Ocean Rig UDW (Ocean Rig UDW) Beneish M-Score : 0.00 (As of May. 05, 2024)

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What is Ocean Rig UDW Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

The historical rank and industry rank for Ocean Rig UDW's Beneish M-Score or its related term are showing as below:

During the past 8 years, the highest Beneish M-Score of Ocean Rig UDW was 0.00. The lowest was 0.00. And the median was 0.00.

Ocean Rig UDW Beneish M-Score Historical Data

The historical data trend for Ocean Rig UDW's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Ocean Rig UDW Beneish M-Score Chart

Ocean Rig UDW Annual Data

Trend

Dec10

Dec11

Dec12

Dec13

Dec14

Dec15

Dec16

Dec17

Beneish M-Score

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-2.29

-2.21

-2.77

-3.44

-2.95

Ocean Rig UDW Quarterly Data
	Dec13	Mar14	Jun14	Sep14	Dec14	Mar15	Jun15	Sep15	Dec15	Mar16	Jun16	Sep16	Dec16	Mar17	Jun17	Sep17	Dec17	Mar18	Jun18	Sep18
Beneish M-Score	Get a 7-Day Free Trial															-2.88	-2.95	-	-	-

Competitive Comparison of Ocean Rig UDW's Beneish M-Score

For the Oil & Gas Drilling subindustry, Ocean Rig UDW's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ocean Rig UDW's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Ocean Rig UDW's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Ocean Rig UDW's Beneish M-Score falls into.

Ocean Rig UDW Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Ocean Rig UDW for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0393

0.528 * 1.095

0.404 * 1.7731

0.892 * 0.5103

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.657

4.679 * -0.05465

0.327 * 0.6738

-2.78

This Year (Sep18) TTM:

Last Year (Sep17) TTM:

Total Receivables was $70.5 Mil.
Revenue was 74.071 + 97.349 + 194.144 + 219.352 = $584.9 Mil.
Gross Profit was -5.736 + 10.575 + 91.377 + 244.868 = $341.1 Mil.
Total Current Assets was $768.7 Mil.
Total Assets was $2,628.8 Mil.
Property, Plant and Equipment(Net PPE) was $1,844.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $0.0 Mil.
Selling, General, & Admin. Expense(SGA) was $71.8 Mil.
Total Current Liabilities was $60.0 Mil.
Long-Term Debt & Capital Lease Obligation was $350.0 Mil.
Net Income was -31.544 + -19.088 + 54.85 + 79.417 = $83.6 Mil.
Non Operating Income was -1.247 + -5.21 + -3.228 + 3.693 = $-6.0 Mil.
Cash Flow from Operations was -3.854 + 54.192 + 106.73 + 76.221 = $233.3 Mil.

Total Receivables was $132.8 Mil.
Revenue was 200.851 + 284.503 + 302.814 + 358.061 = $1,146.2 Mil.
Gross Profit was 89.043 + 182.585 + 195.889 + 264.406 = $731.9 Mil.
Total Current Assets was $898.6 Mil.
Total Assets was $2,785.6 Mil.
Property, Plant and Equipment(Net PPE) was $1,877.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $82.3 Mil.
Selling, General, & Admin. Expense(SGA) was $85.0 Mil.
Total Current Liabilities was $194.8 Mil.
Long-Term Debt & Capital Lease Obligation was $450.0 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total 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)
	=	(70.455 / 584.916)	/	(132.848 / 1146.229)
	=	0.120453	/	0.1159
	=	1.0393

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)
	=	(731.923 / 1146.229)	/	(341.084 / 584.916)
	=	0.638549	/	0.583133
	=	1.095

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 Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (768.676 + 1844.253) / 2628.75)	/	(1 - (898.587 + 1877.537) / 2785.578)
	=	0.006018	/	0.003394
	=	1.7731

4. SGI = Sales Growth Index

Ratio of Revenue 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
	=	584.916	/	1146.229
	=	0.5103

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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))
	=	(82.287 / (82.287 + 1877.537))	/	(0 / (0 + 1844.253))
	=	0.041987	/	0
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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)
	=	(71.835 / 584.916)	/	(84.954 / 1146.229)
	=	0.122813	/	0.074116
	=	1.657

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 in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((350 + 59.974) / 2628.75)	/	((450 + 194.781) / 2785.578)
	=	0.155958	/	0.231471
	=	0.6738

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
	=	(83.635 - -5.992	-	233.289)	/	2628.75
	=	-0.05465

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Ocean Rig UDW has a M-score of -2.78 suggests that the company is unlikely to be a manipulator.

Ocean Rig UDW Beneish M-Score Related Terms

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Ocean Rig UDW (Ocean Rig UDW) Business Description

Industry

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Address

Website

http://www.ocean-rig.com

Ocean Rig UDW Inc is an international offshore drilling contractor. It provides oilfield services for offshore oil and gas exploration, development and production drilling and specializing in the ultra-deepwater and harsh-environment segment of the offshore drilling industry. The company employs drilling units primarily on a day rate basis for periods of between two months and six years to drill wells for its customers, typically major oil companies, integrated oil and gas companies, state-owned national oil companies and independent oil and gas companies.