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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-2.19 (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 -2.19 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: -2.19

-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 * 2.0037+0.528 * 1.1385+0.404 * 3.8829+0.892 * 0.4972+0.115 * 1.0541
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.6427+4.679 * -0.259-0.327 * 1.328
=-2.19

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $521 Mil.
Revenue was 430.295 + 658.094 + 714.949 + 738.29 = $2,542 Mil.
Gross Profit was 258.555 + 457.829 + 516.858 + 491.758 = $1,725 Mil.
Total Current Assets was $1,699 Mil.
Total Assets was $11,461 Mil.
Property, Plant and Equipment(Net PPE) was $9,492 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,425 Mil.
Selling, General & Admin. Expense(SGA) was $293 Mil.
Total Current Liabilities was $1,378 Mil.
Long-Term Debt was $3,410 Mil.
Net Income was -198.802 + -587.132 + -1595.426 + -73.834 = $-2,455 Mil.
Non Operating Income was -107.976 + 2335.215 + -2380.384 + -27.104 = $-180 Mil.
Cash Flow from Operations was 43.312 + 86.841 + 381.317 + 181.367 = $693 Mil.
Accounts Receivable was $523 Mil.
Revenue was 921.747 + 1407.626 + 1433.037 + 1349.021 = $5,111 Mil.
Gross Profit was 668.535 + 1107.954 + 1138.945 + 1034.263 = $3,950 Mil.
Total Current Assets was $2,588 Mil.
Total Assets was $15,161 Mil.
Property, Plant and Equipment(Net PPE) was $12,481 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,991 Mil.
Selling, General & Admin. Expense(SGA) was $359 Mil.
Total Current Liabilities was $2,177 Mil.
Long-Term Debt was $2,592 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)
=(521.434 / 2541.628) / (523.368 / 5111.431)
=0.20515748 / 0.10239168
=2.0037

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)
=(3949.697 / 5111.431) / (1725 / 2541.628)
=0.77271844 / 0.67869885
=1.1385

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 - (1698.93 + 9492.348) / 11460.697) / (1 - (2588.188 + 12480.861) / 15160.837)
=0.02350808 / 0.00605428
=3.8829

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
=2541.628 / 5111.431
=0.4972

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))
=(1991.025 / (1991.025 + 12480.861)) / (1424.946 / (1424.946 + 9492.348))
=0.13757882 / 0.1305219
=1.0541

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)
=(293.203 / 2541.628) / (358.945 / 5111.431)
=0.11536031 / 0.07022397
=1.6427

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)
=((3409.518 + 1377.755) / 11460.697) / ((2591.709 + 2176.919) / 15160.837)
=0.4177122 / 0.31453593
=1.328

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
=(-2455.194 - -180.249 - 692.837) / 11460.697
=-0.259

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 -2.19 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 0.95481.10770.48782.04790.81660.89121.15582.86520.85971.0806
GMI 1.32411.11790.79530.85151.17951.13540.8630.21490.93071.0047
AQI 1.47811.41961.00660.48020.89380.68881.50811.29250.22872.9094
SGI 1.20461.28881.49210.6911.22791.18851.03170.18831.0160.5539
DEPI 1.18721.03550.71690.9751.00881.06860.98850.92540.82590.8834
SGAI 1.19390.77860.67172.05140.69790.90721.14155.68050.94491.521
LVGI 0.96541.19690.75971.06010.98130.79971.48391.09040.96291.211
TATA -0.0409-0.091-0.1221-0.0869-0.1602-0.0876-0.1012-0.1392-0.1207-0.2857
M-score -2.17-2.34-3.09-2.69-3.08-2.79-2.83-3.28-3.51-3.54

Murphy Oil Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.34080.86240.17820.08740.85970.54750.61830.63871.08062.0037
GMI 0.33290.54292.25116.61560.95571.01621.04441.10271.11691.1385
AQI 1.29252.2812.65941.03050.22870.20330.19332.23152.90943.8829
SGI 0.40240.69672.83717.99981.0160.94910.83310.69840.55390.4972
DEPI 0.85020.83860.82860.89650.82590.75660.78680.70540.88341.0541
SGAI 3.20041.94390.48850.14890.94490.97041.03531.24611.5211.6427
LVGI 1.09041.13271.02821.12270.96290.85290.90151.0651.2111.328
TATA -0.1148-0.1143-0.1272-0.1244-0.1248-0.1301-0.1059-0.0461-0.2857-0.259
M-score -3.90-3.36-0.805.41-3.51-3.84-3.78-2.84-3.48-2.19
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