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Noble Corp PLC (NYSE:NE)
Beneish M-Score
-2.73 (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.

Noble Corp PLC has a M-score of -2.73 suggests that the company is not a manipulator.

NE' s 10-Year Beneish M-Score Range
Min: -3.59   Max: 9.08
Current: -2.73

-3.59
9.08

During the past 13 years, the highest Beneish M-Score of Noble Corp PLC was 9.08. The lowest was -3.59. And the median was -2.61.


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 Noble Corp PLC 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 * 0.856+0.528 * 0.924+0.404 * 0.9981+0.892 * 1.2341+0.115 * 0.9476
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9227+4.679 * -0.0623-0.327 * 0.9893
=-2.73

* 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 $1,038 Mil.
Revenue was 1240.363 + 1251.17 + 1167.049 + 1078.881 = $4,737 Mil.
Gross Profit was 634.508 + 653.207 + 586.098 + 558.807 = $2,433 Mil.
Total Current Assets was $1,412 Mil.
Total Assets was $16,990 Mil.
Property, Plant and Equipment(Net PPE) was $15,274 Mil.
Depreciation, Depletion and Amortization(DDA) was $961 Mil.
Selling, General & Admin. Expense(SGA) was $118 Mil.
Total Current Liabilities was $901 Mil.
Long-Term Debt was $6,014 Mil.
Net Income was 234.559 + 256.326 + 174.06 + 281.957 = $947 Mil.
Non Operating Income was 0 + -83.164 + 0 + 0 = $-83 Mil.
Cash Flow from Operations was 526.027 + 505.796 + 540.663 + 515.589 = $2,088 Mil.
Accounts Receivable was $983 Mil.
Revenue was 1017.385 + 970.975 + 966.367 + 884.032 = $3,839 Mil.
Gross Profit was 497.364 + 463.678 + 459.417 + 400.869 = $1,821 Mil.
Total Current Assets was $1,344 Mil.
Total Assets was $15,466 Mil.
Property, Plant and Equipment(Net PPE) was $13,844 Mil.
Depreciation, Depletion and Amortization(DDA) was $823 Mil.
Selling, General & Admin. Expense(SGA) was $104 Mil.
Total Current Liabilities was $1,087 Mil.
Long-Term Debt was $5,276 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)
=(1038.287 / 4737.463) / (982.857 / 3838.759)
=0.21916519 / 0.25603509
=0.856

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)
=(653.207 / 3838.759) / (634.508 / 4737.463)
=0.4744575 / 0.5134858
=0.924

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 - (1412.076 + 15273.529) / 16989.9) / (1 - (1344.226 + 13844.336) / 15466.086)
=0.01791035 / 0.01794404
=0.9981

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
=4737.463 / 3838.759
=1.2341

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))
=(822.674 / (822.674 + 13844.336)) / (960.976 / (960.976 + 15273.529))
=0.0560901 / 0.05919343
=0.9476

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)
=(118.294 / 4737.463) / (103.879 / 3838.759)
=0.0249699 / 0.02706057
=0.9227

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)
=((6013.946 + 900.814) / 16989.9) / ((5276.304 + 1086.59) / 15466.086)
=0.40699239 / 0.41140945
=0.9893

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
=(946.902 - -83.164 - 2088.075) / 16989.9
=-0.0623

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.

Noble Corp PLC has a M-score of -2.73 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.

Noble Corp PLC Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.27221.23510.92710.98890.87730.9310.77611.78050.98221.0659
GMI 1.08910.80660.78120.92950.92850.96561.26031.21910.98020.9313
AQI 0.94564.51440.1811.08940.82511.07710.91780.74090.83690.8761
SGI 1.07991.29631.51961.42621.15061.05640.7710.96031.31571.1938
DEPI 0.9180.94941.21081.07010.96911.02471.13710.990.93580.9661
SGAI 1.17220.92160.7561.30060.75071.02481.48661.03430.83170.9885
LVGI 0.88021.47310.75810.89020.93310.70142.15151.19571.04581.0733
TATA -0.059-0.0628-0.0605-0.038-0.046-0.0546-0.0769-0.0274-0.0588-0.0567
M-score -2.41-1.12-2.67-2.30-2.72-2.64-3.59-1.99-2.56-2.62

Noble Corp PLC Quarterly Data

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 1.63371.03581.07360.98220.94251.03060.91621.06590.83180.856
GMI 1.07850.93980.97620.98020.94890.98260.9350.92780.93180.924
AQI 1.2960.72480.5820.83690.46820.77340.75380.87610.81010.9981
SGI 1.14511.29321.28711.31571.27641.2051.21071.19381.21351.2341
DEPI 1.00351.00410.99890.93580.92690.94080.93390.96610.97260.9476
SGAI 0.84570.79860.77910.83170.88390.91160.97480.98850.94980.9227
LVGI 1.16611.12181.10041.04581.02991.09961.05531.07331.06030.9893
TATA -0.0228-0.0357-0.0478-0.0588-0.0588-0.0561-0.0521-0.0533-0.0628-0.0623
M-score -1.74-2.50-2.56-2.56-2.80-2.66-2.77-2.61-2.87-2.73
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