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Occidental Petroleum Corp (NYSE:OXY)
Beneish M-Score
-3.52 (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 -3.52 suggests that the company is not a manipulator.

OXY' s 10-Year Beneish M-Score Range
Min: -3.52   Max: -0.96
Current: -3.52

-3.52
-0.96

During the past 13 years, the highest Beneish M-Score of Occidental Petroleum Corp was -0.96. The lowest was -3.52. 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 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 * 0.7246+0.528 * 1.0103+0.404 * 1.426+0.892 * 1.0231+0.115 * 0.7229
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9515+4.679 * -0.1899-0.327 * 1.211
=-3.52

* 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 $4,206 Mil.
Revenue was 2961 + 6022 + 6846 + 6118 = $21,947 Mil.
Gross Profit was 6038 + 2637 + 3549 + 2920 = $15,144 Mil.
Total Current Assets was $13,873 Mil.
Total Assets was $56,259 Mil.
Property, Plant and Equipment(Net PPE) was $39,730 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,261 Mil.
Selling, General & Admin. Expense(SGA) was $1,503 Mil.
Total Current Liabilities was $8,244 Mil.
Long-Term Debt was $6,838 Mil.
Net Income was -3413 + 1208 + 1431 + 1390 = $616 Mil.
Non Operating Income was 341 + -31 + -46 + -30 = $234 Mil.
Cash Flow from Operations was 2866 + 2638 + 2867 + 2697 = $11,068 Mil.
Accounts Receivable was $5,674 Mil.
Revenue was 2949 + 6475 + 6121 + 5907 = $21,452 Mil.
Gross Profit was 5983 + 3261 + 2941 + 2770 = $14,955 Mil.
Total Current Assets was $11,323 Mil.
Total Assets was $69,443 Mil.
Property, Plant and Equipment(Net PPE) was $55,821 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,203 Mil.
Selling, General & Admin. Expense(SGA) was $1,544 Mil.
Total Current Liabilities was $8,434 Mil.
Long-Term Debt was $6,939 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)
=(4206 / 21947) / (5674 / 21452)
=0.1916435 / 0.26449748
=0.7246

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)
=(2637 / 21452) / (6038 / 21947)
=0.6971378 / 0.69002597
=1.0103

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 - (13873 + 39730) / 56259) / (1 - (11323 + 55821) / 69443)
=0.04721022 / 0.03310629
=1.426

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
=21947 / 21452
=1.0231

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))
=(4203 / (4203 + 55821)) / (4261 / (4261 + 39730))
=0.07002199 / 0.09686072
=0.7229

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)
=(1503 / 21947) / (1544 / 21452)
=0.06848316 / 0.07197464
=0.9515

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)
=((6838 + 8244) / 56259) / ((6939 + 8434) / 69443)
=0.26808155 / 0.2213758
=1.211

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
=(616 - 234 - 11068) / 56259
=-0.1899

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 -3.52 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.00540.92271.32120.51242.15080.95910.85160.90621.30490.7246
GMI 0.92230.99330.95990.94631.05840.98660.97681.00970.97051.0103
AQI 0.70420.85490.68821.12121.11180.9630.86740.88070.8011.426
SGI 1.37921.16251.13231.22320.61041.28211.2591.00560.88451.0231
DEPI 1.06440.96340.92511.07140.975311.09010.9141.13870.7229
SGAI 0.99980.87970.89820.73621.65750.83760.86651.04611.08960.9515
LVGI 0.8650.82410.97220.89851.03841.2060.93280.96860.99311.211
TATA -0.0439-0.0759-0.0383-0.0914-0.0654-0.0939-0.0888-0.1033-0.0975-0.1835
M-score -2.45-2.75-2.37-3.05-2.13-2.77-2.81-3.10-2.85-3.49

Occidental Petroleum Corp Quarterly Data

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 1.0640.90620.90181.05291.03161.30491.15471.20650.98760.7246
GMI 1.05011.00971.01320.98410.95640.97050.95180.9450.97161.0103
AQI 0.84470.88070.92140.90530.84860.8010.8240.87070.99691.426
SGI 1.0421.00560.969711.02350.88450.90730.92490.88841.0231
DEPI 0.96350.9140.91930.90660.91121.13871.16281.20971.24870.7229
SGAI 0.99411.04611.06191.17641.08041.08961.08670.96870.96050.9515
LVGI 1.04720.96860.99240.93830.96630.99310.96670.98711.00511.211
TATA -0.0935-0.1033-0.1028-0.1051-0.1137-0.0975-0.097-0.0846-0.0755-0.1899
M-score -2.88-3.10-3.12-2.99-3.06-2.85-2.96-2.80-2.93-3.52
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