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ConocoPhillips (NYSE:COP)
Beneish M-Score
-3.13 (As of Today)

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

An M-Score of less than -2.22 suggests that the company is not an accounting manipulator.
An M-Score of greater than -2.22 signals that the company is likely an accounting manipulator.

ConocoPhillips has a M-score of -3.13 suggests that the company is not a manipulator.

COP' s 10-Year Beneish M-Score Range
Min: -3.49   Max: -0.77
Current: -3.13

-3.49
-0.77

During the past 13 years, the highest Beneish M-Score of ConocoPhillips was -0.77. The lowest was -3.49. And the median was -2.68.


Definition

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Z-Score) or business trend (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 ConocoPhillips 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 * 0.9182+0.528 * 1.16+0.404 * 1.0181+0.892 * 0.6882+0.115 * 0.8791
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1547+4.679 * -0.0728-0.327 * 1.0181
=-3.13

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $5,044 Mil.
Revenue was 8660 + 8002 + 11851 + 12917 = $41,430 Mil.
Gross Profit was 3632 + 2963 + 4134 + 6173 = $16,902 Mil.
Total Current Assets was $11,944 Mil.
Total Assets was $112,003 Mil.
Property, Plant and Equipment(Net PPE) was $74,387 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,827 Mil.
Selling, General & Admin. Expense(SGA) was $712 Mil.
Total Current Liabilities was $8,734 Mil.
Long-Term Debt was $24,787 Mil.
Net Income was -179 + 272 + -39 + 2704 = $2,758 Mil.
Non Operating Income was -70 + 0 + 83 + 8 = $21 Mil.
Cash Flow from Operations was 2172 + 1870 + 2597 + 4251 = $10,890 Mil.
Accounts Receivable was $7,983 Mil.
Revenue was 14701 + 16048 + 13985 + 15470 = $60,204 Mil.
Gross Profit was 7176 + 7026 + 6488 + 7800 = $28,490 Mil.
Total Current Assets was $18,836 Mil.
Total Assets was $121,648 Mil.
Property, Plant and Equipment(Net PPE) was $75,424 Mil.
Depreciation, Depletion and Amortization(DDA) was $7,757 Mil.
Selling, General & Admin. Expense(SGA) was $896 Mil.
Total Current Liabilities was $16,191 Mil.
Long-Term Debt was $19,570 Mil.



1. DSRI = Days Sales in Receivables Index

Measured as the ratio of days’ sales in 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)
=(5044 / 41430) / (7983 / 60204)
=0.12174753 / 0.13259916
=0.9182

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)
=(2963 / 60204) / (3632 / 41430)
=0.47322437 / 0.40796524
=1.16

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 plant, property and equipment to total assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (11944 + 74387) / 112003) / (1 - (18836 + 75424) / 121648)
=0.22920815 / 0.22514139
=1.0181

4. SGI = Sales Growth Index

Ratio of sales 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
=41430 / 60204
=0.6882

5. DEPI = Depreciation Index

Measured as the ratio of the rate of depreciation 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))
=(7757 / (7757 + 75424)) / (8827 / (8827 + 74387))
=0.09325447 / 0.1060759
=0.8791

6. SGAI = Sales, General and Administrative expenses Index

The ratio of SGA expenses 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)
=(712 / 41430) / (896 / 60204)
=0.01718561 / 0.01488273
=1.1547

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$sgai= in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((24787 + 8734) / 112003) / ((19570 + 16191) / 121648)
=0.29928663 / 0.29397113
=1.0181

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
=(2758 - 21 - 10890) / 112003
=-0.0728

An M-Score of less than -2.22 suggests that the company will not be a manipulator. An M-Score of greater than -2.22 signals that the company is likely to be a manipulator.

ConocoPhillips has a M-score of -3.13 suggests that the company will not be a manipulator.


Related Terms

Altman Z-Score, Piotroski F-Score, Accounts Receivable, Revenue, Gross Profit, Total Current Assets, Total Assets, Property, Plant and Equipment, Depreciation, Depletion and Amortization, Selling, General & Admin. Expense, Total Current Liabilities, Long-Term Debt, Net Income, Non Operating Income, Cash Flow from Operations


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

ConocoPhillips Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 0.87971.14911.12380.57951.77980.80033.60410.57570.98630.8465
GMI 0.63360.86611.01171.16331.02650.98810.60340.94930.94311.1031
AQI 1.05411.06211.1090.741.0670.87961.01310.87221.00431.0061
SGI 1.54451.02811.03171.26570.6191.30360.33260.93850.93940.9531
DEPI 0.96190.92640.91360.87971.01170.96891.24730.88980.96210.9316
SGAI 0.88481.10710.97020.85040.8290.84051.29721.36240.82190.903
LVGI 0.93051.00120.8831.28890.97280.96281.0121.00620.940.9492
TATA -0.0723-0.0601-0.0818-0.0695-0.0696-0.0564-0.0471-0.0465-0.0592-0.0852
M-score -2.58-2.67-2.64-3.06-2.35-2.68-1.13-3.30-2.81-2.98

ConocoPhillips Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.61641.13910.90670.98630.9630.94290.93150.84650.78110.9182
GMI 0.9670.95620.94850.95240.96020.96911.01771.09241.10021.16
AQI 0.88130.93860.9671.00430.97921.05711.041.00611.06441.0181
SGI 0.92690.95761.00150.93940.98471.00550.95090.95310.79590.6882
DEPI 0.80150.93140.85630.96210.98950.99070.98270.93160.8910.8791
SGAI 1.08120.96720.70910.82190.9360.98681.08620.9031.02711.1547
LVGI 0.92460.9930.99710.940.92990.90750.90460.94920.94981.0181
TATA -0.0581-0.0724-0.0665-0.0592-0.0713-0.0683-0.0726-0.0851-0.0665-0.0728
M-score -3.25-2.78-2.88-2.80-2.86-2.81-2.89-2.98-3.10-3.13
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