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Unit Corp (NYSE:UNT)
Beneish M-Score
-3.94 (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 -3.94 suggests that the company is not a manipulator.

UNT' s 10-Year Beneish M-Score Range
Min: -4.79   Max: 14.85
Current: -3.94

-4.79
14.85

During the past 13 years, the highest Beneish M-Score of Unit Corp was 14.85. The lowest was -4.79. And the median was -2.83.


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 * 0.7045+0.528 * 1.0209+0.404 * 1.0171+0.892 * 1.0132+0.115 * 0.8299
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.049+4.679 * -0.2394-0.327 * 1.2192
=-3.94

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $134 Mil.
Revenue was 255.099 + 378.551 + 400.974 + 405.431 = $1,440 Mil.
Gross Profit was 113.967 + 178.041 + 206.848 + 215.566 = $714 Mil.
Total Current Assets was $191 Mil.
Total Assets was $4,051 Mil.
Property, Plant and Equipment(Net PPE) was $3,773 Mil.
Depreciation, Depletion and Amortization(DDA) was $420 Mil.
Selling, General & Admin. Expense(SGA) was $42 Mil.
Total Current Liabilities was $207 Mil.
Long-Term Debt was $884 Mil.
Net Income was -248.354 + -42.551 + 67.522 + 54.36 = $-169 Mil.
Non Operating Income was 6.584 + 39.308 + 19.773 + -10.758 = $55 Mil.
Cash Flow from Operations was 160.309 + 159.466 + 223.999 + 202.068 = $746 Mil.
Accounts Receivable was $188 Mil.
Revenue was 387.988 + 359.121 + 333.776 + 340.421 = $1,421 Mil.
Gross Profit was 202.809 + 183.25 + 161.551 + 172.28 = $720 Mil.
Total Current Assets was $223 Mil.
Total Assets was $4,117 Mil.
Property, Plant and Equipment(Net PPE) was $3,806 Mil.
Depreciation, Depletion and Amortization(DDA) was $345 Mil.
Selling, General & Admin. Expense(SGA) was $39 Mil.
Total Current Liabilities was $263 Mil.
Long-Term Debt was $646 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)
=(134.093 / 1440.055) / (187.872 / 1421.306)
=0.09311658 / 0.13218265
=0.7045

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)
=(178.041 / 1421.306) / (113.967 / 1440.055)
=0.50649895 / 0.49610744
=1.0209

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 - (190.64 + 3772.524) / 4050.905) / (1 - (223.263 + 3805.9) / 4116.836)
=0.0216596 / 0.02129621
=1.0171

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
=1440.055 / 1421.306
=1.0132

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))
=(345.183 / (345.183 + 3805.9)) / (420.101 / (420.101 + 3772.524))
=0.08315493 / 0.10019999
=0.8299

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)
=(41.756 / 1440.055) / (39.287 / 1421.306)
=0.02899611 / 0.02764148
=1.049

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)
=((883.584 + 207.009) / 4050.905) / ((645.809 + 263.237) / 4116.836)
=0.26922206 / 0.22081181
=1.2192

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
=(-169.023 - 54.907 - 745.842) / 4050.905
=-0.2394

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 -3.94 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.81130.91020.98370.88530.93111.1320.99811.07881.1670.7045
GMI 0.99951.00091.02041.03651.04451.02330.99220.9630.98091.0209
AQI 0.88940.94210.8840.94870.92880.92590.84550.86380.90091.0171
SGI 1.08911.00430.98640.9971.02791.09361.13261.17311.16351.0132
DEPI 1.03551.09051.170.99321.02090.98940.9560.96120.92250.8299
SGAI 1.01081.14711.17741.18911.12681.03370.98460.91790.94241.049
LVGI 1.55951.61221.4740.95470.90040.90790.9671.04031.12871.2192
TATA -0.1773-0.1852-0.1575-0.1536-0.1196-0.0962-0.1022-0.108-0.1347-0.2394
M-score -3.63-3.66-3.45-3.33-3.07-2.72-2.90-2.84-2.90-3.94
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