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Chevron Corp (NYSE:CVX)
Beneish M-Score
-3.39 (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 -3.39 suggests that the company is not a manipulator.

CVX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.46   Max: 1.99
Current: -3.39

-3.46
1.99

During the past 13 years, the highest Beneish M-Score of Chevron Corp was 1.99. The lowest was -3.46. And the median was -2.55.


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 * 1.1762+0.528 * 0.857+0.404 * 1.0425+0.892 * 0.6533+0.115 * 0.8361
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 3.351+4.679 * -0.0559-0.327 * 1.0743
=-3.39

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

This Year (Dec15) TTM:Last Year (Dec14) TTM:
Accounts Receivable was $12,860 Mil.
Revenue was 29247 + 34315 + 40357 + 34558 = $138,477 Mil.
Gross Profit was 8707 + 11276 + 13739 + 17365 = $51,087 Mil.
Total Current Assets was $35,347 Mil.
Total Assets was $266,103 Mil.
Property, Plant and Equipment(Net PPE) was $188,396 Mil.
Depreciation, Depletion and Amortization(DDA) was $21,037 Mil.
Selling, General & Admin. Expense(SGA) was $9,838 Mil.
Total Current Liabilities was $26,464 Mil.
Long-Term Debt was $33,664 Mil.
Net Income was -588 + 2037 + 571 + 2567 = $4,587 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 4557 + 5360 + 7220 + 2319 = $19,456 Mil.
Accounts Receivable was $16,736 Mil.
Revenue was 46088 + 54679 + 57938 + 53265 = $211,970 Mil.
Gross Profit was 15253 + 17535 + 17807 + 16419 = $67,014 Mil.
Total Current Assets was $42,232 Mil.
Total Assets was $266,026 Mil.
Property, Plant and Equipment(Net PPE) was $183,173 Mil.
Depreciation, Depletion and Amortization(DDA) was $16,793 Mil.
Selling, General & Admin. Expense(SGA) was $4,494 Mil.
Total Current Liabilities was $31,926 Mil.
Long-Term Debt was $24,028 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)
=(12860 / 138477) / (16736 / 211970)
=0.09286741 / 0.07895457
=1.1762

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)
=(11276 / 211970) / (8707 / 138477)
=0.31614851 / 0.36892047
=0.857

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 - (35347 + 188396) / 266103) / (1 - (42232 + 183173) / 266026)
=0.15918648 / 0.1526956
=1.0425

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
=138477 / 211970
=0.6533

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))
=(16793 / (16793 + 183173)) / (21037 / (21037 + 188396))
=0.08397928 / 0.1004474
=0.8361

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)
=(9838 / 138477) / (4494 / 211970)
=0.07104429 / 0.02120111
=3.351

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)
=((33664 + 26464) / 266103) / ((24028 + 31926) / 266026)
=0.22595762 / 0.21033282
=1.0743

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
=(4587 - 0 - 19456) / 266103
=-0.0559

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 -3.39 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

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.96771.21110.57161.77590.98210.8481.01051.08850.83571.1762
GMI 0.92061.00041.06040.93870.93291.15820.89861.06910.9610.9581
AQI 0.93710.99960.98660.92020.9050.9440.96010.98871.00191.0425
SGI 1.06011.05131.23590.62871.1941.2380.95350.9460.92620.6533
DEPI 0.86430.98561.06040.84321.00381.16631.09921.09370.94360.8361
SGAI 0.99511.10670.78591.2510.88190.8041.04411.00921.07581.5134
LVGI 0.92180.98480.88240.93370.9880.95020.95841.0531.00561.0743
TATA -0.0536-0.0415-0.0354-0.054-0.0668-0.1064-0.0542-0.0535-0.046-0.0559
M-score -2.76-2.45-2.72-2.45-2.69-2.78-2.82-2.67-2.95-3.03

Chevron Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.08850.97551.0970.96950.83570.87580.96241.01921.17620
GMI 0.98731.08660.97060.86411.04060.85580.83740.83390.8570.9734
AQI 0.98870.98240.97421.00481.00191.02981.01821.01271.04256.3871
SGI 0.9460.94650.97030.9520.92620.85780.77780.69950.65330.6596
DEPI 1.09371.06381.04231.02670.94360.95920.82050.81430.83610.084
SGAI 2.29850.8748-26.5358-0.75080.47232.60152.9373.29083.3511.5154
LVGI 1.0531.09561.02021.03531.00561.02271.0041.02871.07430.7275
TATA -0.0535-0.0695-0.0649-0.0555-0.046-0.03-0.047-0.0475-0.0559-0.06
M-score -2.94-2.841.99-2.59-2.81-3.21-3.37-3.46-3.39-1.93
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