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Noble Corp PLC (NYSE:NE)
Beneish M-Score
-3.26 (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 -3.26 suggests that the company is not a manipulator.

NE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.59   Max: 9.08
Current: -3.26

-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 -2.64.


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 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 * 1.1824+0.528 * 0.8889+0.404 * 0.7614+0.892 * 0.7352+0.115 * 1.3478
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1344+4.679 * -0.1215-0.327 * 1.0089
=-3.26

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $530 Mil.
Revenue was 896.671 + 793.555 + 804.342 + 804.74 = $3,299 Mil.
Gross Profit was 585.821 + 456.696 + 462.435 + 400.183 = $1,905 Mil.
Total Current Assets was $936 Mil.
Total Assets was $13,058 Mil.
Property, Plant and Equipment(Net PPE) was $11,919 Mil.
Depreciation, Depletion and Amortization(DDA) was $641 Mil.
Selling, General & Admin. Expense(SGA) was $91 Mil.
Total Current Liabilities was $904 Mil.
Long-Term Debt was $4,189 Mil.
Net Income was 325.807 + 159.031 + 178.403 + -609.569 = $54 Mil.
Non Operating Income was 0 + 0 + 0 + -1.298 = $-1 Mil.
Cash Flow from Operations was 484.347 + 399.296 + 368.582 + 389.91 = $1,642 Mil.
Accounts Receivable was $610 Mil.
Revenue was 828.796 + 1240.363 + 1251.17 + 1167.049 = $4,487 Mil.
Gross Profit was 429.481 + 634.508 + 653.207 + 586.098 = $2,303 Mil.
Total Current Assets was $1,031 Mil.
Total Assets was $13,950 Mil.
Property, Plant and Equipment(Net PPE) was $12,634 Mil.
Depreciation, Depletion and Amortization(DDA) was $933 Mil.
Selling, General & Admin. Expense(SGA) was $109 Mil.
Total Current Liabilities was $656 Mil.
Long-Term Debt was $4,737 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)
=(530.401 / 3299.308) / (610.134 / 4487.378)
=0.16076129 / 0.1359667
=1.1824

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)
=(456.696 / 4487.378) / (585.821 / 3299.308)
=0.51328281 / 0.57743472
=0.8889

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 - (935.877 + 11918.667) / 13058.018) / (1 - (1031.045 + 12633.666) / 13950.197)
=0.0155823 / 0.02046466
=0.7614

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
=3299.308 / 4487.378
=0.7352

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))
=(933.346 / (933.346 + 12633.666)) / (641.08 / (641.08 + 11918.667))
=0.06879525 / 0.05104243
=1.3478

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)
=(91.01 / 3299.308) / (109.12 / 4487.378)
=0.02758457 / 0.0243171
=1.1344

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)
=((4188.727 + 904.196) / 13058.018) / ((4737.081 + 656.01) / 13950.197)
=0.39002267 / 0.38659605
=1.0089

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
=(53.672 - -1.298 - 1642.135) / 13058.018
=-0.1215

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 -3.26 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 1.04110.9711.05310.91410.95050.77611.57820.96261.0690.7855
GMI 0.80660.78120.92950.92850.96561.26031.21910.98450.92720.9616
AQI 4.51440.1811.08940.82511.07710.91781.30630.47470.87611.1154
SGI 1.29631.51961.42621.15061.05640.7710.96031.31571.19380.7634
DEPI 0.94941.21081.07010.96911.02471.13710.9720.95320.96610.856
SGAI 0.92160.7561.30060.75071.02481.48661.03430.83170.98851.1853
LVGI 1.47310.75810.89020.93310.70142.15151.19571.04581.07331.0229
TATA -0.0628-0.0605-0.038-0.046-0.0546-0.0785-0.0288-0.0588-0.0567-0.1331
M-score -1.30-2.63-2.24-2.69-2.62-3.60-1.95-2.72-2.62-3.54

Noble Corp PLC Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.99860.90361.0690.81420.86410.63350.61550.83220.89031.1824
GMI 0.99080.94230.92720.92750.91630.94860.96530.9690.94880.8889
AQI 0.77340.75380.87610.81010.99811.1421.11541.25750.9470.7614
SGI 1.2051.21071.19381.21351.23411.11250.97420.81480.68210.7352
DEPI 0.94080.93390.96610.97260.94760.82920.8560.96961.10661.3478
SGAI 0.91160.97480.98850.94980.92270.88530.92881.09231.24451.1344
LVGI 1.09961.05531.07331.06030.98930.96641.02291.0281.01271.0089
TATA -0.0597-0.0557-0.0567-0.0628-0.0623-0.0755-0.1268-0.1299-0.1256-0.1215
M-score -2.70-2.79-2.62-2.88-2.72-3.03-3.43-3.35-3.53-3.26
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