RIG has been removed from your Stock Email Alerts list.
Please enter Portfolio Name for new portfolio.
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.
During the past 13 years, the highest Beneish M-Score of Transocean Ltd was 2.47. The lowest was -4.85. And the median was -2.52.
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 Transocean Ltd 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 * 0.7611||+||0.528 * 1.061||+||0.404 * 1.0859||+||0.892 * 0.6809||+||0.115 * 1.3664|
|-||0.172 * SGAI||+||4.679 * TATA||-||0.327 * LVGI|
|-||0.172 * 1.3534||+||4.679 * -0.0482||-||0.327 * 0.8212|
|This Year (Jun16) TTM:||Last Year (Jun15) TTM:|
|Accounts Receivable was $936 Mil.|
Revenue was 943 + 1341 + 1851 + 1608 = $5,743 Mil.
Gross Profit was 443 + 676 + 1057 + 728 = $2,904 Mil.
Total Current Assets was $4,129 Mil.
Total Assets was $25,839 Mil.
Property, Plant and Equipment(Net PPE) was $21,089 Mil.
Depreciation, Depletion and Amortization(DDA) was $857 Mil.
Selling, General & Admin. Expense(SGA) was $188 Mil.
Total Current Liabilities was $2,199 Mil.
Long-Term Debt was $7,155 Mil.
Net Income was 77 + 249 + 611 + 321 = $1,258 Mil.
Non Operating Income was 41 + -1 + 15 + 3 = $58 Mil.
Cash Flow from Operations was 207 + 631 + 960 + 648 = $2,446 Mil.
|Accounts Receivable was $1,806 Mil.
Revenue was 1884 + 2043 + 2237 + 2270 = $8,434 Mil.
Gross Profit was 1687 + 959 + 927 + 952 = $4,525 Mil.
Total Current Assets was $6,719 Mil.
Total Assets was $26,973 Mil.
Property, Plant and Equipment(Net PPE) was $19,657 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,108 Mil.
Selling, General & Admin. Expense(SGA) was $204 Mil.
Total Current Liabilities was $2,902 Mil.
Long-Term Debt was $8,989 Mil.
1. DSRI = Days Sales in Receivables Index
A large increase in DSR could be indicative of revenue inflation.
|DSRI||=||(Receivables_t / Revenue_t)||/||(Receivables_t-1 / Revenue_t-1)|
|=||(936 / 5743)||/||(1806 / 8434)|
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.
|=||(GrossProfit_t-1 / Revenue_t-1)||/||(GrossProfit_t / Revenue_t)|
|=||(4525 / 8434)||/||(2904 / 5743)|
3. AQI = Asset Quality Index
AQI is the ratio of asset quality in year t to year t-1.
|AQI||=||(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)||/||(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)|
|=||(1 - (4129 + 21089) / 25839)||/||(1 - (6719 + 19657) / 26973)|
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.
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))|
|=||(1108 / (1108 + 19657))||/||(857 / (857 + 21089))|
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)|
|=||(188 / 5743)||/||(204 / 8434)|
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)|
|=||((7155 + 2199) / 25839)||/||((8989 + 2902) / 26973)|
8. TATA = Total Accruals to Total Assets
Total accruals calculated as the change in working capital accounts other than cash less depreciation.
|=||(NetIncome_t - NonOperatingIncome_t||-||CashFlowsfromOperations_t)||/||TotalAssets_t|
|=||(1258 - 58||-||2446)||/||25839|
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.
Transocean Ltd has a M-score of -3.10 suggests that the company will not be a manipulator.
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
Transocean Ltd Annual Data
Transocean Ltd Quarterly Data