Transocean (MEX:RIG N) Beneish M-Score : -2.49 (As of Apr. 08, 2025)

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What is Transocean Beneish M-Score?

The zones of discrimination for M-Score is as such:

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.

Good Sign:

Beneish M-Score -2.49 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Transocean's Beneish M-Score or its related term are showing as below:

MEX:RIG N' s Beneish M-Score Range Over the Past 10 Years
Min: -3.19 Med: -2.78 Max: -2.01
Current: -2.49

During the past 13 years, the highest Beneish M-Score of Transocean was -2.01. The lowest was -3.19. And the median was -2.78.

Transocean Beneish M-Score Historical Data

The historical data trend for Transocean'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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Transocean Beneish M-Score Chart

Transocean Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Beneish M-Score

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-2.75

-2.91

-2.81

-2.54

-2.49

Transocean Quarterly Data
	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24
Beneish M-Score	Get a 7-Day Free Trial															-2.54	-2.36	-2.42	-2.42	-2.49

Competitive Comparison of Transocean's Beneish M-Score

For the Oil & Gas Drilling subindustry, Transocean'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.

Transocean's Beneish M-Score Distribution in the Oil & Gas Industry

For the Oil & Gas industry and Energy sector, Transocean's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Transocean's Beneish M-Score falls into.

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Transocean 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 Transocean for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 0.9944

0.528 * 0.9307

0.404 * 0.9584

0.892 * 1.3611

0.115 * 1.129

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9129

4.679 * -0.019382

0.327 * 0.9681

-2.27

This Year (Dec24) TTM:

Last Year (Dec23) TTM:

Total Receivables was MXN11,763 Mil.
Revenue was 19854.626 + 18666.404 + 15773.609 + 12662.943 = MXN66,958 Mil.
Gross Profit was 16100.6 + 14925.247 + 12402.71 + 9592.635 = MXN53,021 Mil.
Total Current Assets was MXN51,138 Mil.
Total Assets was MXN403,996 Mil.
Property, Plant and Equipment(Net PPE) was MXN330,167 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN14,003 Mil.
Selling, General, & Admin. Expense(SGA) was MXN4,037 Mil.
Total Current Liabilities was MXN34,683 Mil.
Long-Term Debt & Capital Lease Obligation was MXN135,708 Mil.
Net Income was 145.99 + -9727.008 + -2253.373 + 1626.433 = MXN-10,208 Mil.
Non Operating Income was 125.134 + -11892.941 + 164.881 + 99.578 = MXN-11,503 Mil.
Cash Flow from Operations was 4296.274 + 3819.918 + 2436.574 + -1427.278 = MXN9,125 Mil.

Total Receivables was MXN8,691 Mil.
Revenue was 12577.918 + 12419.674 + 12497.903 + 11698.225 = MXN49,194 Mil.
Gross Profit was 9454.656 + 9075.245 + 9309.138 + 8417.675 = MXN36,257 Mil.
Total Current Assets was MXN36,087 Mil.
Total Assets was MXN343,796 Mil.
Property, Plant and Equipment(Net PPE) was MXN287,561 Mil.
Depreciation, Depletion and Amortization(DDA) was MXN13,845 Mil.
Selling, General, & Admin. Expense(SGA) was MXN3,249 Mil.
Total Current Liabilities was MXN23,713 Mil.
Long-Term Debt & Capital Lease Obligation was MXN126,068 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)
	=	(11762.615 / 66957.582)	/	(8690.815 / 49193.72)
	=	0.175673	/	0.176665
	=	0.9944

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)
	=	(36256.714 / 49193.72)	/	(53021.192 / 66957.582)
	=	0.737019	/	0.791862
	=	0.9307

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 - (51138.176 + 330166.586) / 403995.764)	/	(1 - (36087.251 + 287560.735) / 343796.419)
	=	0.056166	/	0.058606
	=	0.9584

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
	=	66957.582	/	49193.72
	=	1.3611

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))
	=	(13845.36 / (13845.36 + 287560.735))	/	(14002.774 / (14002.774 + 330166.586))
	=	0.045936	/	0.040686
	=	1.129

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)
	=	(4037.254 / 66957.582)	/	(3249.175 / 49193.72)
	=	0.060296	/	0.066049
	=	0.9129

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)
	=	((135708.04 + 34683.029) / 403995.764)	/	((126067.74 + 23713.024) / 343796.419)
	=	0.421764	/	0.435667
	=	0.9681

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
	=	(-10207.958 - -11503.348	-	9125.488)	/	403995.764
	=	-0.019382

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.

Transocean has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.

Transocean Beneish M-Score Related Terms

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Transocean Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Transocean Ltd (MEX:RIG N) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

RIG:USA 0QOW:UK RIGG34:Brazil

Address

Turmstrasse 30, Steinhausen, CHE, 6312

Website

https://www.deepwater.com

Transocean Ltd. is an international provider of offshore contract drilling services for oil and gas wells. Its segment involves contracting mobile offshore drilling rigs, related equipment, and work crews to drill oil and gas wells.

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