NBR has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Nabors Industries Ltd was -1.54. The lowest was -3.86. And the median was -2.64.
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 Nabors Industries Ltd 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 * 1.2239||+||0.528 * 1.1343||+||0.404 * 0.8602||+||0.892 * 0.5293||+||0.115 * 0.9934|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.3259||+||4.679 * -0.1245||-||0.327 * 1.0997|
|This Year (Dec16) TTM:||Last Year (Dec15) TTM:|
|Accounts Receivable was $508 Mil.|
Revenue was 539.212 + 520.041 + 517.092 + 430.763 = $2,007 Mil.
Gross Profit was 207.652 + 213.605 + 175.813 + 65.74 = $663 Mil.
Total Current Assets was $1,156 Mil.
Total Assets was $8,187 Mil.
Property, Plant and Equipment(Net PPE) was $6,268 Mil.
Depreciation, Depletion and Amortization(DDA) was $876 Mil.
Selling, General & Admin. Expense(SGA) was $228 Mil.
Total Current Liabilities was $822 Mil.
Long-Term Debt was $3,578 Mil.
Net Income was -335.587 + -111.211 + -184.65 + -398.294 = $-1,030 Mil.
Non Operating Income was -275.27 + -10.392 + -74.607 + -182.404 = $-543 Mil.
Cash Flow from Operations was 127.137 + 68.096 + 175.166 + 161.506 = $532 Mil.
|Accounts Receivable was $785 Mil.
Revenue was 693.685 + 812.431 + 863.37 + 1422.178 = $3,792 Mil.
Gross Profit was 248.555 + 294.257 + 374.848 + 502.568 = $1,420 Mil.
Total Current Assets was $1,476 Mil.
Total Assets was $9,538 Mil.
Property, Plant and Equipment(Net PPE) was $7,028 Mil.
Depreciation, Depletion and Amortization(DDA) was $975 Mil.
Selling, General & Admin. Expense(SGA) was $324 Mil.
Total Current Liabilities was $1,006 Mil.
Long-Term Debt was $3,655 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(508.355 / 2007.108)||/||(784.671 / 3791.664)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(1420.228 / 3791.664)||/||(662.81 / 2007.108)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (1155.839 + 6267.583) / 8187.015)||/||(1 - (1475.897 + 7027.802) / 9537.84)|
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.
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))|
|=||(975.287 / (975.287 + 7027.802))||/||(876.37 / (876.37 + 6267.583))|
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)|
|=||(227.639 / 2007.108)||/||(324.328 / 3791.664)|
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)|
|=||((3578.335 + 821.934) / 8187.015)||/||((3655.2 + 1006.499) / 9537.84)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(-1029.742 - -542.673||-||531.905)||/||8187.015|
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.
Nabors Industries Ltd has a M-score of -3.35 suggests that the company will not be a manipulator.
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
Nabors Industries Ltd Annual Data
Nabors Industries Ltd Quarterly Data