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Unit Corp (NYSE:UNT)
Beneish M-Score
-4.88 (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 -4.88 suggests that the company is not a manipulator.

UNT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.88   Max: 14.85
Current: -4.88

-4.88
14.85

During the past 13 years, the highest Beneish M-Score of Unit Corp was 14.85. The lowest was -4.88. And the median was -2.85.


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 * 0.8257+0.528 * 1.1467+0.404 * 1.3521+0.892 * 0.6826+0.115 * 0.7531
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3855+4.679 * -0.4152-0.327 * 1.4312
=-4.88

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $101 Mil.
Revenue was 212.393 + 214.447 + 255.099 + 378.551 = $1,060 Mil.
Gross Profit was 97.905 + 91.398 + 113.967 + 178.041 = $481 Mil.
Total Current Assets was $151 Mil.
Total Assets was $3,285 Mil.
Property, Plant and Equipment(Net PPE) was $3,047 Mil.
Depreciation, Depletion and Amortization(DDA) was $390 Mil.
Selling, General & Admin. Expense(SGA) was $38 Mil.
Total Current Liabilities was $182 Mil.
Long-Term Debt was $908 Mil.
Net Income was -205.281 + -274.389 + -248.354 + -42.551 = $-771 Mil.
Non Operating Income was 8.266 + -1.895 + 6.584 + 39.308 = $52 Mil.
Cash Flow from Operations was 123.876 + 97.297 + 160.309 + 159.466 = $541 Mil.
Accounts Receivable was $179 Mil.
Revenue was 400.974 + 405.431 + 387.988 + 359.121 = $1,554 Mil.
Gross Profit was 206.848 + 215.566 + 202.809 + 183.25 = $808 Mil.
Total Current Assets was $220 Mil.
Total Assets was $4,432 Mil.
Property, Plant and Equipment(Net PPE) was $4,125 Mil.
Depreciation, Depletion and Amortization(DDA) was $386 Mil.
Selling, General & Admin. Expense(SGA) was $40 Mil.
Total Current Liabilities was $351 Mil.
Long-Term Debt was $677 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)
=(101.155 / 1060.49) / (179.464 / 1553.514)
=0.09538515 / 0.11552133
=0.8257

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)
=(91.398 / 1553.514) / (97.905 / 1060.49)
=0.52041565 / 0.45385718
=1.1467

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 - (150.67 + 3046.634) / 3284.518) / (1 - (220.127 + 4124.648) / 4431.811)
=0.02655306 / 0.01963892
=1.3521

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
=1060.49 / 1553.514
=0.6826

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))
=(385.729 / (385.729 + 4124.648)) / (390.27 / (390.27 + 3046.634))
=0.08552035 / 0.11355278
=0.7531

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)
=(38.251 / 1060.49) / (40.444 / 1553.514)
=0.03606918 / 0.02603388
=1.3855

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)
=((908.234 + 182.351) / 3284.518) / ((676.843 + 351.339) / 4431.811)
=0.33203806 / 0.23200042
=1.4312

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
=(-770.575 - 52.263 - 540.948) / 3284.518
=-0.4152

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 -4.88 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.25690.76440.79811.02950.73961.42660.91570.81130.93111.167
GMI 0.87860.90121.06180.95921.03231.05941.00220.99951.04450.9809
AQI 1.00091.20970.88040.87231.0730.78280.86610.88940.92880.9009
SGI 1.70571.31250.99691.1720.52271.22651.38691.08911.02791.1635
DEPI 0.98880.9121.0440.92961.23781.0270.90491.03551.02090.9225
SGAI 0.70150.99281.18270.98421.80710.8880.82871.01081.12680.9424
LVGI 1.29190.82040.70391.21770.39551.91581.35511.55950.90041.1287
TATA -0.07-0.101-0.1415-0.2116-0.245-0.0954-0.127-0.1772-0.1196-0.1347
M-score -2.05-2.81-3.28-3.44-4.16-2.67-2.96-3.63-3.07-2.90

Unit Corp Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.98370.88530.93111.1320.99811.07881.1670.70450.72620.8257
GMI 1.02041.03651.04451.02330.99220.9630.98091.02091.08661.1467
AQI 0.8840.94870.92880.92590.84550.86380.90091.01711.1841.3521
SGI 0.98640.9971.02791.09361.13261.17311.16351.01320.84040.6826
DEPI 1.170.99321.02090.98940.9560.96120.92250.82990.77530.7531
SGAI 1.17741.18911.12681.03370.98460.91790.94241.0491.20691.3855
LVGI 1.4740.95470.90040.90790.9671.04031.12871.21921.35551.4312
TATA -0.1575-0.1536-0.1196-0.0962-0.1022-0.108-0.1347-0.2394-0.3313-0.4152
M-score -3.45-3.33-3.07-2.72-2.90-2.84-2.90-3.94-4.48-4.88
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