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Chevron Corp (NYSE:CVX)
Beneish M-Score
-3.09 (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 -3.09 suggests that the company is not a manipulator.

CVX' s Beneish M-Score Range Over the Past 10 Years
Min: -3.68   Max: -1.15
Current: -3.09

-3.68
-1.15

During the past 13 years, the highest Beneish M-Score of Chevron Corp was -1.15. The lowest was -3.68. And the median was -2.77.


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 * 1.0192+0.528 * 0.907+0.404 * 1.0127+0.892 * 0.6995+0.115 * 0.8143
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.3712+4.679 * -0.0475-0.327 * 1.0287
=-3.09

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $14,240 Mil.
Revenue was 34315 + 40357 + 34558 + 46088 = $155,318 Mil.
Gross Profit was 11276 + 13739 + 17365 + 15253 = $57,633 Mil.
Total Current Assets was $39,819 Mil.
Total Assets was $268,449 Mil.
Property, Plant and Equipment(Net PPE) was $187,405 Mil.
Depreciation, Depletion and Amortization(DDA) was $20,510 Mil.
Selling, General & Admin. Expense(SGA) was $9,903 Mil.
Total Current Liabilities was $30,144 Mil.
Long-Term Debt was $29,296 Mil.
Net Income was 2037 + 571 + 2567 + 3471 = $8,646 Mil.
Non Operating Income was 0 + 0 + 0 + 0 = $0 Mil.
Cash Flow from Operations was 5360 + 7220 + 2319 + 6497 = $21,396 Mil.
Accounts Receivable was $19,974 Mil.
Revenue was 54679 + 57938 + 53265 + 56158 = $222,040 Mil.
Gross Profit was 17535 + 17807 + 22442 + 16946 = $74,730 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 $10,325 Mil.
Total Current Liabilities was $37,088 Mil.
Long-Term Debt was $20,044 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)
=(14240 / 155318) / (19974 / 222040)
=0.09168287 / 0.08995676
=1.0192

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)
=(13739 / 222040) / (11276 / 155318)
=0.33656098 / 0.37106453
=0.907

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 - (39819 + 187405) / 268449) / (1 - (47083 + 178096) / 265431)
=0.15356734 / 0.1516477
=1.0127

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
=155318 / 222040
=0.6995

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))
=(15555 / (15555 + 178096)) / (20510 / (20510 + 187405))
=0.08032491 / 0.09864608
=0.8143

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)
=(9903 / 155318) / (10325 / 222040)
=0.06375951 / 0.04650063
=1.3712

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)
=((29296 + 30144) / 268449) / ((20044 + 37088) / 265431)
=0.22142008 / 0.21524238
=1.0287

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
=(8646 - 0 - 21396) / 268449
=-0.0475

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 -3.09 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 0.96771.21110.57161.77590.98210.8481.01051.08850.83570
GMI 0.92061.00041.06041.10410.79311.04420.99671.06910.9610.637
AQI 0.93710.99960.98660.92020.9050.9440.96010.98871.00196.549
SGI 1.06011.05131.23590.62871.1941.2380.95350.9460.92620.6533
DEPI 0.86430.98561.06040.84321.00381.16631.09921.09370.94360.084
SGAI 0.99511.10670.78591.2510.88190.8041.04411.00921.07589.3591
LVGI 0.92180.98480.88240.93370.9880.95020.95841.0531.00560.6895
TATA -0.0936-0.0881-0.0354-0.1033-0.0667-0.0678-0.0542-0.0535-0.046-0.0559
M-score -2.95-2.67-2.72-2.60-2.76-2.65-2.77-2.67-2.95-3.36

Chevron Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.04331.08850.97551.0970.96950.83570.87580.96241.01920
GMI 0.86711.13960.99050.95530.92860.88170.93180.91070.9070.8363
AQI 0.96050.98870.98240.97421.00481.00191.02981.01821.01276.549
SGI 0.96640.9460.94650.97030.9520.92620.85780.77780.69950.6533
DEPI 1.09461.09371.06381.04231.02670.94360.95920.82050.81430.084
SGAI -0.82760.48122.31142.29472.40172.51761.10381.23611.37122.3008
LVGI 1.0291.0531.09561.02021.03531.00561.02271.0041.02870.6895
TATA -0.0548-0.0535-0.0695-0.0649-0.0555-0.046-0.03-0.047-0.0475-0.0559
M-score -2.50-2.55-3.14-2.98-3.10-3.24-2.92-3.04-3.09-2.04
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