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Chevron Corp (NYSE:CVX)
Beneish M-Score
-2.94 (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.

Chevron Corp has a M-score of -2.94 suggests that the company is not a manipulator.

CVX' s 10-Year Beneish M-Score Range
Min: -3.85   Max: -0.9
Current: -2.94

-3.85
-0.9

During the past 13 years, the highest Beneish M-Score of Chevron Corp was -0.90. The lowest was -3.85. And the median was -2.72.


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 Chevron Corp 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 * 0.8758+0.528 * 0.9116+0.404 * 1.0298+0.892 * 0.8578+0.115 * 0.9592
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1594+4.679 * -0.03-0.327 * 1.0227
=-2.94

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $15,239 Mil.
Revenue was 34558 + 46088 + 54679 + 57938 = $193,263 Mil.
Gross Profit was 17365 + 21825 + 23938 + 24094 = $87,222 Mil.
Total Current Assets was $41,270 Mil.
Total Assets was $269,604 Mil.
Property, Plant and Equipment(Net PPE) was $186,123 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,074 Mil.
Selling, General & Admin. Expense(SGA) was $29,168 Mil.
Total Current Liabilities was $29,445 Mil.
Long-Term Debt was $30,025 Mil.
Net Income was 2567 + 3471 + 5593 + 5665 = $17,296 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 2319 + 6497 + 8680 + 7881 = $25,377 Mil.
Accounts Receivable was $20,285 Mil.
Revenue was 53265 + 56158 + 58503 + 57369 = $225,295 Mil.
Gross Profit was 22442 + 23467 + 23681 + 23096 = $92,686 Mil.
Total Current Assets was $49,749 Mil.
Total Assets was $258,238 Mil.
Property, Plant and Equipment(Net PPE) was $169,227 Mil.
Depreciation, Depletion and Amortization(DDA) was $14,835 Mil.
Selling, General & Admin. Expense(SGA) was $29,327 Mil.
Total Current Liabilities was $35,652 Mil.
Long-Term Debt was $20,046 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)
=(15239 / 193263) / (20285 / 225295)
=0.0788511 / 0.09003751
=0.8758

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)
=(21825 / 225295) / (17365 / 193263)
=0.41139839 / 0.45131246
=0.9116

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 - (41270 + 186123) / 269604) / (1 - (49749 + 169227) / 258238)
=0.15656667 / 0.15203804
=1.0298

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
=193263 / 225295
=0.8578

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))
=(14835 / (14835 + 169227)) / (17074 / (17074 + 186123))
=0.08059784 / 0.08402683
=0.9592

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)
=(29168 / 193263) / (29327 / 225295)
=0.15092387 / 0.13017155
=1.1594

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)
=((30025 + 29445) / 269604) / ((20046 + 35652) / 258238)
=0.22058278 / 0.21568476
=1.0227

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
=(17296 - 0 - 25377) / 269604
=-0.03

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.

Chevron Corp has a M-score of -2.94 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.

Chevron Corp Annual Data

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.08330.96771.21110.57161.77590.98210.8481.01051.08850.8357
GMI 1.12150.92061.00040.84340.88741.07610.95280.97841.01630.9448
AQI 1.01730.93710.99960.98660.92020.9050.9440.96010.98871.0019
SGI 1.27621.06011.05131.23590.62871.1941.2380.95350.9460.9262
DEPI 1.17610.86430.98561.06040.84321.00381.16631.09921.09370.9436
SGAI 0.83010.99511.10673.62541.3410.89630.891.08451.12851.1034
LVGI 0.94060.92180.98480.88240.93370.9880.95020.95841.0531.0056
TATA -0.084-0.0936-0.0881-0.0354-0.054-0.1133-0.0678-0.0542-0.0535-0.046
M-score -2.41-2.95-2.67-3.32-2.50-2.83-2.72-2.78-2.72-2.97

Chevron Corp Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 1.01051.06571.04171.04331.08850.97551.0970.96950.83570.8758
GMI 0.97840.96390.97130.97531.01631.02531.01140.98580.94480.9116
AQI 0.96010.95370.97820.96050.98870.98240.97421.00481.00191.0298
SGI 0.95350.93680.93970.96640.9460.94650.97030.9520.92620.8578
DEPI 1.09921.09961.09031.09461.09371.06381.04231.02670.94360.9592
SGAI 1.08451.13131.14891.10261.12851.10931.05211.07381.10341.1594
LVGI 0.95840.98071.08781.0291.0531.09561.02021.03531.00561.0227
TATA -0.0542-0.0432-0.0439-0.0548-0.0535-0.0695-0.0649-0.0555-0.046-0.03
M-score -2.78-2.72-2.77-2.77-2.72-2.91-2.74-2.84-2.97-2.94
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