751.685)
=0.36877751 / 0.32556876
=1.1327

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
=(918.127 - -86.068 - 3453.239) / 17551.138
=-0.1395

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 -3.42 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

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.82350.63690.62451.03452.4664.14524.38559.00182.74481.767
GMI 1.09631.09571.0660.94080.48980.28470.06710.08160.1830.3077
AQI 0.68880.68910.750.50751.50810.93120.66610.44591.29252.281
SGI 1.28631.25451.15040.88980.48360.27230.06770.09410.19660.34
DEPI 1.03870.96560.90851.02941.06371.091.10150.90730.85020.8386
SGAI 0.86910.93051.01451.2452.03483.325912.933910.82776.36793.8743
LVGI 0.79970.83820.76610.92761.48391.39121.62081.24061.09041.1327
TATA -0.0867-0.1122-0.11-0.0984-0.1184-0.1096-0.1181-0.1349-0.1392-0.1395
M-score -2.78-3.13-3.21-3.25-2.54-1.6714.780.95-3.53-3.42
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)
Free 7-day Trial
FEEDBACK
Email Hide