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Tutor Perini Corp (NYSE:TPC)
Beneish M-Score
-2.35 (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 -2.07 signals that the company is a manipulator.

TPC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.96   Max: 4.05
Current: -2.35

-3.96
4.05

During the past 13 years, the highest Beneish M-Score of Tutor Perini Corp was 4.05. The lowest was -3.96. And the median was -2.32.


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 * 0.9093+0.528 * 1.554+0.404 * 1.0668+0.892 * 1.0953+0.115 * 1.2442
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8683+4.679 * 0.0046-0.327 * 0.962
=-2.07

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $1,474 Mil.
Revenue was $4,920 Mil.
Gross Profit was $356 Mil.
Total Current Assets was $2,635 Mil.
Total Assets was $4,042 Mil.
Property, Plant and Equipment(Net PPE) was $524 Mil.
Depreciation, Depletion and Amortization(DDA) was $44 Mil.
Selling, General & Admin. Expense(SGA) was $251 Mil.
Total Current Liabilities was $1,474 Mil.
Long-Term Debt was $735 Mil.
Net Income was $45 Mil.
Non Operating Income was $12 Mil.
Cash Flow from Operations was $14 Mil.
Accounts Receivable was $1,480 Mil.
Revenue was $4,492 Mil.
Gross Profit was $505 Mil.
Total Current Assets was $2,473 Mil.
Total Assets was $3,773 Mil.
Property, Plant and Equipment(Net PPE) was $528 Mil.
Depreciation, Depletion and Amortization(DDA) was $56 Mil.
Selling, General & Admin. Expense(SGA) was $264 Mil.
Total Current Liabilities was $1,359 Mil.
Long-Term Debt was $784 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)
=(1473.615 / 4920.472) / (1479.504 / 4492.309)
=0.29948651 / 0.32934155
=0.9093

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)
=(505.442 / 4492.309) / (356.253 / 4920.472)
=0.11251274 / 0.0724022
=1.554

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 - (2635.245 + 523.525) / 4042.441) / (1 - (2472.556 + 527.602) / 3773.315)
=0.21859837 / 0.20490126
=1.0668

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
=4920.472 / 4492.309
=1.0953

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))
=(55.972 / (55.972 + 527.602)) / (43.729 / (43.729 + 523.525))
=0.09591243 / 0.07708892
=1.2442

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)
=(250.84 / 4920.472) / (263.752 / 4492.309)
=0.05097885 / 0.0587119
=0.8683

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)
=((734.531 + 1473.708) / 4042.441) / ((784.067 + 1358.576) / 3773.315)
=0.54626375 / 0.56784101
=0.962

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
=(45.292 - 12.453 - 14.072) / 4042.441
=0.0046

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 -2.07 signals that the company is likely to 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 local exchange's currency.

Tutor Perini Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.89640.75691.15960.86771.3031.24640.86811.03821.0650.9093
GMI 0.63991.03520.91340.78160.71320.99271.05360.9030.99381.554
AQI 0.71030.694713.77681.11951.01311.05320.77590.95150.85581.0668
SGI 1.75531.52111.2230.91020.6211.16161.10631.01561.07581.0953
DEPI 0.7961.02951.32730.77951.24940.90050.78591.05521.1111.2442
SGAI 0.90890.72011.01531.44721.51031.18031.03690.99490.93190.8683
LVGI 1.01490.98090.75470.87080.97581.14931.04030.97741.0060.962
TATA -0.0652-0.1208-0.06860.05740.02890.0314-0.05940.01620.04620.0046
M-score -2.53-2.852.78-2.54-2.60-2.04-2.89-2.41-2.18-2.07
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