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Noble Corp PLC (NYSE:NE)
Beneish M-Score
-3.28 (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 -3.28 suggests that the company is not a manipulator.

NE' s 10-Year Beneish M-Score Range
Min: -3.59   Max: -1.31
Current: -3.28

-3.59
-1.31

During the past 13 years, the highest Beneish M-Score of Noble Corp PLC was -1.31. 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 * 0.4875+0.528 * 0.9759+0.404 * 1.1154+0.892 * 1.2299+0.115 * 0.856
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7357+4.679 * -0.1268-0.327 * 1.0229
=-3.28

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $569 Mil.
Revenue was 804.74 + 828.796 + 1240.363 + 1251.17 = $4,125 Mil.
Gross Profit was 400.183 + 429.481 + 634.508 + 653.207 = $2,117 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.
Net Income was -609.569 + 127.175 + 234.559 + 256.326 = $8 Mil.
Non Operating Income was -1.298 + 0 + 0 + -83.164 = $-84 Mil.
Cash Flow from Operations was 389.91 + 356.475 + 526.027 + 505.796 = $1,778 Mil.
Accounts Receivable was $949 Mil.
Revenue was 725.089 + 640.513 + 1017.385 + 970.975 = $3,354 Mil.
Gross Profit was 378.791 + 340.188 + 497.364 + 463.678 = $1,680 Mil.
Total Current Assets was $1,391 Mil.
Total Assets was $16,218 Mil.
Property, Plant and Equipment(Net PPE) was $14,558 Mil.
Depreciation, Depletion and Amortization(DDA) was $879 Mil.
Selling, General & Admin. Expense(SGA) was $118 Mil.
Total Current Liabilities was $1,052 Mil.
Long-Term Debt was $5,556 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)
=(569.096 / 4125.069) / (949.069 / 3353.962)
=0.13796036 / 0.28296951
=0.4875

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)
=(429.481 / 3353.962) / (400.183 / 4125.069)
=0.50090639 / 0.51329541
=0.9759

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 - (928.562 + 12112.509) / 13286.822) / (1 - (1390.935 + 14558.09) / 16217.957)
=0.01849584 / 0.01658236
=1.1154

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
=4125.069 / 3353.962
=1.2299

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))
=(879.422 / (879.422 + 14558.09)) / (863.547 / (863.547 + 12112.509))
=0.05696656 / 0.06654927
=0.856

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)
=(106.771 / 4125.069) / (117.996 / 3353.962)
=0.02588345 / 0.03518108
=0.7357

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)
=((4869.02 + 668.674) / 13286.822) / ((5556.251 + 1051.915) / 16217.957)
=0.41678093 / 0.40745983
=1.0229

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
=(8.491 - -84.462 - 1778.208) / 13286.822
=-0.1268

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 -3.28 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.02280.96260.94140.99861.01371.34961.01141.06130.62630.4875
GMI 0.97620.98020.94890.98260.93690.92120.92090.9120.94520.9759
AQI 0.5820.83690.46820.77340.75380.87610.81010.99811.1421.1154
SGI 1.28711.31571.27641.2051.07910.94560.97681.00481.12521.2299
DEPI 0.99890.93580.92690.94080.93390.96610.97260.94760.82920.856
SGAI 0.77910.83170.88390.91161.09371.2481.17991.13330.87530.7357
LVGI 1.10041.04581.02991.09961.05531.07331.06030.98930.96641.0229
TATA -0.0478-0.0588-0.0588-0.0561-0.0521-0.0533-0.0628-0.0623-0.0755-0.1268
M-score -2.60-2.58-2.80-2.69-2.82-2.62-2.96-2.78-3.02-3.28
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