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Tutor Perini Corp (NYSE:TPC)
Beneish M-Score
-2.29 (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 -2.29 suggests that the company is not a manipulator.

TPC' s Beneish M-Score Range Over the Past 10 Years
Min: -5.75   Max: 4.06
Current: -2.29

-5.75
4.06

During the past 13 years, the highest Beneish M-Score of Tutor Perini Corp was 4.06. The lowest was -5.75. And the median was -2.34.


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 * 0.8752+0.528 * 1.3782+0.404 * 0.9878+0.892 * 1.1211+0.115 * 1.271
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8819+4.679 * -0.0125-0.327 * 0.9693
=-2.29

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $1,551 Mil.
Revenue was 1340.739 + 1312.438 + 1066.465 + 1201.877 = $4,922 Mil.
Gross Profit was 100.201 + 98.62 + 90.759 + 129.723 = $419 Mil.
Total Current Assets was $2,676 Mil.
Total Assets was $3,970 Mil.
Property, Plant and Equipment(Net PPE) was $531 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $265 Mil.
Total Current Liabilities was $1,543 Mil.
Long-Term Debt was $746 Mil.
Net Income was 19.677 + 11.777 + 5.126 + 27.722 = $64 Mil.
Non Operating Income was 5.916 + 0.1 + -0.754 + 1.252 = $7 Mil.
Cash Flow from Operations was 52.432 + -29.434 + -2.324 + 86.747 = $107 Mil.
Accounts Receivable was $1,581 Mil.
Revenue was 1250.689 + 1084.51 + 955.233 + 1099.291 = $4,390 Mil.
Gross Profit was 140.841 + 129.531 + 105.347 + 139.735 = $515 Mil.
Total Current Assets was $2,562 Mil.
Total Assets was $3,836 Mil.
Property, Plant and Equipment(Net PPE) was $527 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $268 Mil.
Total Current Liabilities was $1,402 Mil.
Long-Term Debt was $880 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)
=(1550.865 / 4921.519) / (1580.594 / 4389.723)
=0.31511917 / 0.36006691
=0.8752

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)
=(98.62 / 4389.723) / (100.201 / 4921.519)
=0.1174229 / 0.08519788
=1.3782

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 - (2675.747 + 531.438) / 3970.255) / (1 - (2562.256 + 526.981) / 3835.52)
=0.19219672 / 0.19457153
=0.9878

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
=4921.519 / 4389.723
=1.1211

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))
=(59.809 / (59.809 + 526.981)) / (46.335 / (46.335 + 531.438))
=0.10192573 / 0.08019586
=1.271

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)
=(264.968 / 4921.519) / (267.985 / 4389.723)
=0.05383866 / 0.06104827
=0.8819

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)
=((746.283 + 1543.443) / 3970.255) / ((880.121 + 1402.032) / 3835.52)
=0.57672014 / 0.59500485
=0.9693

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
=(64.302 - 6.514 - 107.421) / 3970.255
=-0.0125

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 -2.29 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.52870.89640.75691.15960.86771.3031.24640.86811.03821.065
GMI 1.39830.63991.03520.91340.78160.71320.99271.05360.9030.9938
AQI 0.89910.71030.694713.77681.11951.01311.05320.77590.95150.8558
SGI 0.94091.75531.52111.2230.91020.6211.16161.10631.01561.0758
DEPI 2.690.7961.02951.32730.77951.24940.90050.78591.05521.111
SGAI 1.52450.90890.72011.01531.44721.51031.18031.03690.99490.9319
LVGI 1.12951.01490.98090.75470.87080.97581.14931.04030.97741.006
TATA -0.0298-0.0652-0.1124-0.06860.05740.02890.0314-0.05940.01620.0462
M-score -1.95-2.53-2.812.78-2.54-2.60-2.04-2.89-2.41-2.18

Tutor Perini Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 1.13721.09751.03820.96121.06911.07941.0650.99190.9220.8752
GMI 0.95260.93010.9030.89810.88550.92190.99381.06951.24831.3782
AQI 0.95730.96410.95150.93780.88650.82960.85580.89350.9280.9878
SGI 1.01931.01911.01560.98710.97881.04751.07581.11251.15881.1211
DEPI 1.09681.13831.05521.04080.99141.00891.1111.15841.29441.271
SGAI 0.94640.94510.99491.04161.03350.98680.93190.9260.90930.8819
LVGI 0.96390.95860.97740.98210.98511.02551.0060.98171.00140.9693
TATA 0.0560.04640.01620.00440.0270.0550.04620.03240.0272-0.0125
M-score -2.08-2.17-2.41-2.58-2.42-2.22-2.18-2.20-2.13-2.29
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