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Noble Corp PLC (NYSE:NE)
Beneish M-Score
-3.14 (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 -3.14 suggests that the company is not a manipulator.

NE' s Beneish M-Score Range Over the Past 10 Years
Min: -3.59   Max: -1.28
Current: -3.14

-3.59
-1.28

During the past 13 years, the highest Beneish M-Score of Noble Corp PLC was -1.28. 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 * 0.8454+0.528 * 0.8428+0.404 * 0.7035+0.892 * 1.037+0.115 * 1.2714
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.694+4.679 * -0.0971-0.327 * 0.9403
=-3.14

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $499 Mil.
Revenue was 857.684 + 896.671 + 793.555 + 804.342 = $3,352 Mil.
Gross Profit was 544.495 + 585.821 + 456.696 + 462.435 = $2,049 Mil.
Total Current Assets was $1,241 Mil.
Total Assets was $12,892 Mil.
Property, Plant and Equipment(Net PPE) was $11,484 Mil.
Depreciation, Depletion and Amortization(DDA) was $634 Mil.
Selling, General & Admin. Expense(SGA) was $77 Mil.
Total Current Liabilities was $864 Mil.
Long-Term Debt was $4,189 Mil.
Net Income was -152.241 + 325.807 + 159.031 + 178.403 = $511 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 510.126 + 484.347 + 399.296 + 368.582 = $1,762 Mil.
Accounts Receivable was $569 Mil.
Revenue was 804.74 + 828.796 + 803.781 + 795.187 = $3,233 Mil.
Gross Profit was 400.183 + 429.481 + 415.147 + 420.803 = $1,666 Mil.
Total Current Assets was $929 Mil.
Total Assets was $13,287 Mil.
Property, Plant and Equipment(Net PPE) was $12,113 Mil.
Depreciation, Depletion and Amortization(DDA) was $864 Mil.
Selling, General & Admin. Expense(SGA) was $107 Mil.
Total Current Liabilities was $669 Mil.
Long-Term Debt was $4,869 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)
=(498.931 / 3352.252) / (569.096 / 3232.504)
=0.14883457 / 0.17605423
=0.8454

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)
=(585.821 / 3232.504) / (544.495 / 3352.252)
=0.51527051 / 0.61136424
=0.8428

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 - (1240.618 + 11483.623) / 12891.984) / (1 - (928.562 + 12112.509) / 13286.822)
=0.01301142 / 0.01849584
=0.7035

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
=3352.252 / 3232.504
=1.037

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))
=(863.547 / (863.547 + 12112.509)) / (634.305 / (634.305 + 11483.623))
=0.06654927 / 0.05234434
=1.2714

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)
=(76.843 / 3352.252) / (106.771 / 3232.504)
=0.0229228 / 0.03303043
=0.694

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)
=((4188.904 + 863.657) / 12891.984) / ((4869.02 + 668.674) / 13286.822)
=0.39191493 / 0.41678093
=0.9403

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
=(511 - 0 - 1762.351) / 12891.984
=-0.0971

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 -3.14 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 -0.0582-0.0374-0.046-0.0546-0.0785-0.0274-0.0588-0.0567-0.1331-0.0971
M-score -2.62-2.23-2.69-2.62-3.60-2.17-2.58-2.62-3.54-3.14

Noble Corp PLC Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.62060.83740.7380.89650.50270.62220.66480.55710.83070.8454
GMI 0.80811.04591.04571.02321.08870.97210.97810.96920.90310.8428
AQI 0.75380.87610.81010.99811.1421.11541.25750.9470.76140.7035
SGI 0.6751.5241.33881.18941.40190.96381.021.091.04651.037
DEPI 0.93390.96610.97260.94760.82920.8560.96961.10661.34781.2714
SGAI 1.74840.77430.86090.95740.70250.93890.87250.77880.7970.694
LVGI 1.05531.07331.06030.98930.96641.02291.0281.01271.00890.9403
TATA -0.0521-0.0533-0.0679-0.0672-0.0815-0.1332-0.13-0.1257-0.1216-0.0971
M-score -2.80-2.43-2.79-2.70-2.81-3.46-3.28-3.39-3.24-3.14
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