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Occidental Petroleum Corp (NYSE:OXY)
Beneish M-Score
-3.48 (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 -3.48 suggests that the company is not a manipulator.

OXY' s Beneish M-Score Range Over the Past 10 Years
Min: -3.48   Max: -0.96
Current: -3.48

-3.48
-0.96

During the past 13 years, the highest Beneish M-Score of Occidental Petroleum Corp was -0.96. The lowest was -3.48. And the median was -2.75.


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 * 0.8125+0.528 * 1.5124+0.404 * 1.5267+0.892 * 0.8702+0.115 * 0.5026
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.197+4.679 * -0.2179-0.327 * 1.2494
=-3.48

* 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 $3,507 Mil.
Revenue was 3246 + 3514 + 3096 + 6314 = $16,170 Mil.
Gross Profit was 1833 + 2034 + 510 + 4581 = $8,958 Mil.
Total Current Assets was $10,540 Mil.
Total Assets was $50,089 Mil.
Property, Plant and Equipment(Net PPE) was $36,835 Mil.
Depreciation, Depletion and Amortization(DDA) was $4,472 Mil.
Selling, General & Admin. Expense(SGA) was $1,352 Mil.
Total Current Liabilities was $7,433 Mil.
Long-Term Debt was $6,882 Mil.
Net Income was -2609 + 176 + -218 + -3413 = $-6,064 Mil.
Non Operating Income was -31 + -26 + -324 + -22 = $-403 Mil.
Cash Flow from Operations was 1020 + 805 + 561 + 2866 = $5,252 Mil.
Accounts Receivable was $4,960 Mil.
Revenue was 4930 + 5705 + 4998 + 2949 = $18,582 Mil.
Gross Profit was 3194 + 4014 + 2378 + 5983 = $15,569 Mil.
Total Current Assets was $10,507 Mil.
Total Assets was $71,510 Mil.
Property, Plant and Equipment(Net PPE) was $58,465 Mil.
Depreciation, Depletion and Amortization(DDA) was $3,364 Mil.
Selling, General & Admin. Expense(SGA) was $1,298 Mil.
Total Current Liabilities was $9,521 Mil.
Long-Term Debt was $6,837 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)
=(3507 / 16170) / (4960 / 18582)
=0.21688312 / 0.26692498
=0.8125

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)
=(2034 / 18582) / (1833 / 16170)
=0.83785384 / 0.55398887
=1.5124

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 - (10540 + 36835) / 50089) / (1 - (10507 + 58465) / 71510)
=0.05418355 / 0.03549154
=1.5267

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
=16170 / 18582
=0.8702

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))
=(3364 / (3364 + 58465)) / (4472 / (4472 + 36835))
=0.05440813 / 0.10826252
=0.5026

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)
=(1352 / 16170) / (1298 / 18582)
=0.08361163 / 0.06985255
=1.197

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)
=((6882 + 7433) / 50089) / ((6837 + 9521) / 71510)
=0.28579129 / 0.22875122
=1.2494

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
=(-6064 - -403 - 5252) / 50089
=-0.2179

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 -3.48 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 0.92271.32120.51242.15080.95910.85161.08911.08580.72461.2204
GMI 0.99330.95990.96471.06560.96110.96181.02570.97031.01031.2709
AQI 0.85490.68821.12121.11180.9630.86740.88070.8011.4261.1612
SGI 1.16251.13231.22320.61041.28211.2590.83671.0631.02310.5786
DEPI 0.96340.92511.07140.975311.09011.13120.920.72290.7713
SGAI 0.87970.89820.73621.65750.83760.86651.0721.06330.95151.4603
LVGI 0.82410.97220.89851.03841.2060.93280.96860.99311.2111.1714
TATA -0.0759-0.0383-0.0914-0.0654-0.0939-0.0888-0.1031-0.0975-0.1835-0.2509
M-score -2.75-2.37-3.04-2.12-2.78-2.82-3.05-2.91-3.49-3.78

Occidental Petroleum Corp Quarterly Data

Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15
DSRI 1.23531.08581.011.11620.97350.72460.60080.76880.81251.2204
GMI 0.9750.97030.93220.85010.79551.081.15541.34411.51241.3974
AQI 0.84860.8010.8240.87070.99691.4261.58351.57081.52671.1612
SGI 0.85471.0631.03730.99970.90131.02310.97580.88710.87020.5786
DEPI 1.09680.921.01321.14521.29210.72290.67350.61060.50260.7713
SGAI 1.12291.06331.06810.94440.92910.95151.04511.13781.1971.4603
LVGI 0.96630.99310.96670.98711.00511.2111.12421.21061.24941.1714
TATA -0.1136-0.0975-0.097-0.0786-0.0695-0.1759-0.17-0.1603-0.2179-0.2438
M-score -3.00-2.91-3.00-2.84-2.98-3.41-3.43-3.27-3.48-3.68
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