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Noble Corp PLC (NYSE:NE)
Beneish M-Score
-3.21 (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 -3.21 suggests that the company is not a manipulator.

NE' s 10-Year Beneish M-Score Range
Min: -3.59   Max: 9.08
Current: -3.21

-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 -2.62.


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 * 0.5859+0.528 * 0.9835+0.404 * 1.2575+0.892 * 1.1573+0.115 * 0.9696
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.769+4.679 * -0.1299-0.327 * 1.028
=-3.21

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $595 Mil.
Revenue was 804.342 + 804.74 + 828.796 + 1240.363 = $3,678 Mil.
Gross Profit was 462.435 + 400.183 + 429.481 + 634.508 = $1,927 Mil.
Total Current Assets was $862 Mil.
Total Assets was $13,158 Mil.
Property, Plant and Equipment(Net PPE) was $12,047 Mil.
Depreciation, Depletion and Amortization(DDA) was $772 Mil.
Selling, General & Admin. Expense(SGA) was $105 Mil.
Total Current Liabilities was $585 Mil.
Long-Term Debt was $4,862 Mil.
Net Income was 178.403 + -609.569 + 127.175 + 234.559 = $-69 Mil.
Non Operating Income was 0 + -1.298 + 0 + 0 = $-1 Mil.
Cash Flow from Operations was 368.582 + 389.91 + 356.475 + 526.027 = $1,641 Mil.
Accounts Receivable was $877 Mil.
Revenue was 795.187 + 725.089 + 640.513 + 1017.385 = $3,178 Mil.
Gross Profit was 420.803 + 378.791 + 340.188 + 497.364 = $1,637 Mil.
Total Current Assets was $1,372 Mil.
Total Assets was $16,444 Mil.
Property, Plant and Equipment(Net PPE) was $14,826 Mil.
Depreciation, Depletion and Amortization(DDA) was $919 Mil.
Selling, General & Admin. Expense(SGA) was $118 Mil.
Total Current Liabilities was $895 Mil.
Long-Term Debt was $5,729 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)
=(594.72 / 3678.241) / (877.127 / 3178.174)
=0.16168598 / 0.27598457
=0.5859

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)
=(400.183 / 3178.174) / (462.435 / 3678.241)
=0.51512158 / 0.52378487
=0.9835

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 - (862.363 + 12046.683) / 13157.973) / (1 - (1371.536 + 14825.569) / 16444.497)
=0.01891834 / 0.01504406
=1.2575

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
=3678.241 / 3178.174
=1.1573

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))
=(919.171 / (919.171 + 14825.569)) / (771.78 / (771.78 + 12046.683))
=0.05837956 / 0.06020847
=0.9696

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)
=(105.072 / 3678.241) / (118.064 / 3178.174)
=0.02856583 / 0.03714838
=0.769

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)
=((4862.361 + 585.423) / 13157.973) / ((5728.782 + 894.515) / 16444.497)
=0.41402912 / 0.40276677
=1.028

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
=(-69.432 - -1.298 - 1640.994) / 13157.973
=-0.1299

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 -3.21 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.04110.9711.05310.91410.95050.77611.57820.96261.78350.4708
GMI 0.80660.78120.92950.92850.96561.26031.21910.98020.89580.9996
AQI 4.51440.1811.08940.82511.07710.91780.74090.83690.87611.1154
SGI 1.29631.51961.42621.15061.05640.7710.96031.31570.71561.2736
DEPI 0.94941.21081.07010.96911.02471.13710.990.93580.96610.856
SGAI 0.92160.7561.30060.75071.02481.48661.03430.83171.64920.7105
LVGI 1.47310.75810.89020.93310.70142.15151.19571.04581.07331.0229
TATA -0.0628-0.0605-0.038-0.046-0.0546-0.0769-0.0274-0.0588-0.0567-0.1331
M-score -1.30-2.63-2.24-2.69-2.62-3.59-2.17-2.58-2.52-3.27

Noble Corp PLC Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.96260.94140.99861.01371.34961.15661.20350.70590.54810.5859
GMI 0.98020.94890.98260.93690.92120.91970.90950.94320.9750.9835
AQI 0.83690.46820.77340.75380.87610.81010.99811.1421.11541.2575
SGI 1.31571.27641.2051.07910.94560.85430.8860.99841.0941.1573
DEPI 0.93580.92690.94080.93390.96610.97260.94760.82920.8560.9696
SGAI 0.83170.88390.91161.09371.2481.34921.28530.98650.82720.769
LVGI 1.04581.02991.09961.05531.07331.06030.98930.96641.02291.028
TATA -0.0588-0.0588-0.0561-0.0521-0.0533-0.0679-0.0672-0.0815-0.1331-0.1299
M-score -2.58-2.80-2.69-2.82-2.62-2.99-2.81-3.11-3.40-3.21
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