Switch to:
Noble Corp PLC (NYSE:NE)
Beneish M-Score
-3.51 (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 -3.51 suggests that the company is not a manipulator.

NE' s 10-Year Beneish M-Score Range
Min: -3.6   Max: 9.08
Current: -3.51

-3.6
9.08

During the past 13 years, the highest Beneish M-Score of Noble Corp PLC was 9.08. The lowest was -3.60. 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 * 0.7225+0.528 * 0.952+0.404 * 0.947+0.892 * 0.8404+0.115 * 1.1066
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.01+4.679 * -0.1256-0.327 * 1.0127
=-3.51

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $540 Mil.
Revenue was 793.555 + 804.342 + 804.74 + 828.796 = $3,231 Mil.
Gross Profit was 456.696 + 462.435 + 400.183 + 429.481 = $1,749 Mil.
Total Current Assets was $1,010 Mil.
Total Assets was $13,205 Mil.
Property, Plant and Equipment(Net PPE) was $11,970 Mil.
Depreciation, Depletion and Amortization(DDA) was $677 Mil.
Selling, General & Admin. Expense(SGA) was $100 Mil.
Total Current Liabilities was $954 Mil.
Long-Term Debt was $4,489 Mil.
Net Income was 159.031 + 178.403 + -609.569 + 127.175 = $-145 Mil.
Non Operating Income was 0 + 0 + -1.298 + 0 = $-1 Mil.
Cash Flow from Operations was 399.296 + 368.582 + 389.91 + 356.475 = $1,514 Mil.
Accounts Receivable was $890 Mil.
Revenue was 803.781 + 795.187 + 1167.049 + 1078.881 = $3,845 Mil.
Gross Profit was 415.147 + 420.803 + 586.098 + 558.807 = $1,981 Mil.
Total Current Assets was $1,412 Mil.
Total Assets was $16,990 Mil.
Property, Plant and Equipment(Net PPE) was $15,274 Mil.
Depreciation, Depletion and Amortization(DDA) was $961 Mil.
Selling, General & Admin. Expense(SGA) was $118 Mil.
Total Current Liabilities was $901 Mil.
Long-Term Debt was $6,014 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)
=(540.423 / 3231.433) / (889.942 / 3844.898)
=0.16723943 / 0.2314605
=0.7225

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)
=(462.435 / 3844.898) / (456.696 / 3231.433)
=0.51519052 / 0.5411825
=0.952

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 - (1010.304 + 11970.445) / 13204.716) / (1 - (1412.076 + 15273.529) / 16989.9)
=0.01696114 / 0.01791035
=0.947

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
=3231.433 / 3844.898
=0.8404

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))
=(960.976 / (960.976 + 15273.529)) / (676.509 / (676.509 + 11970.445))
=0.05919343 / 0.05349185
=1.1066

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)
=(100.416 / 3231.433) / (118.294 / 3844.898)
=0.03107476 / 0.03076649
=1.01

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)
=((4488.541 + 953.894) / 13204.716) / ((6013.946 + 900.814) / 16989.9)
=0.41215843 / 0.40699239
=1.0127

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
=(-144.96 - -1.298 - 1514.263) / 13204.716
=-0.1256

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 -3.51 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

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.94140.99860.90361.0690.90571.06460.79080.78550.84890.7225
GMI 0.95490.99080.94230.92720.92790.91320.94540.96160.96330.952
AQI 0.46820.77340.75380.87610.81010.99811.1421.11541.25750.947
SGI 1.27641.2051.21071.19381.09091.00160.89120.76340.79870.8404
DEPI 0.92690.94080.93390.96610.97260.94760.82920.8560.96961.1066
SGAI 0.88390.91160.97480.98851.05651.13691.10511.18531.11421.01
LVGI 1.02991.09961.05531.07331.06030.98930.96641.02291.0281.0127
TATA -0.0623-0.0597-0.0557-0.0567-0.0679-0.0672-0.0815-0.1331-0.1299-0.1256
M-score -2.82-2.70-2.79-2.62-2.95-2.81-3.15-3.54-3.35-3.51
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GuruFocus Premium Plus Membership

FEEDBACK