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Tutor Perini Corp (NYSE:TPC)
Beneish M-Score
-2.21 (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 -2.20 signals that the company is a manipulator.

TPC' s 10-Year Beneish M-Score Range
Min: -5.75   Max: 4.06
Current: -2.21

-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 -2.37.


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 * 0.9919+0.528 * 1.0695+0.404 * 0.8935+0.892 * 1.1125+0.115 * 1.1584
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.926+4.679 * 0.0324-0.327 * 0.9817
=-2.20

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $1,394 Mil.
Revenue was 1066.465 + 1201.877 + 1250.689 + 1084.51 = $4,604 Mil.
Gross Profit was 90.759 + 129.723 + 140.841 + 129.531 = $491 Mil.
Total Current Assets was $2,472 Mil.
Total Assets was $3,766 Mil.
Property, Plant and Equipment(Net PPE) was $524 Mil.
Depreciation, Depletion and Amortization(DDA) was $52 Mil.
Selling, General & Admin. Expense(SGA) was $271 Mil.
Total Current Liabilities was $1,329 Mil.
Long-Term Debt was $796 Mil.
Net Income was 5.126 + 27.722 + 35.73 + 28.545 = $97 Mil.
Non Operating Income was -0.754 + 1.252 + -0.441 + -6.974 = $-7 Mil.
Cash Flow from Operations was -2.324 + 86.747 + -81.99 + -20.305 = $-18 Mil.
Accounts Receivable was $1,263 Mil.
Revenue was 955.233 + 1099.291 + 1030.388 + 1053.065 = $4,138 Mil.
Gross Profit was 105.347 + 139.735 + 120.857 + 105.955 = $472 Mil.
Total Current Assets was $2,201 Mil.
Total Assets was $3,525 Mil.
Property, Plant and Equipment(Net PPE) was $517 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $263 Mil.
Total Current Liabilities was $1,328 Mil.
Long-Term Debt was $698 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)
=(1394.12 / 4603.541) / (1263.39 / 4137.977)
=0.30283645 / 0.30531586
=0.9919

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)
=(129.723 / 4137.977) / (90.759 / 4603.541)
=0.11403978 / 0.10662531
=1.0695

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 - (2472.01 + 523.622) / 3766.48) / (1 - (2201.199 + 516.683) / 3525.349)
=0.20466005 / 0.22904598
=0.8935

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
=4603.541 / 4137.977
=1.1125

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))
=(60.276 / (60.276 + 516.683)) / (51.907 / (51.907 + 523.622))
=0.10447189 / 0.09019007
=1.1584

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)
=(270.577 / 4603.541) / (262.654 / 4137.977)
=0.05877584 / 0.06347401
=0.926

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)
=((795.742 + 1328.749) / 3766.48) / ((697.823 + 1327.689) / 3525.349)
=0.56405211 / 0.57455645
=0.9817

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
=(97.123 - -6.917 - -17.872) / 3766.48
=0.0324

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 -2.20 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 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.86811.07661.13721.09751.03820.96121.06911.07941.0650.9919
GMI 1.05361.01940.95260.93010.9030.89810.88550.92190.99381.0695
AQI 0.77590.74660.95730.96410.95150.93780.88650.82960.85580.8935
SGI 1.10631.04441.01931.01911.01560.98710.97881.04751.07581.1125
DEPI 0.78590.93381.09681.13831.05521.04080.99141.00891.1111.1584
SGAI 1.03690.96980.94640.94510.99491.04161.03350.98680.93190.926
LVGI 1.04031.08440.96390.95860.97740.98210.98511.02551.0060.9817
TATA -0.0594-0.03590.0560.04640.01620.00440.0270.0550.04620.0324
M-score -2.89-2.66-2.08-2.17-2.41-2.58-2.42-2.22-2.18-2.20
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