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Murphy Oil Corp (NYSE:MUR)
Beneish M-Score
-3.49 (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 -3.49 suggests that the company is not a manipulator.

MUR' s Beneish M-Score Range Over the Past 10 Years
Min: -3.9   Max: -0.6
Current: -3.49

-3.9
-0.6

During the past 13 years, the highest Beneish M-Score of Murphy Oil Corp was -0.60. The lowest was -3.90. And the median was -2.77.


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 * 1.0806+0.528 * 1.1001+0.404 * 2.9094+0.892 * 0.5539+0.115 * 0.8834
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.521+4.679 * -0.2867-0.327 * 1.211
=-3.49

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $523 Mil.
Revenue was 658.094 + 714.949 + 738.29 + 921.747 = $3,033 Mil.
Gross Profit was 523.623 + 516.858 + 491.758 + 689.326 = $2,222 Mil.
Total Current Assets was $1,448 Mil.
Total Assets was $11,494 Mil.
Property, Plant and Equipment(Net PPE) was $9,818 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,620 Mil.
Selling, General & Admin. Expense(SGA) was $307 Mil.
Total Current Liabilities was $1,675 Mil.
Long-Term Debt was $3,041 Mil.
Net Income was -587.132 + -1595.426 + -73.834 + -14.441 = $-2,271 Mil.
Non Operating Income was 2335.215 + -2380.384 + -27.104 + -86.401 = $-159 Mil.
Cash Flow from Operations was 86.841 + 381.317 + 181.367 + 533.844 = $1,183 Mil.
Accounts Receivable was $873 Mil.
Revenue was 1407.626 + 1433.037 + 1349.021 + 1286.4 = $5,476 Mil.
Gross Profit was 1215.169 + 1138.945 + 1034.263 + 1024.145 = $4,413 Mil.
Total Current Assets was $3,279 Mil.
Total Assets was $16,724 Mil.
Property, Plant and Equipment(Net PPE) was $13,331 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,906 Mil.
Selling, General & Admin. Expense(SGA) was $364 Mil.
Total Current Liabilities was $3,148 Mil.
Long-Term Debt was $2,518 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)
=(522.672 / 3033.08) / (873.277 / 5476.084)
=0.17232384 / 0.15947107
=1.0806

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)
=(516.858 / 5476.084) / (523.623 / 3033.08)
=0.80578055 / 0.73244524
=1.1001

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 - (1448.416 + 9818.365) / 11493.812) / (1 - (3279.149 + 13331.047) / 16723.738)
=0.01975245 / 0.00678927
=2.9094

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
=3033.08 / 5476.084
=0.5539

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))
=(1906.247 / (1906.247 + 13331.047)) / (1619.824 / (1619.824 + 9818.365))
=0.12510404 / 0.14161543
=0.8834

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)
=(306.663 / 3033.08) / (364.004 / 5476.084)
=0.10110614 / 0.06647159
=1.521

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)
=((3040.594 + 1674.629) / 11493.812) / ((2517.669 + 3147.887) / 16723.738)
=0.41024014 / 0.33877331
=1.211

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
=(-2270.833 - -158.674 - 1183.369) / 11493.812
=-0.2867

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 -3.49 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 0.9391.10770.48782.04790.81660.89121.15582.86520.85971.0806
GMI 1.24921.12420.79530.85151.17951.13540.8630.21490.93070.9746
AQI 1.47811.41961.00660.48020.89380.68881.50811.29250.22872.9094
SGI 1.22491.28881.49210.6911.22791.18851.03170.18831.0160.5539
DEPI 1.14131.07710.71690.9751.00881.06860.98850.92540.82590.8834
SGAI 1.17420.77850.67172.05140.69790.90721.14155.68050.94491.521
LVGI 0.96541.19690.75971.06010.98130.79971.48391.09040.96291.211
TATA -0.0417-0.091-0.1221-0.0869-0.1602-0.0876-0.1012-0.1392-0.1207-0.2857
M-score -2.21-2.33-3.09-2.69-3.08-2.79-2.83-3.28-3.51-3.55

Murphy Oil Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.24491.34080.86240.17820.08740.85970.54750.61830.63871.0806
GMI 2.74170.32590.53192.2066.48680.95261.00461.02721.07521.1001
AQI 0.44591.29252.2812.65941.03050.22870.20330.19332.23152.9094
SGI 3.45670.40240.69672.83717.99981.0160.94910.83310.69840.5539
DEPI 0.84620.85020.83860.82860.89650.82590.75660.78680.70540.8834
SGAI 0.39863.20041.94390.48850.14890.94490.97041.03531.24611.521
LVGI 1.24061.09041.13271.02821.12270.96290.85290.90151.0651.211
TATA -0.1244-0.1148-0.1143-0.1272-0.1244-0.1248-0.1309-0.1066-0.047-0.2867
M-score -0.86-3.90-3.37-0.835.35-3.51-3.85-3.79-2.86-3.49
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