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Occidental Petroleum Corp (NYSE:OXY)
Beneish M-Score
-3.57 (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 -3.57 suggests that the company is not a manipulator.

OXY' s 10-Year Beneish M-Score Range
Min: -3.57   Max: -0.96
Current: -3.57

-3.57
-0.96

During the past 13 years, the highest Beneish M-Score of Occidental Petroleum Corp was -0.96. The lowest was -3.57. And the median was -2.74.


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 * 0.6364+0.528 * 1.0536+0.404 * 1.5835+0.892 * 0.9212+0.115 * 0.6735
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0544+4.679 * -0.1848-0.327 * 1.1242
=-3.57

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
Accounts Receivable was $3,068 Mil.
Revenue was 3096 + 2961 + 6022 + 6846 = $18,925 Mil.
Gross Profit was 510 + 6038 + 2637 + 3549 = $12,734 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 $1,426 Mil.
Total Current Liabilities was $6,915 Mil.
Long-Term Debt was $6,139 Mil.
Net Income was -218 + -3413 + 1208 + 1431 = $-992 Mil.
Non Operating Income was -324 + 341 + -31 + -46 = $-60 Mil.
Cash Flow from Operations was 561 + 2866 + 2638 + 2867 = $8,932 Mil.
Accounts Receivable was $5,233 Mil.
Revenue was 4998 + 2949 + 6475 + 6121 = $20,543 Mil.
Gross Profit was 2378 + 5983 + 3261 + 2941 = $14,563 Mil.
Total Current Assets was $10,899 Mil.
Total Assets was $69,275 Mil.
Property, Plant and Equipment(Net PPE) was $56,044 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,921 Mil.
Selling, General & Admin. Expense(SGA) was $1,468 Mil.
Total Current Liabilities was $8,190 Mil.
Long-Term Debt was $6,877 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)
=(3068 / 18925) / (5233 / 20543)
=0.16211361 / 0.25473397
=0.6364

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)
=(6038 / 20543) / (510 / 18925)
=0.70890328 / 0.67286658
=1.0536

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 - (10434 + 40109) / 53389) / (1 - (10899 + 56044) / 69275)
=0.05330686 / 0.03366294
=1.5835

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
=18925 / 20543
=0.9212

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))
=(3921 / (3921 + 56044)) / (4313 / (4313 + 40109))
=0.06538814 / 0.09709153
=0.6735

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)
=(1426 / 18925) / (1468 / 20543)
=0.07535007 / 0.07145986
=1.0544

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)
=((6139 + 6915) / 53389) / ((6877 + 8190) / 69275)
=0.2445073 / 0.21749549
=1.1242

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
=(-992 - -60 - 8932) / 53389
=-0.1848

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 -3.57 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

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.90620.90181.05291.03161.30491.21771.271.04080.76350.6364
GMI 1.00971.01320.98410.95640.97050.93620.92980.95630.99431.0536
AQI 0.88070.92140.90530.84860.8010.8240.87070.99691.4261.5835
SGI 1.00560.969711.02350.88450.86040.87860.84310.97090.9212
DEPI 0.9140.91930.90660.91121.13871.24251.20971.24870.72290.6735
SGAI 1.04611.06191.17641.08041.08961.0930.97280.9650.95531.0544
LVGI 0.96860.99240.93830.96630.99310.96670.98711.00511.2111.1242
TATA -0.1033-0.1028-0.1051-0.1137-0.0975-0.097-0.0846-0.0755-0.1899-0.1848
M-score -3.10-3.12-2.99-3.06-2.85-2.94-2.79-2.93-3.54-3.57
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