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ConocoPhillips (NYSE:COP)
Beneish M-Score
-2.86 (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 -2.86 suggests that the company is not a manipulator.

COP' s Beneish M-Score Range Over the Past 10 Years
Min: -4.34   Max: -0.26
Current: -2.86

-4.34
-0.26

During the past 13 years, the highest Beneish M-Score of ConocoPhillips was -0.26. The lowest was -4.34. And the median was -2.63.


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 * 1.1017+0.528 * 1.8203+0.404 * 1.0565+0.892 * 0.6627+0.115 * 0.8431
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.5785+4.679 * -0.0957-0.327 * 1.188
=-2.86

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

This Year (Sep16) TTM:Last Year (Sep15) TTM:
Accounts Receivable was $3,163 Mil.
Revenue was 6516 + 5575 + 5015 + 6766 = $23,872 Mil.
Gross Profit was 2171 + 2128 + 1436 + -1698 = $4,037 Mil.
Total Current Assets was $9,641 Mil.
Total Assets was $94,284 Mil.
Property, Plant and Equipment(Net PPE) was $61,649 Mil.
Depreciation, Depletion and Amortization(DDA) was $9,383 Mil.
Selling, General & Admin. Expense(SGA) was $839 Mil.
Total Current Liabilities was $7,537 Mil.
Long-Term Debt was $27,353 Mil.
Net Income was -1040 + -1071 + -1469 + -3450 = $-7,030 Mil.
Non Operating Income was -136 + -45 + -152 + -2232 = $-2,565 Mil.
Cash Flow from Operations was 1280 + 1259 + 421 + 1596 = $4,556 Mil.
Accounts Receivable was $4,332 Mil.
Revenue was 7507 + 8660 + 8002 + 11851 = $36,020 Mil.
Gross Profit was 2404 + 3632 + 2963 + 2089 = $11,088 Mil.
Total Current Assets was $9,664 Mil.
Total Assets was $105,949 Mil.
Property, Plant and Equipment(Net PPE) was $71,828 Mil.
Depreciation, Depletion and Amortization(DDA) was $9,002 Mil.
Selling, General & Admin. Expense(SGA) was $802 Mil.
Total Current Liabilities was $8,287 Mil.
Long-Term Debt was $24,716 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)
=(3163 / 23872) / (4332 / 36020)
=0.13249832 / 0.12026652
=1.1017

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)
=(11088 / 36020) / (4037 / 23872)
=0.30782898 / 0.16911025
=1.8203

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 - (9641 + 61649) / 94284) / (1 - (9664 + 71828) / 105949)
=0.24388019 / 0.23083748
=1.0565

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
=23872 / 36020
=0.6627

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))
=(9002 / (9002 + 71828)) / (9383 / (9383 + 61649))
=0.11136954 / 0.13209539
=0.8431

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)
=(839 / 23872) / (802 / 36020)
=0.03514578 / 0.02226541
=1.5785

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)
=((27353 + 7537) / 94284) / ((24716 + 8287) / 105949)
=0.37005218 / 0.31149893
=1.188

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
=(-7030 - -2565 - 4556) / 94284
=-0.0957

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 -2.86 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 local exchange's currency.

ConocoPhillips Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.14911.12380.57951.77980.80033.60410.57570.98630.84651.1599
GMI 0.86611.01171.16331.05810.98030.59010.90181.03791.15131.7145
AQI 1.06211.1090.741.0670.87961.01310.87221.00431.00611.0219
SGI 1.02811.03171.26570.6191.30360.33260.93850.93940.95310.5572
DEPI 0.92640.91360.87971.01170.96891.31830.84190.96210.93160.8244
SGAI 1.10710.97020.85040.8290.84051.29721.36240.82190.9032.3269
LVGI 1.00120.8831.28890.97280.96281.0121.00620.940.94921.1528
TATA -0.0359-0.0719-0.2763-0.0615-0.044-0.0469-0.0465-0.0536-0.0758-0.1
M-score -2.56-2.59-4.02-2.29-2.62-1.13-3.33-2.73-2.91-3.11

ConocoPhillips Quarterly Data

Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16Jun16Sep16
DSRI 0.9690.95690.84650.8010.91730.93031.15991.18511.01161.1017
GMI 1.06821.12231.13951.16921.26261.44431.71451.87622.08811.8203
AQI 1.05711.041.00611.06441.01811.01941.02191.01041.04971.0565
SGI 1.00550.95090.95310.79590.68820.62480.55720.58870.60010.6627
DEPI 0.99070.98270.93160.8910.87910.85250.82440.84360.83810.8431
SGAI 0.98681.08620.9031.02711.15471.51012.32692.33792.17421.5785
LVGI 0.90750.90460.94920.94981.01811.10181.15281.25161.20681.188
TATA -0.0628-0.0638-0.0757-0.0584-0.063-0.0843-0.1-0.097-0.103-0.0957
M-score -2.71-2.77-2.92-3.00-3.03-3.17-3.11-2.99-3.00-2.86
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