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GuruFocus has detected 6 Warning Signs with Tutor Perini Corp $TPC.
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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 -2.35 suggests that the company is not 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 * 1.1069+0.528 * 1.0335+0.404 * 1.0831+0.892 * 1.0012+0.115 * 0.7145
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9079+4.679 * -0.0059-0.327 * 0.9391
=-2.35

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

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $1,719 Mil.
Revenue was 1332.978 + 1308.13 + 1085.369 + 1200.83 = $4,927 Mil.
Gross Profit was 124.668 + 109.77 + 105.092 + 66.673 = $406 Mil.
Total Current Assets was $2,850 Mil.
Total Assets was $4,221 Mil.
Property, Plant and Equipment(Net PPE) was $492 Mil.
Depreciation, Depletion and Amortization(DDA) was $60 Mil.
Selling, General & Admin. Expense(SGA) was $241 Mil.
Total Current Liabilities was $1,602 Mil.
Long-Term Debt was $684 Mil.
Net Income was 28.801 + 21.361 + 15.4 + 8.712 = $74 Mil.
Non Operating Income was 2.048 + 2.485 + 0.682 + 6.355 = $12 Mil.
Cash Flow from Operations was 89.59 + -11.368 + 15.944 + -6.602 = $88 Mil.
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 $45 Mil.
Selling, General & Admin. Expense(SGA) was $265 Mil.
Total Current Liabilities was $1,543 Mil.
Long-Term Debt was $746 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)
=(1718.685 / 4927.307) / (1550.865 / 4921.519)
=0.34880818 / 0.31511917
=1.1069

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)
=(419.303 / 4921.519) / (406.203 / 4927.307)
=0.08519788 / 0.08243915
=1.0335

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 - (2849.937 + 492.328) / 4220.966) / (1 - (2675.747 + 531.438) / 3970.255)
=0.20817533 / 0.19219672
=1.0831

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
=4927.307 / 4921.519
=1.0012

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))
=(44.766 / (44.766 + 531.438)) / (60.065 / (60.065 + 492.328))
=0.07769123 / 0.10873599
=0.7145

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)
=(240.859 / 4927.307) / (264.968 / 4921.519)
=0.04888248 / 0.05383866
=0.9079

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)
=((684.202 + 1601.943) / 4220.966) / ((746.283 + 1543.443) / 3970.255)
=0.54161654 / 0.57672014
=0.9391

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
=(74.274 - 11.57 - 87.564) / 4220.966
=-0.0059

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 -2.35 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

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

Tutor Perini Corp Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 1.06911.07941.0650.99190.9220.87520.90931.08011.09611.1069
GMI 0.88550.92190.99381.06951.24831.37821.5541.42121.23071.0335
AQI 0.88650.82960.85580.89350.9280.98781.06681.03991.09911.0831
SGI 0.97881.04751.07581.11251.15881.12111.09531.0731.02141.0012
DEPI 0.99141.00891.1111.15841.32131.31191.24421.07460.83360.7145
SGAI 1.03350.98680.93190.9260.90930.88190.86830.84440.85090.9079
LVGI 0.98511.02551.0060.98171.00140.96930.9620.97760.93150.9391
TATA 0.0270.0550.04620.03240.0271-0.01260.00470.0023-0.0002-0.0059
M-score -2.42-2.22-2.18-2.20-2.13-2.28-2.07-2.05-2.18-2.35
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