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Unit Corp (NYSE:UNT)
Beneish M-Score
-5.63 (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 -5.63 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: -5.63

-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 -2.97.


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 * 0.9993+0.528 * 0.1045+0.404 * 1.359+0.892 * 0.5106+0.115 * 0.9081
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.627+4.679 * -0.4544-0.327 * 1.4382
=-5.63

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $68.4 Mil.
Revenue was 136.184 + 172.292 + 212.393 + 214.447 = $735.3 Mil.
Gross Profit was -49.641 + -492.636 + -314.409 + -419.666 = $-1,276.4 Mil.
Total Current Assets was $124.1 Mil.
Total Assets was $2,681.1 Mil.
Property, Plant and Equipment(Net PPE) was $2,478.1 Mil.
Depreciation, Depletion and Amortization(DDA) was $307.4 Mil.
Selling, General & Admin. Expense(SGA) was $34.7 Mil.
Total Current Liabilities was $139.4 Mil.
Long-Term Debt was $898.7 Mil.
Net Income was -41.149 + -309.337 + -205.281 + -274.389 = $-830.2 Mil.
Non Operating Income was 10.914 + 13.435 + 8.266 + -1.895 = $30.7 Mil.
Cash Flow from Operations was 70.713 + 65.462 + 123.876 + 97.297 = $357.3 Mil.
Accounts Receivable was $134.1 Mil.
Revenue was 255.099 + 378.551 + 400.974 + 405.431 = $1,440.1 Mil.
Gross Profit was -389.451 + -89.796 + 103.983 + 113.973 = $-261.3 Mil.
Total Current Assets was $190.6 Mil.
Total Assets was $4,050.9 Mil.
Property, Plant and Equipment(Net PPE) was $3,772.5 Mil.
Depreciation, Depletion and Amortization(DDA) was $420.1 Mil.
Selling, General & Admin. Expense(SGA) was $41.8 Mil.
Total Current Liabilities was $207.0 Mil.
Long-Term Debt was $883.6 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)
=(68.424 / 735.316) / (134.093 / 1440.055)
=0.09305387 / 0.09311658
=0.9993

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)
=(-261.291 / 1440.055) / (-1276.352 / 735.316)
=-0.18144515 / -1.73578706
=0.1045

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 - (124.092 + 2478.076) / 2681.088) / (1 - (190.64 + 3772.524) / 4050.905)
=0.02943581 / 0.0216596
=1.359

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
=735.316 / 1440.055
=0.5106

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))
=(420.101 / (420.101 + 3772.524)) / (307.356 / (307.356 + 2478.076))
=0.10019999 / 0.1103441
=0.9081

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)
=(34.69 / 735.316) / (41.756 / 1440.055)
=0.047177 / 0.02899611
=1.627

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)
=((898.722 + 139.411) / 2681.088) / ((883.584 + 207.009) / 4050.905)
=0.38720587 / 0.26922206
=1.4382

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
=(-830.156 - 30.72 - 357.348) / 2681.088
=-0.4544

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 -5.63 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 0.76440.79811.02950.73961.40850.92680.81190.93111.1670.7755
GMI 0.90121.06180.95921.03231.85921.02174.38110.26051.656-0.0818
AQI 1.20970.88040.87231.0730.78280.86610.88940.92880.90091.5798
SGI 1.31250.99691.1720.52271.24221.37031.08831.02791.16350.5431
DEPI 0.9121.0440.92961.23781.0270.90491.03551.02090.92250.7383
SGAI 0.99281.18270.98421.80710.87680.83871.01151.12680.94241.5487
LVGI 0.82040.70391.21770.39551.91581.35511.55950.90041.12871.539
TATA -0.1038-0.1415-0.2121-0.2452-0.0913-0.1267-0.1772-0.1196-0.1347-0.5379
M-score -2.82-3.28-3.44-4.16-2.22-2.95-1.84-3.48-2.55-6.25

Unit Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.93111.1320.99811.07881.1670.70450.72620.82570.77550.9993
GMI 0.40470.3570.61430.56691.486-1.8047-0.5165-0.2889-0.11120.1045
AQI 0.92880.92590.84550.86380.90091.01711.1841.35211.57981.359
SGI 1.02791.09361.13261.17311.16351.01320.84040.68260.54310.5106
DEPI 1.02090.98940.9560.96120.92250.82990.77530.75310.73830.9081
SGAI 1.12681.03370.98460.91790.94241.0491.20691.38551.54871.627
LVGI 0.90040.90790.9671.04031.12871.21921.35551.43121.5391.4382
TATA -0.1196-0.0962-0.1022-0.108-0.1347-0.2394-0.3313-0.4152-0.5379-0.4544
M-score -3.41-3.07-3.10-3.05-2.64-5.43-5.33-5.64-6.26-5.63
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