Switch to:
Chevron Corp (NYSE:CVX)
Beneish M-Score
-2.97 (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 -2.97 suggests that the company is not a manipulator.

CVX' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -0.9
Current: -2.97

-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 * 0.8357+0.528 * 0.9448+0.404 * 1.0019+0.892 * 0.9262+0.115 * 0.9436
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.1034+4.679 * -0.046-0.327 * 1.0056
=-2.97

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $16,736 Mil.
Revenue was 46088 + 54679 + 57938 + 53265 = $211,970 Mil.
Gross Profit was 23300 + 23572 + 23400 + 22027 = $92,299 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 $29,779 Mil.
Total Current Liabilities was $31,926 Mil.
Long-Term Debt was $24,028 Mil.
Net Income was 3471 + 5593 + 5665 + 4512 = $19,241 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 6497 + 8680 + 7881 + 8417 = $31,475 Mil.
Accounts Receivable was $21,622 Mil.
Revenue was 56158 + 58503 + 57369 + 56818 = $228,848 Mil.
Gross Profit was 24602 + 23122 + 22767 + 23661 = $94,152 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 $29,137 Mil.
Total Current Liabilities was $33,018 Mil.
Long-Term Debt was $20,057 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)
=(16736 / 211970) / (21622 / 228848)
=0.07895457 / 0.09448193
=0.8357

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)
=(23572 / 228848) / (23300 / 211970)
=0.41141719 / 0.43543426
=0.9448

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 - (42232 + 183173) / 266026) / (1 - (50250 + 164829) / 253753)
=0.1526956 / 0.15240805
=1.0019

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
=211970 / 228848
=0.9262

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))
=(14186 / (14186 + 164829)) / (16793 / (16793 + 183173))
=0.07924476 / 0.08397928
=0.9436

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)
=(29779 / 211970) / (29137 / 228848)
=0.14048686 / 0.12732032
=1.1034

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)
=((24028 + 31926) / 266026) / ((20057 + 33018) / 253753)
=0.21033282 / 0.20916009
=1.0056

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
=(19241 - 0 - 31475) / 266026
=-0.046

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 -2.97 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.08330.96771.21110.57161.77590.98210.8481.01051.08850.8357
GMI 1.12150.92061.00041.0760.94860.71241.05520.97841.01630.9448
AQI 1.01730.93710.99960.98660.92020.9050.9440.96010.98871.0019
SGI 1.27621.06011.05131.23590.62871.1941.2380.95350.9460.9262
DEPI 1.17610.86430.98561.06040.84321.00381.16631.09921.09370.9436
SGAI 0.83010.99511.10670.78591.2514.43190.891.08451.12851.1034
LVGI 0.94060.92180.98480.88240.93370.9880.95020.95841.0531.0056
TATA -0.084-0.0936-0.0881-0.0354-0.054-0.0667-0.0678-0.0542-0.0535-0.046
M-score -2.41-2.95-2.67-2.71-2.45-3.41-2.66-2.78-2.72-2.97

Chevron Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.05541.01051.06571.04171.04331.08850.97551.0970.96950.8357
GMI 0.92061.03120.95911.01441.07180.96421.02881.02060.99180.9448
AQI 0.98080.96010.95370.97820.96050.98870.98240.97421.00481.0019
SGI 0.97410.95350.93680.93970.96640.9460.94650.97030.9520.9262
DEPI 1.0991.09921.09961.09031.09461.09371.06381.04231.02670.9436
SGAI 1.6090.87861.13650.96260.79441.3931.10931.05211.07381.1034
LVGI 0.98560.95840.98071.08781.0291.0531.09561.02021.03531.0056
TATA -0.0487-0.0542-0.0432-0.0439-0.0548-0.0535-0.0695-0.0649-0.0555-0.046
M-score -2.82-2.72-2.72-2.71-2.67-2.79-2.91-2.73-2.83-2.97
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK