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Tutor Perini Corp (NYSE:TPC)
Beneish M-Score
-2.18 (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 -2.18 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: -2.18

-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 -2.31.


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 * 1.0961+0.528 * 1.2307+0.404 * 1.0991+0.892 * 1.0214+0.115 * 0.8336
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8509+4.679 * -0.0004-0.327 * 0.9315
=-2.18

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

This Year (Jun16) TTM:Last Year (Jun15) TTM:
Accounts Receivable was $1,739 Mil.
Revenue was 1308.13 + 1085.369 + 1200.83 + 1340.739 = $4,935 Mil.
Gross Profit was 109.77 + 105.092 + 66.673 + 100.201 = $382 Mil.
Total Current Assets was $2,790 Mil.
Total Assets was $4,196 Mil.
Property, Plant and Equipment(Net PPE) was $507 Mil.
Depreciation, Depletion and Amortization(DDA) was $53 Mil.
Selling, General & Admin. Expense(SGA) was $238 Mil.
Total Current Liabilities was $1,585 Mil.
Long-Term Debt was $680 Mil.
Net Income was 21.361 + 15.4 + 8.712 + 19.677 = $65 Mil.
Non Operating Income was 2.485 + 0.682 + 7.192 + 5.916 = $16 Mil.
Cash Flow from Operations was -11.368 + 15.944 + -6.602 + 52.432 = $50 Mil.
Accounts Receivable was $1,554 Mil.
Revenue was 1312.438 + 1066.465 + 1201.877 + 1250.689 = $4,831 Mil.
Gross Profit was 98.62 + 90.759 + 129.723 + 140.841 = $460 Mil.
Total Current Assets was $2,638 Mil.
Total Assets was $3,944 Mil.
Property, Plant and Equipment(Net PPE) was $538 Mil.
Depreciation, Depletion and Amortization(DDA) was $46 Mil.
Selling, General & Admin. Expense(SGA) was $274 Mil.
Total Current Liabilities was $1,479 Mil.
Long-Term Debt was $807 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)
=(1739.343 / 4935.068) / (1553.514 / 4831.469)
=0.3524456 / 0.32154072
=1.0961

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)
=(459.943 / 4831.469) / (381.736 / 4935.068)
=0.09519734 / 0.07735172
=1.2307

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 - (2789.881 + 507.395) / 4195.585) / (1 - (2637.599 + 537.833) / 3943.636)
=0.21410816 / 0.19479587
=1.0991

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
=4935.068 / 4831.469
=1.0214

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))
=(46.283 / (46.283 + 537.833)) / (53.296 / (53.296 + 507.395))
=0.07923597 / 0.09505414
=0.8336

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)
=(238.337 / 4935.068) / (274.228 / 4831.469)
=0.04829457 / 0.05675872
=0.8509

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)
=((680.265 + 1584.889) / 4195.585) / ((806.652 + 1478.929) / 3943.636)
=0.53988991 / 0.57956186
=0.9315

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
=(65.15 - 16.275 - 50.406) / 4195.585
=-0.0004

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 -2.18 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

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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 0.96121.06911.07941.0650.99190.9220.87520.90931.08011.0961
GMI 0.89810.88550.92190.99381.06951.24831.37821.5541.42121.2307
AQI 0.93780.88650.82960.85580.89350.9280.98781.06681.03991.0991
SGI 0.98710.97881.04751.07581.11251.15881.12111.09531.0731.0214
DEPI 1.04080.99141.00891.1111.15841.32131.2711.24421.07460.8336
SGAI 1.04161.03350.98680.93190.9260.90930.88190.86830.84440.8509
LVGI 0.98210.98511.02551.0060.98171.00140.96930.9620.97760.9315
TATA 0.00440.0270.0550.04620.03240.0271-0.01260.00460.0022-0.0004
M-score -2.58-2.42-2.22-2.18-2.20-2.13-2.29-2.07-2.05-2.18
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