Seadrill Beneish M-Score Historical Data
The historical data trend for Seadrill'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.
|
Seadrill Annual Data
|
|
Trend |
Dec19 |
Dec20 |
Dec21 |
Dec22 |
Dec23 |
| Beneish M-Score |
|
- |
- |
- |
- |
-2.27 |
|
Seadrill Quarterly Data
|
|
Dec19 |
Dec20 |
Jun21 |
Sep21 |
Dec21 |
Jun22 |
Sep22 |
Dec22 |
Mar23 |
Jun23 |
Sep23 |
Dec23 |
| Beneish M-Score |
|
|
|
|
|
|
|
- |
-3.35 |
-2.51 |
-2.48 |
-2.27 |
Competitive Comparison
For the Oil & Gas Drilling subindustry, Seadrill'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.
Seadrill Beneish M-Score Distribution
For the Oil & Gas industry and Energy sector, Seadrill's Beneish M-Score distribution charts can be found below:
* The bar in red indicates where Seadrill's Beneish M-Score falls into.
Seadrill 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 Seadrill 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 * 0.7474 | + | 0.528 * 0.5248 | + | 0.404 * 0.4793 | + | 0.892 * 1.8846 | + | 0.115 * 1 |
| - | 0.172 * SGAI | + | 4.679 * TATA | - | 0.327 * LVGI |
| - | 0.172 * 0.7409 | + | 4.679 * -0.003319 | - | 0.327 * 0.7356 |
| = | -2.27 |
* 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 $231 Mil.
Revenue was 408 + 414 + 414 + 266 = $1,502 Mil.
Gross Profit was 81 + 132 + 136 + 64 = $413 Mil.
Total Current Assets was $1,158 Mil.
Total Assets was $4,218 Mil.
Property, Plant and Equipment(Net PPE) was $2,868 Mil.
Depreciation, Depletion and Amortization(DDA) was $155 Mil.
Selling, General, & Admin. Expense(SGA) was $74 Mil.
Total Current Liabilities was $389 Mil.
Long-Term Debt & Capital Lease Obligation was $608 Mil.
Net Income was 73 + 90 + 94 + 43 = $300 Mil.
Non Operating Income was 7 + 18 + -2 + 4 = $27 Mil.
Cash Flow from Operations was 140 + 112 + 20 + 15 = $287 Mil.
|
Total Receivables was $164 Mil.
Revenue was 0 + 269 + 253 + 275 = $797 Mil.
Gross Profit was 0 + 37 + 41 + 37 = $115 Mil.
Total Current Assets was $857 Mil.
Total Assets was $2,801 Mil.
Property, Plant and Equipment(Net PPE) was $1,678 Mil.
Depreciation, Depletion and Amortization(DDA) was $0 Mil.
Selling, General, & Admin. Expense(SGA) was $53 Mil.
Total Current Liabilities was $404 Mil.
Long-Term Debt & Capital Lease Obligation was $496 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) |
| = | (231 / 1502) | / | (164 / 797) |
| = | 0.153795 | / | 0.205772 |
| | = | 0.7474 |
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) |
| = | (115 / 797) | / | (413 / 1502) |
| = | 0.144291 | / | 0.274967 |
| | = | 0.5248 |
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 - (1158 + 2868) / 4218) | / | (1 - (857 + 1678) / 2801) |
| = | 0.045519 | / | 0.094966 |
| | = | 0.4793 |
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 |
| = | 1502 | / | 797 |
| | = | 1.8846 |
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)) |
| = | (0 / (0 + 1678)) | / | (155 / (155 + 2868)) |
| = | 0 | / | 0.051274 |
| | = | 1 |
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) |
| = | (74 / 1502) | / | (53 / 797) |
| = | 0.049268 | / | 0.066499 |
| | = | 0.7409 |
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) |
| = | ((608 + 389) / 4218) | / | ((496 + 404) / 2801) |
| = | 0.236368 | / | 0.321314 |
| | = | 0.7356 |
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 |
| = | (300 - 27 | - | 287) | / | 4218 |
| | = | -0.003319 |
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.
Seadrill has a M-score of -2.27 suggests that the company is unlikely to be a manipulator.
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