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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-2.94 (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 -2.94 suggests that the company is not a manipulator.

MUR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.89   Max: 15.58
Current: -2.94

-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 -2.67.


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 * 0.6387+0.528 * 0.9925+0.404 * 2.2315+0.892 * 0.6984+0.115 * 0.7054
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2461+4.679 * -0.0535-0.327 * 1.065
=-2.94

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
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 + 689.326 + 1215.169 = $2,913 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.
Net Income was -1595.426 + -73.834 + -14.441 + 375.238 = $-1,308 Mil.
Non Operating Income was -2331.084 + -25.681 + -49.681 + -37.438 = $-2,444 Mil.
Cash Flow from Operations was 381.317 + 181.367 + 533.844 + 714.342 = $1,811 Mil.
Accounts Receivable was $970 Mil.
Revenue was 1433.037 + 1349.021 + 1286.4 + 1347.669 = $5,416 Mil.
Gross Profit was 1138.945 + 1034.263 + 1024.145 + 942.379 = $4,140 Mil.
Total Current Assets was $3,287 Mil.
Total Assets was $17,846 Mil.
Property, Plant and Equipment(Net PPE) was $14,373 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,769 Mil.
Selling, General & Admin. Expense(SGA) was $381 Mil.
Total Current Liabilities was $2,620 Mil.
Long-Term Debt was $3,986 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)
=(432.791 / 3782.612) / (970.286 / 5416.127)
=0.11441591 / 0.17914757
=0.6387

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)
=(491.758 / 5416.127) / (516.858 / 3782.612)
=0.76433437 / 0.77013212
=0.9925

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 - (2165.803 + 10168.75) / 12627.962) / (1 - (3287.118 + 14372.837) / 17845.766)
=0.02323487 / 0.01041205
=2.2315

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
=3782.612 / 5416.127
=0.6984

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))
=(1768.594 / (1768.594 + 14372.837)) / (1869.977 / (1869.977 + 10168.75))
=0.1095686 / 0.15533013
=0.7054

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)
=(331.952 / 3782.612) / (381.449 / 5416.127)
=0.08775735 / 0.07042837
=1.2461

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)
=((3327.689 + 1651.235) / 12627.962) / ((3986.261 + 2620.217) / 17845.766)
=0.39427771 / 0.37019862
=1.065

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
=(-1308.463 - -2443.884 - 1810.87) / 12627.962
=-0.0535

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 -2.94 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.9391.10770.48922.04190.95154.961.10450.46240.85970
GMI 1.24921.12420.49571.49370.98770.23310.94971.01420.95360.9746
AQI 1.47811.41961.00660.48020.89380.68881.50811.29250.26582.4845
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 0.96541.19690.75971.06010.98130.79971.48391.09040.96491.2063
TATA -0.0294-0.0867-0.1166-0.0715-0.1604-0.0877-0.1086-0.1164-0.1235-0.048
M-score -2.15-2.31-3.22-2.19-3.28-0.88-2.82-3.34-3.49-3.61

Murphy Oil Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 29.45581.34080.86240.17820.08740.85970.54750.61830.63870
GMI 0.030.36630.59592.46757.22390.87310.92430.94590.99251.1276
AQI 0.44591.29252.2812.65941.03050.26580.20330.19332.23152.4845
SGI 0.02870.40240.69672.83717.99981.0160.94910.83310.69840.5539
DEPI 0.84620.85020.83860.82860.89650.82590.75660.78680.70540.8834
SGAI 34.69693.20041.94390.48850.14890.94490.97041.03531.24611.521
LVGI 1.24061.09041.13271.02821.12270.96490.85290.90151.0651.2063
TATA -0.1266-0.1164-0.1162-0.1286-0.1259-0.1242-0.1325-0.1089-0.0535-0.049
M-score 15.61-3.89-3.34-0.695.73-3.54-3.90-3.84-2.94-3.53
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