Switch to:
GuruFocus has detected 2 Warning Signs with Halliburton Co $HAL.
More than 500,000 people have already joined GuruFocus to track the stocks they follow and exchange investment ideas.
Halliburton Co (NYSE:HAL)
Beneish M-Score
-2.82 (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.

Halliburton Co has a M-score of -2.82 suggests that the company is not a manipulator.

HAL' s Beneish M-Score Range Over the Past 10 Years
Min: -4.97   Max: 0.03
Current: -2.82

-4.97
0.03

During the past 13 years, the highest Beneish M-Score of Halliburton Co was 0.03. The lowest was -4.97. And the median was -2.63.


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 Halliburton Co 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 * 1.0468+0.528 * -0.412+0.404 * 1.6245+0.892 * 0.7684+0.115 * 0.9637
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * -2.7575+4.679 * -0.0674-0.327 * 1.0185
=-2.82

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Mar17) TTM:Last Year (Mar16) TTM:
Accounts Receivable was $4,008 Mil.
Revenue was 4279 + 4021 + 3833 + 3835 = $15,968 Mil.
Gross Profit was 258 + -3740 + 171 + 103 = $-3,208 Mil.
Total Current Assets was $9,828 Mil.
Total Assets was $24,885 Mil.
Property, Plant and Equipment(Net PPE) was $8,415 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,540 Mil.
Selling, General & Admin. Expense(SGA) was $-303 Mil.
Total Current Liabilities was $3,842 Mil.
Long-Term Debt was $10,812 Mil.
Net Income was -32 + -149 + 6 + -3208 = $-3,383 Mil.
Non Operating Income was -18 + -91 + -39 + -31 = $-179 Mil.
Cash Flow from Operations was 5 + 1059 + 1041 + -3632 = $-1,527 Mil.
Accounts Receivable was $4,983 Mil.
Revenue was 4198 + 5082 + 5582 + 5919 = $20,781 Mil.
Gross Profit was 273 + 218 + 543 + 686 = $1,720 Mil.
Total Current Assets was $19,105 Mil.
Total Assets was $33,932 Mil.
Property, Plant and Equipment(Net PPE) was $9,252 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,621 Mil.
Selling, General & Admin. Expense(SGA) was $143 Mil.
Total Current Liabilities was $7,412 Mil.
Long-Term Debt was $12,207 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)
=(4008 / 15968) / (4983 / 20781)
=0.251002 / 0.23978634
=1.0468

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)
=(1720 / 20781) / (-3208 / 15968)
=0.08276791 / -0.2009018
=-0.412

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 - (9828 + 8415) / 24885) / (1 - (19105 + 9252) / 33932)
=0.26690778 / 0.16429919
=1.6245

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
=15968 / 20781
=0.7684

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))
=(1621 / (1621 + 9252)) / (1540 / (1540 + 8415))
=0.14908489 / 0.15469613
=0.9637

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)
=(-303 / 15968) / (143 / 20781)
=-0.01897545 / 0.00688129
=-2.7575

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)
=((10812 + 3842) / 24885) / ((12207 + 7412) / 33932)
=0.5888688 / 0.57818578
=1.0185

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
=(-3383 - -179 - -1527) / 24885
=-0.0674

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.

Halliburton Co has a M-score of -2.82 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 local exchange's currency.

Halliburton Co Annual Data

Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15Dec16
DSRI 0.97681.02460.97281.0810.93790.99161.03541.09460.97771.0973
GMI 0.68821.05851.54640.83450.88731.29921.0230.90571.7939-0.4657
AQI 0.95561.0360.84961.08461.08530.97370.96791.09170.8211.9541
SGI 0.67751.19750.80281.22471.38151.1481.03151.1180.7190.6722
DEPI 1.06531.0350.96070.99011.01891.00710.95320.98691.10710.8781
SGAI 0.96110.80370.91430.90330.88820.85251.17390.7870.7643-2.8643
LVGI 0.85870.97271.0880.88611.04990.92481.25840.96441.2791.1095
TATA 0.0595-0.0285-0.0746-0.0175-0.0346-0.0358-0.078-0.0174-0.0881-0.1427
M-score -2.63-2.32-2.82-2.29-2.38-2.33-2.90-2.34-2.85-3.12

Halliburton Co Quarterly Data

Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16Dec16Mar17
DSRI 1.09460.92940.83260.89050.97771.21681.36561.21371.09731.0468
GMI 0.90570.94841.02181.30571.79391.94332.50772.8195-0.4657-0.412
AQI 1.09170.99110.90740.96060.8211.1261.61671.64011.95411.6245
SGI 1.1181.09390.99770.86080.7190.6380.61420.62030.67220.7684
DEPI 0.98690.97220.92460.95671.10711.00831.07151.03330.87810.9637
SGAI 0.7870.77270.95191.28070.76430.789218.142115.4202-2.8643-2.7575
LVGI 0.96440.96480.97020.98631.2791.37531.42931.37931.10951.0185
TATA -0.0174-0.0487-0.0743-0.0883-0.0881-0.1242-0.0957-0.1347-0.1427-0.0674
M-score -2.34-2.67-3.00-3.02-2.85-2.72-4.97-4.63-3.12-2.82
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)

GF Chat

{{numOfNotice}}
FEEDBACK