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GuruFocus has detected 5 Warning Signs with Tutor Perini Corp $TPC.
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Tutor Perini Corp (NYSE:TPC)
Beneish M-Score
-2.51 (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 -2.51 suggests that the company is not a manipulator.

TPC' s Beneish M-Score Range Over the Past 10 Years
Min: -3.39   Max: 2.78
Current: -2.51

-3.39
2.78

During the past 13 years, the highest Beneish M-Score of Tutor Perini Corp was 2.78. The lowest was -3.39. And the median was -2.35.


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 * 1.1705+0.528 * 0.7876+0.404 * 0.9488+0.892 * 1.0107+0.115 * 0.5965
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0069+4.679 * -0.0061-0.327 * 0.9627
=-2.51

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

This Year (Dec16) TTM:Last Year (Dec15) TTM:
Accounts Receivable was $1,743 Mil.
Revenue was 1246.599 + 1332.978 + 1308.13 + 1085.369 = $4,973 Mil.
Gross Profit was 117.66 + 124.668 + 109.77 + 105.092 = $457 Mil.
Total Current Assets was $2,838 Mil.
Total Assets was $4,039 Mil.
Property, Plant and Equipment(Net PPE) was $478 Mil.
Depreciation, Depletion and Amortization(DDA) was $67 Mil.
Selling, General & Admin. Expense(SGA) was $255 Mil.
Total Current Liabilities was $1,519 Mil.
Long-Term Debt was $674 Mil.
Net Income was 30.261 + 28.801 + 21.361 + 15.4 = $96 Mil.
Non Operating Income was 1.763 + 2.048 + 2.485 + 0.682 = $7 Mil.
Cash Flow from Operations was 19.17 + 89.59 + -11.368 + 15.944 = $113 Mil.
Accounts Receivable was $1,474 Mil.
Revenue was 1200.83 + 1340.739 + 1312.438 + 1066.465 = $4,920 Mil.
Gross Profit was 66.673 + 100.201 + 98.62 + 90.759 = $356 Mil.
Total Current Assets was $2,609 Mil.
Total Assets was $3,861 Mil.
Property, Plant and Equipment(Net PPE) was $524 Mil.
Depreciation, Depletion and Amortization(DDA) was $42 Mil.
Selling, General & Admin. Expense(SGA) was $251 Mil.
Total Current Liabilities was $1,449 Mil.
Long-Term Debt was $729 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)
=(1743.3 / 4973.076) / (1473.615 / 4920.472)
=0.35054763 / 0.29948651
=1.1705

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)
=(356.253 / 4920.472) / (457.19 / 4973.076)
=0.0724022 / 0.09193304
=0.7876

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 - (2837.756 + 477.626) / 4038.62) / (1 - (2608.939 + 523.525) / 3861.3)
=0.17908048 / 0.18875405
=0.9488

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
=4973.076 / 4920.472
=1.0107

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))
=(41.634 / (41.634 + 523.525)) / (67.302 / (67.302 + 477.626))
=0.07366776 / 0.12350622
=0.5965

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)
=(255.27 / 4973.076) / (250.84 / 4920.472)
=0.0513304 / 0.05097885
=1.0069

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)
=((673.629 + 1518.943) / 4038.62) / ((728.767 + 1448.819) / 3861.3)
=0.54290129 / 0.56395152
=0.9627

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
=(95.823 - 6.978 - 113.336) / 4038.62
=-0.0061

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 -2.51 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 local exchange's currency.

Tutor Perini Corp Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.75691.15960.86771.3031.24640.86811.03821.0650.90931.1705
GMI 1.03520.91340.78160.71320.99271.05360.9030.99381.5540.7876
AQI 0.694713.77681.11951.01311.05320.77590.95150.85580.92120.9488
SGI 1.52111.2230.91020.6211.16161.10631.01561.07581.09531.0107
DEPI 1.02951.32730.77951.24940.90050.78591.05521.15351.2540.5965
SGAI 0.72011.01531.44721.51031.18031.03690.99490.93190.86831.0069
LVGI 0.98090.75470.87080.97581.14931.04030.97741.0060.99320.9627
TATA -0.1208-0.06860.05740.02890.0314-0.05940.01620.04580.0046-0.0061
M-score -2.852.78-2.54-2.60-2.04-2.89-2.41-2.17-2.14-2.51

Tutor Perini Corp Quarterly Data

Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16
DSRI 1.07941.0650.99190.9220.87520.90931.08011.09611.10691.1705
GMI 0.92190.99381.06951.24831.37821.5541.42121.23071.03350.7876
AQI 0.82960.85580.89350.9280.98780.92121.03991.09911.08310.9488
SGI 1.04751.07581.11251.15881.12111.09531.0731.02141.00121.0107
DEPI 1.00891.15351.20651.3841.37661.2541.07520.82530.70290.5965
SGAI 0.98680.93190.9260.90930.88190.86830.84440.85090.90791.0069
LVGI 1.02551.0060.98171.00140.96930.99320.97760.93150.93910.9627
TATA 0.0550.04580.0320.0268-0.0130.00460.0021-0.0005-0.0062-0.0061
M-score -2.22-2.17-2.20-2.12-2.28-2.14-2.05-2.19-2.36-2.51
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