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Chevron Corp (NYSE:CVX)
Beneish M-Score
-2.91 (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 -2.91 suggests that the company is not a manipulator.

CVX' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -0.9
Current: -2.91

-3.41
-0.9

During the past 13 years, the highest Beneish M-Score of Chevron Corp was -0.90. The lowest was -3.41. 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 * 0.9755+0.528 * 1.0288+0.404 * 0.9824+0.892 * 0.9465+0.115 * 1.0638
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1093+4.679 * -0.0695-0.327 * 1.0956
=-2.91

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $20,285 Mil.
Revenue was 53265 + 56158 + 58503 + 57369 = $225,295 Mil.
Gross Profit was 22027 + 24602 + 23122 + 22767 = $92,518 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.
Net Income was 4512 + 4930 + 4950 + 5365 = $19,757 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 8417 + 10452 + 10316 + 8520 = $37,705 Mil.
Accounts Receivable was $21,969 Mil.
Revenue was 56818 + 60552 + 58044 + 62608 = $238,022 Mil.
Gross Profit was 23661 + 27964 + 23587 + 25343 = $100,555 Mil.
Total Current Assets was $54,696 Mil.
Total Assets was $237,410 Mil.
Property, Plant and Equipment(Net PPE) was $145,973 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,689 Mil.
Selling, General & Admin. Expense(SGA) was $27,931 Mil.
Total Current Liabilities was $34,685 Mil.
Long-Term Debt was $12,053 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)
=(20285 / 225295) / (21969 / 238022)
=0.09003751 / 0.09229819
=0.9755

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)
=(24602 / 238022) / (22027 / 225295)
=0.42246095 / 0.4106527
=1.0288

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 - (49749 + 169227) / 258238) / (1 - (54696 + 145973) / 237410)
=0.15203804 / 0.15475759
=0.9824

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
=225295 / 238022
=0.9465

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))
=(13689 / (13689 + 145973)) / (14835 / (14835 + 169227))
=0.08573737 / 0.08059784
=1.0638

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)
=(29327 / 225295) / (27931 / 238022)
=0.13017155 / 0.1173463
=1.1093

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)
=((20046 + 35652) / 258238) / ((12053 + 34685) / 237410)
=0.21568476 / 0.19686618
=1.0956

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
=(19757 - 0 - 37705) / 258238
=-0.0695

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 -2.91 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 0.99841.08330.96771.21110.57161.77590.98210.8481.01051.0885
GMI 1.04011.12150.92061.00041.0760.94860.71241.05520.97841.0163
AQI 1.01091.01730.93710.99960.98660.92020.9050.9440.96010.9887
SGI 1.28051.27621.06011.05131.23590.62871.1941.2380.95350.946
DEPI 1.0691.17610.86430.98561.06040.84321.00381.16631.09921.0937
SGAI 0.80150.83010.99511.10670.78591.2514.43190.891.08451.1285
LVGI 0.94680.94060.92180.98480.88240.93370.9880.95020.95841.053
TATA -0.0622-0.084-0.0936-0.0881-0.0354-0.054-0.0667-0.0678-0.0542-0.0535
M-score -2.44-2.41-2.95-2.67-2.71-2.45-3.41-2.66-2.78-2.72

Chevron Corp Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 0.8480.85160.82511.05541.01051.06571.04171.04331.08850.9755
GMI 1.05521.04710.9750.92061.03120.95911.01441.07180.96421.0288
AQI 0.9440.96310.95760.98080.96010.95370.97820.96050.98870.9824
SGI 1.2381.17031.06310.97410.95350.93680.93970.96640.9460.9465
DEPI 1.16631.11961.12761.0991.09921.09961.09031.09461.09371.0638
SGAI 0.890.93351.23871.6090.87861.13650.96260.79441.3931.1093
LVGI 0.95020.90760.87210.98560.95840.98071.08781.0291.0531.0956
TATA -0.0678-0.0582-0.0559-0.0487-0.0542-0.0432-0.0439-0.0548-0.0535-0.0695
M-score -2.66-2.67-2.86-2.82-2.72-2.72-2.71-2.67-2.79-2.91
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