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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-3.86 (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 -3.86 suggests that the company is not a manipulator.

MUR' s 10-Year Beneish M-Score Range
Min: -3.89   Max: 15.58
Current: -3.86

-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 -2.65.


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 * 0.5475+0.528 * 0.9847+0.404 * 0.2033+0.892 * 0.9491+0.115 * 0.7566
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9704+4.679 * -0.1317-0.327 * 0.8529
=-3.86

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $523 Mil.
Revenue was 921.747 + 1407.626 + 1433.037 + 1349.021 = $5,111 Mil.
Gross Profit was 689.326 + 1008.487 + 1050.086 + 928.344 = $3,676 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.
Net Income was -14.441 + 375.238 + 245.707 + 129.412 = $736 Mil.
Non Operating Income was -49.681 + -74.43 + -0.662 + 0.178 = $-125 Mil.
Cash Flow from Operations was 533.844 + 694.622 + 894.334 + 733.809 = $2,857 Mil.
Accounts Receivable was $1,007 Mil.
Revenue was 1286.4 + 1347.669 + 1419.496 + 1331.986 = $5,386 Mil.
Gross Profit was 1024.145 + 785.274 + 1013.127 + 991.439 = $3,814 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 $390 Mil.
Total Current Liabilities was $3,057 Mil.
Long-Term Debt was $3,416 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)
=(523.368 / 5111.431) / (1007.125 / 5385.551)
=0.10239168 / 0.18700501
=0.5475

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)
=(1008.487 / 5385.551) / (689.326 / 5111.431)
=0.70818845 / 0.71921992
=0.9847

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 - (2588.188 + 12480.861) / 15160.837) / (1 - (3373.559 + 13654.991) / 17551.138)
=0.00605428 / 0.02977516
=0.2033

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
=5111.431 / 5385.551
=0.9491

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))
=(1586.501 / (1586.501 + 13654.991)) / (1991.025 / (1991.025 + 12480.861))
=0.10409092 / 0.13757882
=0.7566

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)
=(358.945 / 5111.431) / (389.726 / 5385.551)
=0.07022397 / 0.07236511
=0.9704

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)
=((2591.709 + 2176.919) / 15160.837) / ((3415.621 + 3056.844) / 17551.138)
=0.31453593 / 0.36877751
=0.8529

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
=(735.916 - -124.595 - 2856.609) / 15160.837
=-0.1317

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 -3.86 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 2.4664.14524.385529.45581.34080.86240.17820.08740.85970.5475
GMI 0.56110.32560.0770.02870.3670.59542.53677.60520.92070.9847
AQI 1.50810.93120.66610.44591.29252.2812.65941.03050.26580.2033
SGI 0.48360.27230.06770.02870.40240.69672.83717.99981.0160.9491
DEPI 1.06371.091.10150.92680.85020.83860.82860.89650.82590.7566
SGAI 2.03483.325912.933934.69693.20041.94390.48850.14890.94490.9704
LVGI 1.48391.39121.62081.24061.09041.13271.02821.12270.96490.8529
TATA -0.1184-0.1096-0.1181-0.1349-0.1164-0.1162-0.1295-0.1284-0.1235-0.1317
M-score -2.50-1.6514.7815.58-3.89-3.34-0.665.92-3.51-3.86
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