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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-2.62 (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 -2.62 suggests that the company is not a manipulator.

MUR' s 10-Year Beneish M-Score Range
Min: -3.55   Max: 14.78
Current: -2.62

-3.55
14.78

During the past 13 years, the highest Beneish M-Score of Murphy Oil Corp was 14.78. The lowest was -3.55. And the median was -2.64.


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 * 0.3639+0.528 * 1.3166+0.404 * 2.6594+0.892 * 1.3892+0.115 * 0.8286
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.971+4.679 * -0.1519-0.327 * 1.0282
=-2.62

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $1,053 Mil.
Revenue was 1349.021 + 1286.4 + -2947.801 + 2957.857 = $2,645 Mil.
Gross Profit was 928.344 + 885.679 + 729.295 + 995.359 = $3,539 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 $387 Mil.
Total Current Liabilities was $2,851 Mil.
Long-Term Debt was $3,786 Mil.
Net Income was 129.412 + 155.253 + 75.421 + 284.809 = $645 Mil.
Non Operating Income was 0.178 + -0.814 + -15.768 + -53.1 = $-70 Mil.
Cash Flow from Operations was 723.804 + 735.879 + 959.971 + 1009.506 = $3,429 Mil.
Accounts Receivable was $2,083 Mil.
Revenue was 1331.986 + 1290.938 + -3365.385 + 2646.728 = $1,904 Mil.
Gross Profit was 991.439 + 845.222 + 751.213 + 765.869 = $3,354 Mil.
Total Current Assets was $4,416 Mil.
Total Assets was $18,825 Mil.
Property, Plant and Equipment(Net PPE) was $14,233 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,355 Mil.
Selling, General & Admin. Expense(SGA) was $287 Mil.
Total Current Liabilities was $3,752 Mil.
Long-Term Debt was $3,046 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)
=(1053.122 / 2645.477) / (2083.309 / 1904.267)
=0.39808398 / 1.09402148
=0.3639

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)
=(885.679 / 1904.267) / (928.344 / 2645.477)
=1.76117267 / 1.33763287
=1.3166

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 - (3232.933 + 14196.884) / 17873.934) / (1 - (4415.713 + 14233.376) / 18824.975)
=0.02484719 / 0.00934323
=2.6594

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
=2645.477 / 1904.267
=1.3892

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))
=(1355.211 / (1355.211 + 14233.376)) / (1664.11 / (1664.11 + 14196.884))
=0.0869361 / 0.10491839
=0.8286

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)
=(387.187 / 2645.477) / (287.038 / 1904.267)
=0.1463581 / 0.15073411
=0.971

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)
=((3786.494 + 2850.521) / 17873.934) / ((3046.062 + 3752.307) / 18824.975)
=0.37132368 / 0.36113562
=1.0282

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
=(644.895 - -69.504 - 3429.16) / 17873.934
=-0.1519

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 -2.62 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.63690.62451.03452.4664.14524.38559.00182.74481.7670.3639
GMI 1.09571.0660.94080.48980.28470.06710.08160.1830.30771.3166
AQI 0.68910.750.50751.50810.93120.66610.44591.29252.2812.6594
SGI 1.25451.15040.88980.48360.27230.06770.09410.19660.341.3892
DEPI 0.96560.90851.02941.06371.091.10150.90730.85020.83860.8286
SGAI 0.93051.01451.2452.03483.325912.933910.82776.36793.87430.971
LVGI 0.83820.76610.92761.48391.39121.62081.24061.09041.13271.0282
TATA -0.1122-0.11-0.0984-0.1184-0.1096-0.1181-0.1349-0.1392-0.1395-0.1519
M-score -3.13-3.21-3.25-2.54-1.6714.780.95-3.53-3.42-2.62
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