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NOV Beneish M-Score

: -2.58 (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 -2.58 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

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

NOV' s Beneish M-Score Range Over the Past 10 Years
Min: -11.61   Med: -2.37   Max: 4.75
Current: -2.58

During the past 13 years, the highest Beneish M-Score of NOV was 4.75. The lowest was -11.61. And the median was -2.37.


NOV Beneish M-Score Historical Data

The historical data trend for NOV'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.

NOV Annual Data
Trend Dec12 Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21
Beneish M-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -3.33 -2.67 -2.75 -3.23 -3.01

NOV Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
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 -2.84 -2.83 -3.01 -2.90 -2.58

Competitive Comparison

For the Oil & Gas Equipment & Services subindustry, NOV'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.

   

NOV Beneish M-Score Distribution

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

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



NOV 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 NOV 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 * 1.0069+0.528 * 0.5766+0.404 * 1.0138+0.892 * 1.1406+0.115 * 1.0098
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8864+4.679 * -0.0025-0.327 * 1.0762
=-2.58

* 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 (Jun22) TTM:Last Year (Jun21) TTM:
Total Receivables was $2,058 Mil.
Revenue was 1727 + 1548 + 1517 + 1341 = $6,133 Mil.
Gross Profit was 309 + 214 + 202 + 185 = $910 Mil.
Total Current Assets was $5,093 Mil.
Total Assets was $9,700 Mil.
Property, Plant and Equipment(Net PPE) was $2,282 Mil.
Depreciation, Depletion and Amortization(DDA) was $299 Mil.
Selling, General, & Admin. Expense(SGA) was $921 Mil.
Total Current Liabilities was $2,171 Mil.
Long-Term Debt & Capital Lease Obligation was $2,277 Mil.
Net Income was 69 + -50 + -40 + -69 = $-90 Mil.
Non Operating Income was 14 + 4 + 3 + -1 = $20 Mil.
Cash Flow from Operations was -124 + -103 + 36 + 105 = $-86 Mil.
Total Receivables was $1,792 Mil.
Revenue was 1417 + 1249 + 1327 + 1384 = $5,377 Mil.
Gross Profit was 231 + 156 + -66 + 139 = $460 Mil.
Total Current Assets was $4,908 Mil.
Total Assets was $9,601 Mil.
Property, Plant and Equipment(Net PPE) was $2,423 Mil.
Depreciation, Depletion and Amortization(DDA) was $321 Mil.
Selling, General, & Admin. Expense(SGA) was $911 Mil.
Total Current Liabilities was $1,810 Mil.
Long-Term Debt & Capital Lease Obligation was $2,281 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)
=(2058 / 6133) / (1792 / 5377)
=0.33556172 / 0.33327134
=1.0069

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)
=(460 / 5377) / (910 / 6133)
=0.08554956 / 0.14837763
=0.5766

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 - (5093 + 2282) / 9700) / (1 - (4908 + 2423) / 9601)
=0.23969072 / 0.2364337
=1.0138

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
=6133 / 5377
=1.1406

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))
=(321 / (321 + 2423)) / (299 / (299 + 2282))
=0.11698251 / 0.11584657
=1.0098

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)
=(921 / 6133) / (911 / 5377)
=0.1501712 / 0.16942533
=0.8864

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)
=((2277 + 2171) / 9700) / ((2281 + 1810) / 9601)
=0.4585567 / 0.42610145
=1.0762

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
=(-90 - 20 - -86) / 9700
=-0.0025

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.

NOV has a M-score of -2.58 suggests that the company is unlikely to be a manipulator.


NOV Business Description

NOV logo
Address
7909 Parkwood Circle Drive, Houston, TX, USA, 77036-6565
National Oilwell Varco is a leading supplier of oil and gas drilling rig equipment and products, such as downhole tools, drill pipe, and well casing. The company operates on a global scale, with more than a thousand locations in six continents.
Executives
Shelton Kirk M. officer: Pres. - Compl. and Prod. Sol. C/O NOV INC., 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036
Joseph Isaac H. officer: Pres. - Wellbore Technologies C/O NOV INC., 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036
Novak Christy Lynn officer: VP, Corp. Controller, CAO C/O NOV INC. 7909 PARKWOOD CIRCLE DR. HOUSTON TX 77036
Welborn Robert S. director C/O NOV INC. 7909 PARKWOOD CIRCLE DR. HOUSTON TX 77036
Meyer Melody B director 1 NORTH WAUKEGAN ROAD NORTH CHICAGO IL 60064
Hackett James T director C/O FLUOR CORPORATION 6700 LAS COLINAS BLVD IRVING TX 75039
Jarvis Roger L director SPINNAKER EXPLORATION CO 1200 SMITH ST STE 800 HOUSTON TX 77002
Thomas William R. director 1111 BAGBY, SKY LOBBY 2 HOUSTON TX 77002
Donadio Marcela E director 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036-6565
Armstrong Greg L director
Guill Ben A director 600 TRAVIS SUITE 6000 HOUSTON TX 77002
Mattson Eric L director C/O REX ENERGY CORP 366 WALKER DRIVE STATE COLLEGE PA 16801
Bayardo Jose A officer: Senior VP and CFO 11700 OLD KATY ROAD SUITE 300 HOUSTON TX 77079
Weinstock Craig L. officer: Sr. VP. & Gen. Counsel 7909 PARKWOOD CIRCLE DRIVE HOUSTON TX 77036-6565
Williams Clay C director, officer: Chairman, President and CEO

NOV Headlines

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