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Occidental Petroleum Corp (NYSE:OXY)
Beneish M-Score
-3.59 (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.

Occidental Petroleum Corp has a M-score of -3.59 suggests that the company is not a manipulator.

OXY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.81   Max: -0.95
Current: -3.59

-3.81
-0.95

During the past 13 years, the highest Beneish M-Score of Occidental Petroleum Corp was -0.95. The lowest was -3.81. And the median was -2.73.


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 Occidental Petroleum 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 * 1.5284+0.528 * 1.2432+0.404 * 1.0161+0.892 * 0.5929+0.115 * 0.7596
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.387+4.679 * -0.2577-0.327 * 1.2103
=-3.59

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

This Year (Mar16) TTM:Last Year (Mar15) TTM:
Accounts Receivable was $2,780 Mil.
Revenue was 2281 + 2843 + 3246 + 3514 = $11,884 Mil.
Gross Profit was 1000 + 1489 + 1833 + 2034 = $6,356 Mil.
Total Current Assets was $8,237 Mil.
Total Assets was $42,018 Mil.
Property, Plant and Equipment(Net PPE) was $31,505 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,617 Mil.
Selling, General & Admin. Expense(SGA) was $1,231 Mil.
Total Current Liabilities was $6,826 Mil.
Long-Term Debt was $5,608 Mil.
Net Income was 78 + -5178 + -2609 + 176 = $-7,533 Mil.
Non Operating Income was -98 + -30 + -31 + -26 = $-185 Mil.
Cash Flow from Operations was 689 + 965 + 1020 + 805 = $3,479 Mil.
Accounts Receivable was $3,068 Mil.
Revenue was 3096 + 6314 + 4930 + 5705 = $20,045 Mil.
Gross Profit was 1539 + 4581 + 3194 + 4014 = $13,328 Mil.
Total Current Assets was $10,434 Mil.
Total Assets was $53,389 Mil.
Property, Plant and Equipment(Net PPE) was $40,109 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,313 Mil.
Selling, General & Admin. Expense(SGA) was $1,497 Mil.
Total Current Liabilities was $6,915 Mil.
Long-Term Debt was $6,139 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)
=(2780 / 11884) / (3068 / 20045)
=0.23392797 / 0.15305562
=1.5284

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)
=(13328 / 20045) / (6356 / 11884)
=0.66490397 / 0.53483676
=1.2432

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 - (8237 + 31505) / 42018) / (1 - (10434 + 40109) / 53389)
=0.05416726 / 0.05330686
=1.0161

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
=11884 / 20045
=0.5929

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))
=(4313 / (4313 + 40109)) / (4617 / (4617 + 31505))
=0.09709153 / 0.12781684
=0.7596

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)
=(1231 / 11884) / (1497 / 20045)
=0.10358465 / 0.07468197
=1.387

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)
=((5608 + 6826) / 42018) / ((6139 + 6915) / 53389)
=0.2959208 / 0.2445073
=1.2103

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
=(-7533 - -185 - 3479) / 42018
=-0.2577

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.

Occidental Petroleum Corp has a M-score of -3.59 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.

Occidental Petroleum Corp Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.96031.35760.51242.06920.9970.85160.90621.08770.86931.2204
GMI 1.00190.98450.94791.07170.95570.97681.03130.93791.02341.2709
AQI 0.85490.68821.12121.11180.9630.86740.88070.8011.4261.1684
SGI 1.11691.1021.22320.63441.23351.2591.00561.06110.85280.5786
DEPI 1.02050.93961.07140.85151.14541.09010.9140.91210.90250.7713
SGAI 0.85961.06740.62981.68660.82310.86651.04611.05940.97861.4603
LVGI 0.82410.97220.89851.03841.2060.93280.96860.99311.2111.1787
TATA -0.0552-0.0286-0.092-0.0687-0.0941-0.089-0.1033-0.0996-0.1835-0.2547
M-score -2.64-2.34-3.03-2.21-2.77-2.81-3.08-2.94-3.48-3.80

Occidental Petroleum Corp Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 1.08581.011.11620.97350.72460.60080.76880.81251.22041.5284
GMI 0.97030.93220.85010.79551.081.06621.22231.35661.18891.2432
AQI 0.8010.8240.87070.99691.4261.58351.57081.52671.16841.0161
SGI 1.0631.03730.99970.90131.02310.97580.88710.87020.57860.5929
DEPI 0.921.01321.14521.29210.72290.67350.61060.50260.77130.7596
SGAI 1.06331.06810.94440.92910.95151.04511.13781.1971.46031.387
LVGI 0.99310.96670.98711.00511.2111.12421.21061.24941.17871.2103
TATA -0.0975-0.097-0.0779-0.0689-0.1751-0.1685-0.1597-0.2173-0.2472-0.2577
M-score -2.91-3.00-2.84-2.98-3.41-3.47-3.33-3.56-3.81-3.59
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