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Baker Hughes Co Beneish M-Score

: -2.80 (As of Today)
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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 -2.8 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NYSE:BKR' s Beneish M-Score Range Over the Past 10 Years
Min: -2.8   Med: -2.47   Max: -1.93
Current: -2.8

-2.8
-1.93

During the past 6 years, the highest Beneish M-Score of Baker Hughes Co was -1.93. The lowest was -2.80. And the median was -2.47.


Baker Hughes Co Beneish M-Score Historical Data

The historical data trend for Baker Hughes Co'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.

* Premium members only.

Baker Hughes Co Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Beneish M-Score
Premium Member Only - - -2.44 -2.56 -2.22

Baker Hughes Co Quarterly Data
Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21
Beneish M-Score Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.28 -2.22 -2.75 -2.66 -2.80

Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, Baker Hughes Co'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.

   

Baker Hughes Co Beneish M-Score Distribution

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

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



Baker Hughes Co 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 Baker Hughes 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 * 1.0311+0.528 * 0.8604+0.404 * 1.0003+0.892 * 0.9515+0.115 * 1.0617
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9821+4.679 * -0.0539-0.327 * 0.9639
=-2.80

* 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 (Sep21) TTM:Last Year (Sep20) TTM:
Accounts Receivable was $4,569 Mil.
Revenue was 5093 + 5142 + 4782 + 5495 = $20,512 Mil.
Gross Profit was 1010 + 976 + 858 + 1009 = $3,853 Mil.
Total Current Assets was $14,887 Mil.
Total Assets was $35,772 Mil.
Property, Plant and Equipment(Net PPE) was $4,982 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,139 Mil.
Selling, General, & Admin. Expense(SGA) was $2,410 Mil.
Total Current Liabilities was $9,354 Mil.
Long-Term Debt & Capital Lease Obligation was $6,708 Mil.
Net Income was 8 + -68 + -452 + 652 = $140 Mil.
Non Operating Income was -127 + -203 + -733 + 1154 = $91 Mil.
Cash Flow from Operations was 416 + 506 + 678 + 377 = $1,977 Mil.
Accounts Receivable was $4,657 Mil.
Revenue was 5049 + 4736 + 5425 + 6348 = $21,558 Mil.
Gross Profit was 757 + 678 + 755 + 1294 = $3,484 Mil.
Total Current Assets was $15,208 Mil.
Total Assets was $37,339 Mil.
Property, Plant and Equipment(Net PPE) was $5,536 Mil.
Depreciation, Depletion and Amortization(DDA) was $1,363 Mil.
Selling, General, & Admin. Expense(SGA) was $2,579 Mil.
Total Current Liabilities was $10,639 Mil.
Long-Term Debt & Capital Lease Obligation was $6,754 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Accounts Receivable 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)
=(4569 / 20512) / (4657 / 21558)
=0.22274766 / 0.21602189
=1.0311

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)
=(3484 / 21558) / (3853 / 20512)
=0.16161054 / 0.18784126
=0.8604

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 - (14887 + 4982) / 35772) / (1 - (15208 + 5536) / 37339)
=0.44456558 / 0.44444147
=1.0003

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
=20512 / 21558
=0.9515

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))
=(1363 / (1363 + 5536)) / (1139 / (1139 + 4982))
=0.19756486 / 0.18608071
=1.0617

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)
=(2410 / 20512) / (2579 / 21558)
=0.1174922 / 0.11963076
=0.9821

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)
=((6708 + 9354) / 35772) / ((6754 + 10639) / 37339)
=0.4490104 / 0.46581322
=0.9639

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
=(140 - 91 - 1977) / 35772
=-0.0539

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.

Baker Hughes Co has a M-score of -2.80 suggests that the company is unlikely to be a manipulator.


Baker Hughes Co Beneish M-Score Related Terms

Thank you for viewing the detailed overview of Baker Hughes Co's Beneish M-Score provided by GuruFocus.com. Please click on the following links to see related term pages.


Baker Hughes Co Business Description

Baker Hughes Co logo
Industry
Energy » Oil & Gas NAICS : 213112 SIC : 1389
Traded in Other Exchanges
Address
17021 Aldine Westfield Road, Houston, TX, USA, 77073-5101
Baker Hughes in its current form originated in 2017 from the merger of Baker Hughes with GE Oil & Gas. Baker Hughes' history of oilfield innovation stretches back over a century, and with the combination with GE, the company now can offer the full spectrum of services to oil and gas companies, from upstream to downstream.
Executives
General Electric Co director, 10 percent owner 5 NECCO STREET BOSTON MA 02210
Simonelli Lorenzo director, officer: Chairman, President and CEO 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Qasem Rami officer: EVP, Digital Solutions 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Ukpong Uwem officer: EVP, Global Operations 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Camilleri Kurt officer: SVP/Controller/Chief Acctg Off 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Saunders Neil officer: EVP, Oilfield Equipment 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Borras Maria C officer: EVP, Oilfield Services 2929 ALLEN PARKWAY, SUITE 2100 HOUSTON TX 77019
Worrell Brian officer: Chief Financial Officer 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Christie Roderick officer: EVP, Turbomachinery 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Fiorentino Michele officer: EVP, Strategy & Business Dev 17021 ALDINE WESTFIELD ROAD HOUSTON TX 77073
Brenneman Gregory D director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: BRENNEMAN GREGORY D a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Elsenhans Lynn Laverty director 6400 POPLAR AVENUE MEMPHIS TN 38197
Carroll Cynthia B director C/O ALCAN INC. 1188 SHERBROOKE STREET WEST MONTREAL A8 H3A 3G2
Ebel Gregory L director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: EBEL GREGORY L a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Rice John G director GENERAL ELECTRIC COMPANY 41 FARNSWORTH STREET BOSTON MA 02210

Baker Hughes Co Headlines

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