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Unit Corp (NYSE:UNT)
Beneish M-Score
-6.29 (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.

Unit Corp has a M-score of -6.29 suggests that the company is not a manipulator.

UNT' s Beneish M-Score Range Over the Past 10 Years
Min: -8.1   Max: 14.85
Current: -6.29

-8.1
14.85

During the past 13 years, the highest Beneish M-Score of Unit Corp was 14.85. The lowest was -8.10. And the median was -2.91.


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 Unit 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 * 0.7755+0.528 * -0.1615+0.404 * 1.5798+0.892 * 0.5431+0.115 * 0.7383
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5487+4.679 * -0.5379-0.327 * 1.539
=-6.29

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $79.9 Mil.
Revenue was 172.292 + 212.393 + 214.447 + 255.099 = $854.2 Mil.
Gross Profit was -492.636 + -314.409 + -419.666 + 113.967 = $-1,112.7 Mil.
Total Current Assets was $140.3 Mil.
Total Assets was $2,808.5 Mil.
Property, Plant and Equipment(Net PPE) was $2,581.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $354.8 Mil.
Selling, General & Admin. Expense(SGA) was $35.3 Mil.
Total Current Liabilities was $150.9 Mil.
Long-Term Debt was $927.7 Mil.
Net Income was -309.337 + -205.281 + -274.389 + -248.354 = $-1,037.4 Mil.
Non Operating Income was 13.435 + 8.266 + -1.895 + 6.584 = $26.4 Mil.
Cash Flow from Operations was 65.462 + 123.876 + 97.297 + 160.309 = $446.9 Mil.
Accounts Receivable was $189.8 Mil.
Revenue was 378.551 + 400.974 + 405.431 + 387.988 = $1,572.9 Mil.
Gross Profit was -89.796 + 103.983 + 113.973 + 202.809 = $331.0 Mil.
Total Current Assets was $252.5 Mil.
Total Assets was $4,473.7 Mil.
Property, Plant and Equipment(Net PPE) was $4,133.4 Mil.
Depreciation, Depletion and Amortization(DDA) was $404.9 Mil.
Selling, General & Admin. Expense(SGA) was $42.0 Mil.
Total Current Liabilities was $304.2 Mil.
Long-Term Debt was $812.2 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)
=(79.941 / 854.231) / (189.812 / 1572.944)
=0.09358242 / 0.12067308
=0.7755

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)
=(-314.409 / 1572.944) / (-492.636 / 854.231)
=0.21041372 / -1.30262657
=-0.1615

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 - (140.258 + 2581.127) / 2808.509) / (1 - (252.491 + 4133.391) / 4473.728)
=0.03102144 / 0.01963597
=1.5798

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
=854.231 / 1572.944
=0.5431

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))
=(404.943 / (404.943 + 4133.391)) / (354.83 / (354.83 + 2581.127))
=0.08922724 / 0.12085667
=0.7383

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)
=(35.345 / 854.231) / (42.023 / 1572.944)
=0.0413764 / 0.02671615
=1.5487

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)
=((927.662 + 150.891) / 2808.509) / ((812.163 + 304.171) / 4473.728)
=0.38403046 / 0.24953104
=1.539

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
=(-1037.361 - 26.39 - 446.944) / 2808.509
=-0.5379

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.

Unit Corp has a M-score of -6.29 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.

Unit Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.76440.79811.02950.73961.42660.91570.81130.93111.1670.7755
GMI 0.90121.06180.9592-6.4411-0.30720.99264.37350.26051.656-0.0818
AQI 1.20970.88040.87231.0730.78280.86610.88940.92880.90091.5798
SGI 1.31250.99691.1720.52271.22651.38691.08911.02791.16350.5431
DEPI 0.9121.0440.92961.23781.0270.90491.03551.02090.92250.7383
SGAI 0.99281.18270.98421.80710.8880.82871.01081.12680.94241.5487
LVGI 0.82040.70391.21770.39551.91581.35511.55950.90041.12871.539
TATA -0.1038-0.1444-0.2121-0.245-0.0954-0.1271-0.1772-0.1196-0.1347-0.5379
M-score -2.82-3.29-3.44-8.10-3.39-2.96-1.85-3.48-2.55-6.25

Unit Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 0.88530.93111.1320.99811.07881.1670.70450.72620.82570.7755
GMI 1.37340.40470.3570.61430.56691.4861.9475-1.4084-0.4937-0.1615
AQI 0.94870.92880.92590.84550.86380.90091.01711.1841.35211.5798
SGI 0.9971.02791.09361.13261.17311.16351.01320.84040.68260.5431
DEPI 0.99321.02090.98940.9560.96120.92250.82990.77530.75310.7383
SGAI 1.18911.12681.03370.98460.91790.94241.0491.20691.38551.5487
LVGI 0.95470.90040.90790.9671.04031.12871.21921.35551.43121.539
TATA -0.1536-0.1196-0.0962-0.1022-0.108-0.1347-0.2394-0.3313-0.4152-0.5379
M-score -3.15-3.41-3.07-3.10-3.05-2.64-3.45-5.80-5.75-6.29
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