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Noble Corp PLC (NYSE:NE)
Beneish M-Score
-3.22 (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 -3.22 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: -3.22

-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 -2.63.


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 * 0.8729+0.528 * 0.8615+0.404 * 0.489+0.892 * 0.9748+0.115 * 1.1487
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7073+4.679 * -0.0908-0.327 * 0.8907
=-3.22

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $506 Mil.
Revenue was 611.973 + 857.684 + 896.671 + 793.555 = $3,160 Mil.
Gross Profit was 344.719 + 544.495 + 585.821 + 456.696 = $1,932 Mil.
Total Current Assets was $952 Mil.
Total Assets was $12,455 Mil.
Property, Plant and Equipment(Net PPE) was $11,388 Mil.
Depreciation, Depletion and Amortization(DDA) was $630 Mil.
Selling, General & Admin. Expense(SGA) was $72 Mil.
Total Current Liabilities was $729 Mil.
Long-Term Debt was $3,864 Mil.
Net Income was 105.485 + -152.241 + 325.807 + 159.031 = $438 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 174.801 + 510.126 + 484.347 + 399.296 = $1,569 Mil.
Accounts Receivable was $595 Mil.
Revenue was 804.342 + 804.74 + 828.796 + 803.781 = $3,242 Mil.
Gross Profit was 462.435 + 400.183 + 429.481 + 415.147 = $1,707 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.



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)
=(506.017 / 3159.883) / (594.72 / 3241.659)
=0.16013789 / 0.18346162
=0.8729

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)
=(1707.246 / 3241.659) / (1931.731 / 3159.883)
=0.52665811 / 0.61132991
=0.8615

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 - (952.019 + 11387.676) / 12454.912) / (1 - (862.363 + 12046.683) / 13157.973)
=0.00925073 / 0.01891834
=0.489

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
=3159.883 / 3241.659
=0.9748

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))
=(771.78 / (771.78 + 12046.683)) / (629.886 / (629.886 + 11387.676))
=0.06020847 / 0.05241379
=1.1487

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)
=(72.445 / 3159.883) / (105.072 / 3241.659)
=0.02292648 / 0.03241303
=0.7073

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)
=((3864.06 + 728.952) / 12454.912) / ((4862.361 + 585.423) / 13157.973)
=0.36877113 / 0.41402912
=0.8907

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
=(438.082 - 0 - 1568.57) / 12454.912
=-0.0908

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 -3.22 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.9711.05310.91410.95050.77611.57820.96261.0690.78550.8454
GMI 0.78120.92950.92850.96561.26031.21910.98450.92720.96160.8428
AQI 0.1811.08940.82511.07710.91780.74090.83690.87611.11540.7035
SGI 1.51961.42621.15061.05640.7710.96031.31571.19380.76341.037
DEPI 1.21081.07010.96911.02471.13710.990.93580.96610.8561.2714
SGAI 0.7561.30060.75071.02481.48661.03430.83170.98851.18530.694
LVGI 0.75810.89020.93310.70142.15151.19571.04581.07331.02290.9403
TATA -0.0582-0.0374-0.046-0.0546-0.0785-0.0288-0.0588-0.0567-0.1331-0.0971
M-score -2.62-2.23-2.69-2.62-3.60-2.18-2.58-2.62-3.54-3.14

Noble Corp PLC Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.83740.7380.89650.50270.62220.66480.55710.83070.84540.8729
GMI 1.04591.04571.02321.08870.97210.97810.96920.90310.84280.8615
AQI 0.87610.81010.99811.1421.11541.25750.9470.76140.70350.489
SGI 1.5241.33881.18941.40190.96381.021.091.04651.0370.9748
DEPI 0.96610.97260.94760.82920.8560.96961.10661.34781.27141.1487
SGAI 0.77430.86090.95740.70250.93890.87250.77880.7970.6940.7073
LVGI 1.07331.06030.98930.96641.02291.0281.01271.00890.94030.8907
TATA -0.0533-0.0679-0.0672-0.0815-0.1332-0.13-0.1257-0.1216-0.0971-0.0908
M-score -2.43-2.79-2.70-2.81-3.46-3.28-3.39-3.24-3.14-3.22
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