Valaris Beneish M-Score Historical Data
The historical data trend for Valaris's Beneish M-Score can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
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Valaris Annual Data
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|
Trend |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
|
- |
- |
- |
-2.71 |
-1.53 |
|
Valaris Quarterly Data
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|
Dec19 |
Jun20 |
Sep20 |
Dec20 |
Mar21 |
Jun21 |
Sep21 |
Dec21 |
Mar22 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
|
|
|
|
|
|
|
|
|
|
|
-2.71 |
-2.49 |
-3.25 |
-3.07 |
-1.53 |
Competitive Comparison
For the Oil & Gas Equipment & Services subindustry, Valaris's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Valaris Beneish M-Score Distribution
For the Oil & Gas industry and Energy sector, Valaris's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Valaris's Beneish M-Score falls into.
Valaris Beneish M-Score Calculation
The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski 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 Valaris 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 * 0.9186 | + | 0.528 * 1.0224 | + | 0.404 * 1.7456 | + | 0.892 * 1.1134 | + | 0.115 * 1.4648 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 1.1024 | + | 4.679 * 0.135672 | - | 0.327 * 1.1684 |
| = | -1.53 |
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
| This Year (Dec23) TTM: | Last Year (Dec22) TTM: |
Total Receivables was $459 Mil.
Revenue was 483.8 + 455.1 + 415.2 + 430.1 = $1,784 Mil.
Gross Profit was 54.3 + 38.4 + 17.2 + 29.6 = $140 Mil.
Total Current Assets was $1,272 Mil.
Total Assets was $4,322 Mil.
Property, Plant and Equipment(Net PPE) was $1,634 Mil.
Depreciation, Depletion and Amortization(DDA) was $101 Mil.
Selling, General, & Admin. Expense(SGA) was $99 Mil.
Total Current Liabilities was $744 Mil.
Long-Term Debt & Capital Lease Obligation was $1,128 Mil.
Net Income was 835.2 + 12.9 + -29.4 + 46.7 = $865 Mil.
Non Operating Income was 2.8 + 6.3 + -1.5 + 3.9 = $12 Mil.
Cash Flow from Operations was 96.7 + 48.2 + -29.1 + 151.7 = $268 Mil.
|
Total Receivables was $449 Mil.
Revenue was 433.6 + 437.2 + 413.3 + 318.4 = $1,603 Mil.
Gross Profit was 56.4 + 77.9 + 29.2 + -35.4 = $128 Mil.
Total Current Assets was $1,346 Mil.
Total Assets was $2,860 Mil.
Property, Plant and Equipment(Net PPE) was $977 Mil.
Depreciation, Depletion and Amortization(DDA) was $91 Mil.
Selling, General, & Admin. Expense(SGA) was $81 Mil.
Total Current Liabilities was $504 Mil.
Long-Term Debt & Capital Lease Obligation was $556 Mil.
|
1. DSRI = Days Sales in Receivables Index
Measured as the ratio of Revenue in Total 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) |
| = | (459.3 / 1784.2) | / | (449.1 / 1602.5) |
| = | 0.257426 | / | 0.28025 |
| | = | 0.9186 |
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) |
| = | (128.1 / 1602.5) | / | (139.5 / 1784.2) |
| = | 0.079938 | / | 0.078186 |
| | = | 1.0224 |
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 Property, Plant and Equipment to Total Assets.
| AQI | = | (1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) | / | (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1) |
| = | (1 - (1272.2 + 1633.8) / 4322.2) | / | (1 - (1346.2 + 977.2) / 2860.3) |
| = | 0.327657 | / | 0.187708 |
| | = | 1.7456 |
4. SGI = Sales Growth Index
Ratio of Revenue 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 |
| = | 1784.2 | / | 1602.5 |
| | = | 1.1134 |
5. DEPI = Depreciation Index
Measured as the ratio of the rate of Depreciation, Depletion and Amortization 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)) |
| = | (91.2 / (91.2 + 977.2)) | / | (101.1 / (101.1 + 1633.8)) |
| = | 0.085361 | / | 0.058274 |
| | = | 1.4648 |
Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.
6. SGAI = Sales, General and Administrative expenses Index
The ratio of Selling, General, & Admin. Expense(SGA) to Sales 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) |
| = | (99.3 / 1784.2) | / | (80.9 / 1602.5) |
| = | 0.055655 | / | 0.050484 |
| | = | 1.1024 |
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 in leverage
| LVGI | = | ((LTD_t + CurrentLiabilities_t) / TotalAssets_t) | / | ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1) |
| = | ((1128.2 + 744.3) / 4322.2) | / | ((556.2 + 504.4) / 2860.3) |
| = | 0.433228 | / | 0.3708 |
| | = | 1.1684 |
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 |
| = | (865.4 - 11.5 | - | 267.5) | / | 4322.2 |
| | = | 0.135672 |
An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.
Valaris has a M-score of -1.53 signals that the company is likely to be a manipulator.
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