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Chevron Corp (NYSE:CVX)
Beneish M-Score
-2.71 (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 -2.71 suggests that the company is not a manipulator.

CVX' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -0.9
Current: -2.71

-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 -2.71.


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 * 1.0885+0.528 * 1.027+0.404 * 0.9887+0.892 * 0.946+0.115 * 1.0937
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1175+4.679 * -0.0535-0.327 * 1.053
=-2.71

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $21,622 Mil.
Revenue was 56158 + 58503 + 57369 + 56818 = $228,848 Mil.
Gross Profit was 24602 + 23122 + 22767 + 17899 = $88,390 Mil.
Total Current Assets was $50,250 Mil.
Total Assets was $253,753 Mil.
Property, Plant and Equipment(Net PPE) was $164,829 Mil.
Depreciation, Depletion and Amortization(DDA) was $14,186 Mil.
Selling, General & Admin. Expense(SGA) was $23,375 Mil.
Total Current Liabilities was $33,018 Mil.
Long-Term Debt was $20,057 Mil.
Net Income was 4930 + 4950 + 5365 + 6178 = $21,423 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 10452 + 10316 + 8520 + 5714 = $35,002 Mil.
Accounts Receivable was $20,997 Mil.
Revenue was 60552 + 58044 + 62608 + 60705 = $241,909 Mil.
Gross Profit was 27964 + 23587 + 25343 + 19066 = $95,960 Mil.
Total Current Assets was $55,720 Mil.
Total Assets was $232,982 Mil.
Property, Plant and Equipment(Net PPE) was $141,348 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,413 Mil.
Selling, General & Admin. Expense(SGA) was $22,111 Mil.
Total Current Liabilities was $34,212 Mil.
Long-Term Debt was $12,065 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)
=(21622 / 228848) / (20997 / 241909)
=0.09448193 / 0.0867971
=1.0885

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)
=(23122 / 241909) / (24602 / 228848)
=0.39667809 / 0.3862389
=1.027

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 - (50250 + 164829) / 253753) / (1 - (55720 + 141348) / 232982)
=0.15240805 / 0.15414925
=0.9887

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
=228848 / 241909
=0.946

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))
=(13413 / (13413 + 141348)) / (14186 / (14186 + 164829))
=0.08666912 / 0.07924476
=1.0937

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)
=(23375 / 228848) / (22111 / 241909)
=0.10214203 / 0.09140214
=1.1175

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)
=((20057 + 33018) / 253753) / ((12065 + 34212) / 232982)
=0.20916009 / 0.19862908
=1.053

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
=(21423 - 0 - 35002) / 253753
=-0.0535

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 -2.71 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

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.93470.8480.85160.82511.05541.01051.06571.04171.04331.0885
GMI 0.78681.05521.04710.9750.92061.03121.01741.07781.13911.027
AQI 0.91620.9440.96310.95760.98080.96010.95370.97820.96050.9887
SGI 1.24141.2381.17031.06310.97410.95350.93680.93970.96640.946
DEPI 1.1251.16631.11961.12761.0991.09921.09961.09031.09461.0937
SGAI 4.12510.890.93351.23871.6090.87860.9020.76920.6361.1175
LVGI 0.97380.95020.90760.87210.98560.95840.98071.08781.0291.053
TATA -0.0647-0.0678-0.0582-0.0559-0.0487-0.0542-0.0432-0.0439-0.0548-0.0535
M-score -3.29-2.66-2.67-2.86-2.82-2.72-2.65-2.65-2.61-2.71
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