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Chevron Corp (NYSE:CVX)
Beneish M-Score
-2.73 (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 -2.73 suggests that the company is not a manipulator.

CVX' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -0.9
Current: -2.73

-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 * 1.097+0.528 * 1.0206+0.404 * 0.9742+0.892 * 0.9703+0.115 * 1.0423
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0521+4.679 * -0.0649-0.327 * 1.0202
=-2.73

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

This Year (Jun14) TTM:Last Year (Jun13) TTM:
Accounts Receivable was $21,578 Mil.
Revenue was 57938 + 53265 + 56158 + 58503 = $225,864 Mil.
Gross Profit was 23400 + 22027 + 24602 + 23122 = $93,151 Mil.
Total Current Assets was $48,920 Mil.
Total Assets was $262,045 Mil.
Property, Plant and Equipment(Net PPE) was $174,054 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,265 Mil.
Selling, General & Admin. Expense(SGA) was $29,274 Mil.
Total Current Liabilities was $36,328 Mil.
Long-Term Debt was $20,050 Mil.
Net Income was 5665 + 4512 + 4930 + 4950 = $20,057 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 7881 + 8417 + 10452 + 10316 = $37,066 Mil.
Accounts Receivable was $20,273 Mil.
Revenue was 57369 + 56818 + 60552 + 58044 = $232,783 Mil.
Gross Profit was 22767 + 23661 + 27964 + 23587 = $97,979 Mil.
Total Current Assets was $56,104 Mil.
Total Assets was $244,048 Mil.
Property, Plant and Equipment(Net PPE) was $150,592 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,817 Mil.
Selling, General & Admin. Expense(SGA) was $28,678 Mil.
Total Current Liabilities was $33,413 Mil.
Long-Term Debt was $18,051 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)
=(21578 / 225864) / (20273 / 232783)
=0.09553537 / 0.08708969
=1.097

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)
=(22027 / 232783) / (23400 / 225864)
=0.42090273 / 0.41242075
=1.0206

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 - (48920 + 174054) / 262045) / (1 - (56104 + 150592) / 244048)
=0.14910035 / 0.15305186
=0.9742

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
=225864 / 232783
=0.9703

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))
=(13817 / (13817 + 150592)) / (15265 / (15265 + 174054))
=0.08404041 / 0.0806311
=1.0423

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)
=(29274 / 225864) / (28678 / 232783)
=0.12960897 / 0.12319628
=1.0521

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)
=((20050 + 36328) / 262045) / ((18051 + 33413) / 244048)
=0.21514625 / 0.21087655
=1.0202

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
=(20057 - 0 - 37066) / 262045
=-0.0649

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 -2.73 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

Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14
DSRI 0.85160.82511.05541.01051.06571.04171.04331.08850.97551.097
GMI 1.04710.9750.92061.03120.95911.01441.07180.96421.02881.0206
AQI 0.96310.95760.98080.96010.95370.97820.96050.98870.98240.9742
SGI 1.17031.06310.97410.95350.93680.93970.96640.9460.94650.9703
DEPI 1.11961.12761.0991.09921.09961.09031.09461.09371.06381.0423
SGAI 0.93351.23871.6090.87861.13650.96260.79441.3931.10931.0521
LVGI 0.90760.87210.98560.95840.98071.08781.0291.0531.09561.0202
TATA -0.0582-0.0559-0.0487-0.0542-0.0432-0.0439-0.0548-0.0535-0.0695-0.0649
M-score -2.67-2.86-2.82-2.72-2.72-2.71-2.67-2.79-2.91-2.73
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