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Unit Corp (NYSE:UNT)
Beneish M-Score
-4.87 (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 -4.87 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: -4.87

-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 -2.92.


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 * 1.1832+0.528 * 0.4509+0.404 * 1.2558+0.892 * 0.5277+0.115 * 1.0747
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5542+4.679 * -0.3761-0.327 * 1.3155
=-4.87

* 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 $67.5 Mil.
Revenue was 138.305 + 136.184 + 172.292 + 212.393 = $659.2 Mil.
Gross Profit was -73.796 + -49.641 + -492.636 + -314.409 = $-930.5 Mil.
Total Current Assets was $89.3 Mil.
Total Assets was $2,552.1 Mil.
Property, Plant and Equipment(Net PPE) was $2,385.8 Mil.
Depreciation, Depletion and Amortization(DDA) was $267.8 Mil.
Selling, General & Admin. Expense(SGA) was $33.4 Mil.
Total Current Liabilities was $146.8 Mil.
Long-Term Debt was $875.1 Mil.
Net Income was -72.136 + -41.149 + -309.337 + -205.281 = $-627.9 Mil.
Non Operating Income was -22.671 + 10.914 + 13.435 + 8.266 = $9.9 Mil.
Cash Flow from Operations was 62.003 + 70.713 + 65.462 + 123.876 = $322.1 Mil.
Accounts Receivable was $108.1 Mil.
Revenue was 214.447 + 255.099 + 378.551 + 400.974 = $1,249.1 Mil.
Gross Profit was -419.666 + -389.451 + -89.796 + 103.983 = $-794.9 Mil.
Total Current Assets was $166.5 Mil.
Total Assets was $3,630.0 Mil.
Property, Plant and Equipment(Net PPE) was $3,376.3 Mil.
Depreciation, Depletion and Amortization(DDA) was $410.7 Mil.
Selling, General & Admin. Expense(SGA) was $40.8 Mil.
Total Current Liabilities was $177.9 Mil.
Long-Term Debt was $926.9 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)
=(67.506 / 659.174) / (108.109 / 1249.071)
=0.10240999 / 0.08655153
=1.1832

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)
=(-794.93 / 1249.071) / (-930.482 / 659.174)
=-0.63641699 / -1.41158784
=0.4509

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 - (89.294 + 2385.846) / 2552.096) / (1 - (166.534 + 3376.296) / 3629.993)
=0.03015404 / 0.02401189
=1.2558

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
=659.174 / 1249.071
=0.5277

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))
=(410.706 / (410.706 + 3376.296)) / (267.776 / (267.776 + 2385.846))
=0.10845149 / 0.10090962
=1.0747

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)
=(33.448 / 659.174) / (40.78 / 1249.071)
=0.05074229 / 0.03264826
=1.5542

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)
=((875.051 + 146.757) / 2552.096) / ((926.908 + 177.9) / 3629.993)
=0.40037992 / 0.30435541
=1.3155

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
=(-627.903 - 9.944 - 322.054) / 2552.096
=-0.3761

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 -4.87 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

Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16
DSRI 1.1320.99811.07881.1670.70450.72620.82570.77550.99931.1832
GMI 0.21860.53280.47321.656-1.4647-0.4238-0.2396-0.08180.10450.4509
AQI 0.92590.84550.86380.90091.01711.1841.35211.57981.3591.2558
SGI 1.09361.13261.17311.16351.01320.84040.68260.54310.51060.5277
DEPI 0.98940.9560.96120.92250.82990.77530.75310.73830.90811.0747
SGAI 1.03370.98460.91790.94241.0491.20691.38551.54871.6271.5542
LVGI 0.90790.9671.04031.12871.21921.35551.43121.5391.43821.3155
TATA -0.0962-0.1022-0.108-0.1347-0.2394-0.3313-0.4152-0.5379-0.4544-0.3761
M-score -3.14-3.14-3.10-2.55-5.25-5.28-5.61-6.25-5.63-4.87
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