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Tutor Perini Corp (NYSE:TPC)
Beneish M-Score
-2.41 (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.

Tutor Perini Corp has a M-score of -2.41 suggests that the company is not a manipulator.

TPC' s 10-Year Beneish M-Score Range
Min: -5.09   Max: 2.78
Current: -2.41

-5.09
2.78

During the past 13 years, the highest Beneish M-Score of Tutor Perini Corp was 2.78. The lowest was -5.09. And the median was -2.40.


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 Tutor Perini Corp 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 * 1.0382+0.528 * 0.903+0.404 * 0.9515+0.892 * 1.0156+0.115 * 1.0552
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9949+4.679 * 0.0162-0.327 * 0.9774
=-2.41

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $1,291 Mil.
Revenue was 1099.291 + 1030.388 + 1053.065 + 992.928 = $4,176 Mil.
Gross Profit was 139.735 + 120.857 + 105.955 + 100.357 = $467 Mil.
Total Current Assets was $2,086 Mil.
Total Assets was $3,397 Mil.
Property, Plant and Equipment(Net PPE) was $498 Mil.
Depreciation, Depletion and Amortization(DDA) was $59 Mil.
Selling, General & Admin. Expense(SGA) was $263 Mil.
Total Current Liabilities was $1,298 Mil.
Long-Term Debt was $619 Mil.
Net Income was 33.259 + 23.759 + 15.478 + 14.8 = $87 Mil.
Non Operating Income was -5.026 + -9.488 + -3.234 + -0.827 = $-19 Mil.
Cash Flow from Operations was 61.786 + 27.512 + 45.885 + -84.455 = $51 Mil.
Accounts Receivable was $1,225 Mil.
Revenue was 1114.198 + 1099.393 + 985.346 + 912.534 = $4,111 Mil.
Gross Profit was 126.449 + 115.463 + 87.061 + 86.159 = $415 Mil.
Total Current Assets was $1,982 Mil.
Total Assets was $3,296 Mil.
Property, Plant and Equipment(Net PPE) was $485 Mil.
Depreciation, Depletion and Amortization(DDA) was $61 Mil.
Selling, General & Admin. Expense(SGA) was $260 Mil.
Total Current Liabilities was $1,234 Mil.
Long-Term Debt was $669 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)
=(1291.246 / 4175.672) / (1224.613 / 4111.471)
=0.30923071 / 0.29785276
=1.0382

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)
=(120.857 / 4111.471) / (139.735 / 4175.672)
=0.10096922 / 0.1118153
=0.903

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 - (2085.92 + 498.125) / 3397.438) / (1 - (1981.847 + 485.095) / 3296.41)
=0.23941364 / 0.25162768
=0.9515

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
=4175.672 / 4111.471
=1.0156

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))
=(61.457 / (61.457 + 485.095)) / (59.41 / (59.41 + 498.125))
=0.11244493 / 0.10655833
=1.0552

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)
=(263.082 / 4175.672) / (260.369 / 4111.471)
=0.06300351 / 0.06332746
=0.9949

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)
=((619.226 + 1298.486) / 3397.438) / ((669.38 + 1234.27) / 3296.41)
=0.56445828 / 0.57749188
=0.9774

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
=(87.296 - -18.575 - 50.728) / 3397.438
=0.0162

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.

Tutor Perini Corp has a M-score of -2.41 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.

Tutor Perini Corp Annual Data

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.84791.52870.89640.75691.15960.86771.3031.24640.86811.0382
GMI 1.02221.39830.63991.03520.91340.78160.71320.99271.05360.903
AQI 1.08720.89910.71030.694713.77681.11951.01311.05320.77590.9515
SGI 1.34070.94091.75531.52111.2230.91020.6211.16161.10631.0156
DEPI 0.74772.690.7961.02951.32730.77951.24940.90050.78591.0552
SGAI 0.80751.52450.90890.72011.01531.44721.51031.18031.03690.9949
LVGI 0.92641.12951.01490.98090.75470.87080.97581.14931.04030.9774
TATA -0.0316-0.0298-0.0652-0.1124-0.06860.05740.02890.0314-0.05940.0162
M-score -2.39-1.95-2.53-2.812.78-2.54-2.60-2.04-2.89-2.41

Tutor Perini Corp Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 1.27811.24640.95510.80190.76180.86811.07661.13721.09751.0382
GMI 0.94520.99271.05271.0921.03311.05361.01940.95260.93010.903
AQI 1.01061.05321.00990.80850.77850.77590.74660.95730.96410.9515
SGI 0.91541.16161.36081.46381.251.10631.04441.01931.01911.0156
DEPI 1.12510.90050.76270.6230.62970.78590.93381.09681.13831.0552
SGAI 1.23081.18031.10641.04331.12011.03690.96980.94640.94510.9949
LVGI 1.26321.14931.11831.15221.03981.04031.08440.96390.95860.9774
TATA 0.03720.03140.024-0.0999-0.1068-0.0594-0.03590.0560.04640.0162
M-score -2.26-2.04-2.14-2.85-3.12-2.89-2.66-2.08-2.17-2.41
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