Patterson-UTI Energy (STU:PE1) Beneish M-Score : 18.84 (As of May. 14, 2024)

View and export this data going back to . Start your Free Trial

What is Patterson-UTI Energy 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.

Warning Sign:

Beneish M-Score 18.84 higher than -1.78, which implies that the company might have manipulated its financial results.

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

STU:PE1' s Beneish M-Score Range Over the Past 10 Years
Min: -16.96 Med: -3.25 Max: 22.74
Current: 18.84

During the past 13 years, the highest Beneish M-Score of Patterson-UTI Energy was 22.74. The lowest was -16.96. And the median was -3.25.

Patterson-UTI Energy Beneish M-Score Historical Data

The historical data trend for Patterson-UTI Energy'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.

Patterson-UTI Energy Beneish M-Score Chart

Patterson-UTI Energy Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

Get a 7-Day Free Trial

-4.60

-4.65

-3.10

-4.69

18.37

Patterson-UTI Energy Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															-4.18	-3.99	17.37	18.37	18.84

Competitive Comparison of Patterson-UTI Energy's Beneish M-Score

For the Oil & Gas Drilling subindustry, Patterson-UTI Energy'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.

Patterson-UTI Energy's Beneish M-Score Distribution in the Oil & Gas Industry

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

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

Patterson-UTI Energy 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 Patterson-UTI Energy 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 * 1.0826

0.528 * 1.2439

0.404 * 52.9976

0.892 * 1.5996

0.115 * 0.8905

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.0293

4.679 * -0.114181

0.327 * 0.7059

18.81

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was €855 Mil.
Revenue was 1389.531 + 1452.819 + 947.731 + 700.451 = €4,491 Mil.
Gross Profit was 145.604 + 170.941 + 114.65 + 132.899 = €564 Mil.
Total Current Assets was €1,246 Mil.
Total Assets was €6,648 Mil.
Property, Plant and Equipment(Net PPE) was €3,170 Mil.
Depreciation, Depletion and Amortization(DDA) was €811 Mil.
Selling, General, & Admin. Expense(SGA) was €189 Mil.
Total Current Liabilities was €844 Mil.
Long-Term Debt & Capital Lease Obligation was €1,171 Mil.
Net Income was 47.136 + 56.808 + 0.047 + 78.099 = €182 Mil.
Non Operating Income was -15.285 + -20.251 + -66.345 + -5.184 = €-107 Mil.
Cash Flow from Operations was 336.62 + 415.064 + 146.243 + 150.317 = €1,048 Mil.

Total Receivables was €494 Mil.
Revenue was 739.543 + 744.321 + 734.778 + 588.637 = €2,807 Mil.
Gross Profit was 140.999 + 140.991 + 105.779 + 50.881 = €439 Mil.
Total Current Assets was €729 Mil.
Total Assets was €2,888 Mil.
Property, Plant and Equipment(Net PPE) was €2,141 Mil.
Depreciation, Depletion and Amortization(DDA) was €474 Mil.
Selling, General, & Admin. Expense(SGA) was €115 Mil.
Total Current Liabilities was €455 Mil.
Long-Term Debt & Capital Lease Obligation was €785 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)
	=	(855.031 / 4490.532)	/	(493.735 / 2807.279)
	=	0.190408	/	0.175877
	=	1.0826

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)
	=	(438.65 / 2807.279)	/	(564.094 / 4490.532)
	=	0.156255	/	0.125619
	=	1.2439

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 - (1246.326 + 3169.733) / 6648.093)	/	(1 - (728.77 + 2141.184) / 2888.25)
	=	0.33574	/	0.006335
	=	52.9976

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
	=	4490.532	/	2807.279
	=	1.5996

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))
	=	(474.48 / (474.48 + 2141.184))	/	(810.841 / (810.841 + 3169.733))
	=	0.181399	/	0.2037
	=	0.8905

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)
	=	(188.713 / 4490.532)	/	(114.618 / 2807.279)
	=	0.042025	/	0.040829
	=	1.0293

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)
	=	((1171.008 + 843.549) / 6648.093)	/	((785.107 + 454.694) / 2888.25)
	=	0.303028	/	0.429257
	=	0.7059

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
	=	(182.09 - -107.065	-	1048.244)	/	6648.093
	=	-0.114181

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.

Patterson-UTI Energy has a M-score of 18.81 signals that the company is likely to be a manipulator.

Patterson-UTI Energy Beneish M-Score Related Terms

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

Patterson-UTI Energy (STU:PE1) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Energy » Oil & Gas » Patterson-UTI Energy Inc (STU:PE1) » Definitions » Beneish M-Score

Comparable Companies

Traded in Other Exchanges

PTEN:USA

Address

10713 West Sam Houston Parkway North, Suite 800, Houston, TX, USA, 77064

Website

https://www.patenergy.com

Patterson-UTI Energy is one of the largest land rig drilling contractors in the United States and maintains moderately sized pressure-pumping operations primarily in Texas and the Appalachian region, plus some modest operations in Colombia. It also provides directional drilling services and tool rental services in most U.S. onshore oil and gas basins.

Patterson-UTI Energy (STU:PE1) Headlines

No Headlines