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Tutor Perini Corp (NYSE:TPC)
Beneish M-Score
-2.22 (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 -2.22 suggests that the company is not a manipulator.

TPC' s 10-Year Beneish M-Score Range
Min: -5.75   Max: 4.06
Current: -2.22

-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 -2.40.


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 * 1.0794+0.528 * 0.9219+0.404 * 0.8296+0.892 * 1.0475+0.115 * 1.0089
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9868+4.679 * 0.055-0.327 * 1.0255
=-2.22

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
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.
Net Income was 35.73 + 28.545 + 15.939 + 33.259 = $113 Mil.
Non Operating Income was -0.441 + -6.974 + -3.373 + -5.026 = $-16 Mil.
Cash Flow from Operations was -81.99 + -20.305 + -41.13 + 61.786 = $-82 Mil.
Accounts Receivable was $1,398 Mil.
Revenue was 1030.388 + 1053.065 + 992.928 + 1114.198 = $4,191 Mil.
Gross Profit was 120.857 + 105.955 + 100.357 + 126.449 = $454 Mil.
Total Current Assets was $2,170 Mil.
Total Assets was $3,479 Mil.
Property, Plant and Equipment(Net PPE) was $493 Mil.
Depreciation, Depletion and Amortization(DDA) was $57 Mil.
Selling, General & Admin. Expense(SGA) was $259 Mil.
Total Current Liabilities was $1,349 Mil.
Long-Term Debt was $670 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)
=(1580.594 / 4389.723) / (1397.857 / 4190.579)
=0.36006691 / 0.33357133
=1.0794

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)
=(129.531 / 4190.579) / (140.841 / 4389.723)
=0.10824709 / 0.1174229
=0.9219

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 - (2562.256 + 526.981) / 3835.52) / (1 - (2169.637 + 493.326) / 3478.947)
=0.19457153 / 0.23454913
=0.8296

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
=4389.723 / 4190.579
=1.0475

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))
=(56.547 / (56.547 + 493.326)) / (59.809 / (59.809 + 526.981))
=0.10283647 / 0.10192573
=1.0089

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)
=(267.985 / 4389.723) / (259.247 / 4190.579)
=0.06104827 / 0.06186424
=0.9868

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)
=((880.121 + 1402.032) / 3835.52) / ((669.71 + 1348.86) / 3478.947)
=0.59500485 / 0.58022442
=1.0255

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
=(113.473 - -15.814 - -81.639) / 3835.52
=0.055

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 -2.22 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.80190.76180.86811.07661.13721.09751.03820.96121.06911.0794
GMI 1.0921.03311.05361.01940.95260.93010.9030.89810.88550.9219
AQI 0.80850.77850.77590.74660.95730.96410.95150.93780.88650.8296
SGI 1.46381.251.10631.04441.01931.01911.01560.98710.97881.0475
DEPI 0.6230.62970.78590.93381.09681.13831.05521.04080.99141.0089
SGAI 1.04331.12011.03690.96980.94640.94510.99491.04161.03350.9868
LVGI 1.15221.03981.04031.08440.96390.95860.97740.98210.98511.0255
TATA -0.0999-0.1068-0.0594-0.03590.0560.04640.01620.00440.0270.055
M-score -2.85-3.12-2.89-2.66-2.08-2.17-2.41-2.58-2.42-2.22
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