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Chevron Corp (NYSE:CVX)
Beneish M-Score
-2.83 (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 -2.83 suggests that the company is not a manipulator.

CVX' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -0.9
Current: -2.83

-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 * 0.9695+0.528 * 0.9918+0.404 * 1.0048+0.892 * 0.952+0.115 * 1.0267
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0738+4.679 * -0.0555-0.327 * 1.0353
=-2.83

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $19,974 Mil.
Revenue was 54679 + 57938 + 53265 + 56158 = $222,040 Mil.
Gross Profit was 23572 + 23400 + 22027 + 24602 = $93,601 Mil.
Total Current Assets was $47,083 Mil.
Total Assets was $265,431 Mil.
Property, Plant and Equipment(Net PPE) was $178,096 Mil.
Depreciation, Depletion and Amortization(DDA) was $15,555 Mil.
Selling, General & Admin. Expense(SGA) was $29,536 Mil.
Total Current Liabilities was $37,088 Mil.
Long-Term Debt was $20,044 Mil.
Net Income was 5593 + 5665 + 4512 + 4930 = $20,700 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 8680 + 7881 + 8417 + 10452 = $35,430 Mil.
Accounts Receivable was $21,641 Mil.
Revenue was 58503 + 57369 + 56818 + 60552 = $233,242 Mil.
Gross Profit was 23122 + 22767 + 23661 + 27964 = $97,514 Mil.
Total Current Assets was $53,503 Mil.
Total Assets was $247,838 Mil.
Property, Plant and Equipment(Net PPE) was $156,932 Mil.
Depreciation, Depletion and Amortization(DDA) was $14,105 Mil.
Selling, General & Admin. Expense(SGA) was $28,895 Mil.
Total Current Liabilities was $33,470 Mil.
Long-Term Debt was $18,054 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)
=(19974 / 222040) / (21641 / 233242)
=0.08995676 / 0.09278346
=0.9695

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)
=(23400 / 233242) / (23572 / 222040)
=0.41808079 / 0.42155017
=0.9918

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 - (47083 + 178096) / 265431) / (1 - (53503 + 156932) / 247838)
=0.1516477 / 0.15091713
=1.0048

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
=222040 / 233242
=0.952

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))
=(14105 / (14105 + 156932)) / (15555 / (15555 + 178096))
=0.08246754 / 0.08032491
=1.0267

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)
=(29536 / 222040) / (28895 / 233242)
=0.13302108 / 0.12388421
=1.0738

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)
=((20044 + 37088) / 265431) / ((18054 + 33470) / 247838)
=0.21524238 / 0.20789387
=1.0353

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
=(20700 - 0 - 35430) / 265431
=-0.0555

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 -2.83 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

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.82511.05541.01051.06571.04171.04331.08850.97551.0970.9695
GMI 0.9750.92061.03120.95911.01441.07180.96421.02881.02060.9918
AQI 0.95760.98080.96010.95370.97820.96050.98870.98240.97421.0048
SGI 1.06310.97410.95350.93680.93970.96640.9460.94650.97030.952
DEPI 1.12761.0991.09921.09961.09031.09461.09371.06381.04231.0267
SGAI 1.23871.6090.87861.13650.96260.79441.3931.10931.05211.0738
LVGI 0.87210.98560.95840.98071.08781.0291.0531.09561.02021.0353
TATA -0.0559-0.0487-0.0542-0.0432-0.0439-0.0548-0.0535-0.0695-0.0649-0.0555
M-score -2.86-2.82-2.72-2.72-2.71-2.67-2.79-2.91-2.73-2.83
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