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ConocoPhillips (NYSE:COP)
Beneish M-Score
-2.89 (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 -2.89 suggests that the company is not a manipulator.

COP' s Beneish M-Score Range Over the Past 10 Years
Min: -4.33   Max: -0.26
Current: -2.89

-4.33
-0.26

During the past 13 years, the highest Beneish M-Score of ConocoPhillips was -0.26. The lowest was -4.33. And the median was -2.58.


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 * 1.1851+0.528 * 2.0847+0.404 * 1.0104+0.892 * 0.5887+0.115 * 0.8436
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 2.3379+4.679 * -0.0981-0.327 * 1.2516
=-2.89

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $3,753 Mil.
Revenue was 5015 + 6766 + 7507 + 8660 = $27,948 Mil.
Gross Profit was 1436 + -1698 + 2404 + 3632 = $5,774 Mil.
Total Current Assets was $10,934 Mil.
Total Assets was $99,834 Mil.
Property, Plant and Equipment(Net PPE) was $66,000 Mil.
Depreciation, Depletion and Amortization(DDA) was $9,229 Mil.
Selling, General & Admin. Expense(SGA) was $980 Mil.
Total Current Liabilities was $8,825 Mil.
Long-Term Debt was $27,376 Mil.
Net Income was -1469 + -3450 + -1071 + -179 = $-6,169 Mil.
Non Operating Income was -152 + -2350 + 72 + -70 = $-2,500 Mil.
Cash Flow from Operations was 421 + 1596 + 1934 + 2172 = $6,123 Mil.
Accounts Receivable was $5,379 Mil.
Revenue was 8002 + 11851 + 12917 + 14701 = $47,471 Mil.
Gross Profit was 2963 + 4134 + 6173 + 7176 = $20,446 Mil.
Total Current Assets was $10,840 Mil.
Total Assets was $110,042 Mil.
Property, Plant and Equipment(Net PPE) was $74,220 Mil.
Depreciation, Depletion and Amortization(DDA) was $8,568 Mil.
Selling, General & Admin. Expense(SGA) was $712 Mil.
Total Current Liabilities was $9,563 Mil.
Long-Term Debt was $22,318 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)
=(3753 / 27948) / (5379 / 47471)
=0.1342851 / 0.11331128
=1.1851

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)
=(-1698 / 47471) / (1436 / 27948)
=0.43070506 / 0.20659797
=2.0847

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 - (10934 + 66000) / 99834) / (1 - (10840 + 74220) / 110042)
=0.22938077 / 0.22702241
=1.0104

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
=27948 / 47471
=0.5887

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))
=(8568 / (8568 + 74220)) / (9229 / (9229 + 66000))
=0.10349326 / 0.12267875
=0.8436

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)
=(980 / 27948) / (712 / 47471)
=0.03506512 / 0.01499863
=2.3379

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)
=((27376 + 8825) / 99834) / ((22318 + 9563) / 110042)
=0.36261194 / 0.28971665
=1.2516

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
=(-6169 - -2500 - 6123) / 99834
=-0.0981

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 -2.89 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 1.29270.99890.57951.77450.92060.73252.53980.95910.84651.1599
GMI 1.20160.71951.16331.0490.98881.20770.46380.9861.05521.8705
AQI 1.06211.1090.741.07490.87311.01310.87221.00431.00611.0219
SGI 0.91391.16061.26570.62081.29981.26460.24680.93940.95310.5572
DEPI 0.92640.91360.87971.01170.96891.14820.91691.01420.93160.8244
SGAI 1.20571.15290.85040.82660.84290.81952.15650.82190.9032.3269
LVGI 1.00120.8831.28890.96990.96571.0121.00620.940.94921.1528
TATA -0.0655-0.0719-0.2763-0.0584-0.044-0.0534-0.053-0.0592-0.0852-0.1
M-score -2.51-2.78-4.02-2.28-2.51-2.58-2.53-2.80-3.00-3.03

ConocoPhillips Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.6070.95690.95750.93970.84650.8010.91730.93031.15991.1851
GMI 0.69291.00160.98481.01211.06811.05151.12211.24861.8482.0847
AQI 1.00430.97921.05711.041.00611.06441.01811.01941.02191.0104
SGI 0.56070.9911.01760.96820.95310.79590.68820.62480.55720.5887
DEPI 1.01421.00621.02820.97460.93160.8910.87910.85250.82440.8436
SGAI 1.04040.9310.97611.06930.9031.02711.15471.51012.32692.3379
LVGI 0.940.92990.90750.90460.94920.94981.01811.10181.15281.2516
TATA -0.0592-0.0713-0.069-0.0728-0.0852-0.0667-0.0722-0.0913-0.099-0.0981
M-score -2.74-2.83-2.77-2.87-3.00-3.10-3.15-3.30-3.03-2.89
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