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Noble Corp PLC (NYSE:NE)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

NE' s 10-Year Beneish M-Score Range
Min: -3.59   Max: 9.08
Current: -2.71

-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 * 0.4413+0.528 * 0.9741+0.404 * 1.142+0.892 * 1.597+0.115 * 0.8292
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.6167+4.679 * -0.0755-0.327 * 0.9664
=-2.71

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $610 Mil.
Revenue was 828.796 + 1240.363 + 1251.17 + 2421.236 = $5,742 Mil.
Gross Profit was 429.481 + 634.508 + 653.207 + 1169.344 = $2,887 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.
Net Income was 127.175 + 234.559 + 256.326 + 174.06 = $792 Mil.
Non Operating Income was 0 + 0 + -83.164 + 0 = $-83 Mil.
Cash Flow from Operations was 356.475 + 526.027 + 505.796 + 540.663 = $1,929 Mil.
Accounts Receivable was $866 Mil.
Revenue was 640.513 + 1017.385 + 970.975 + 966.367 = $3,595 Mil.
Gross Profit was 340.188 + 497.364 + 463.678 + 459.417 = $1,761 Mil.
Total Current Assets was $1,375 Mil.
Total Assets was $15,729 Mil.
Property, Plant and Equipment(Net PPE) was $14,072 Mil.
Depreciation, Depletion and Amortization(DDA) was $851 Mil.
Selling, General & Admin. Expense(SGA) was $111 Mil.
Total Current Liabilities was $985 Mil.
Long-Term Debt was $5,308 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)
=(610.134 / 5741.565) / (865.746 / 3595.24)
=0.10626615 / 0.2408034
=0.4413

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)
=(634.508 / 3595.24) / (429.481 / 5741.565)
=0.48971612 / 0.50274446
=0.9741

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 - (1031.045 + 12633.666) / 13950.197) / (1 - (1375.003 + 14072.457) / 15729.331)
=0.02046466 / 0.01792009
=1.142

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
=5741.565 / 3595.24
=1.597

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))
=(851.298 / (851.298 + 14072.457)) / (933.346 / (933.346 + 12633.666))
=0.05704315 / 0.06879525
=0.8292

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)
=(109.12 / 5741.565) / (110.797 / 3595.24)
=0.01900527 / 0.03081769
=0.6167

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)
=((4737.081 + 656.01) / 13950.197) / ((5307.838 + 984.586) / 15729.331)
=0.38659605 / 0.40004397
=0.9664

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
=(792.12 - -83.164 - 1928.961) / 13950.197
=-0.0755

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 -2.71 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 1.27221.04110.9711.05310.91410.95050.77611.57820.96261.069
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 -2.41-1.30-2.63-2.24-2.69-2.62-3.59-2.17-2.58-2.62

Noble Corp PLC Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 1.05151.02280.96260.94140.99861.01370.89640.68960.73710.4413
GMI 0.93980.97620.98020.94890.98260.93690.94320.94930.94190.9741
AQI 0.72480.5820.83690.46820.77340.75380.87610.81010.99811.142
SGI 1.29321.28711.31571.27641.2051.07911.42381.43281.44661.597
DEPI 1.00410.99890.93580.92690.94080.93390.96610.97260.94760.8292
SGAI 0.79860.77910.83170.88390.91161.09370.82880.80450.78720.6167
LVGI 1.12181.10041.04581.02991.09961.05531.07331.06030.98930.9664
TATA -0.0357-0.0478-0.0588-0.0588-0.0561-0.0521-0.0533-0.0628-0.0623-0.0755
M-score -2.49-2.60-2.58-2.80-2.69-2.82-2.53-2.77-2.61-2.71
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