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Occidental Petroleum Corp (NYSE:OXY)
Beneish M-Score
-2.97 (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 -2.97 suggests that the company is not a manipulator.

OXY' s 10-Year Beneish M-Score Range
Min: -3.41   Max: -0.96
Current: -2.97

-3.41
-0.96

During the past 13 years, the highest Beneish M-Score of Occidental Petroleum Corp was -0.96. The lowest was -3.41. 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 * 0.8262+0.528 * 0.9371+0.404 * 0.9969+0.892 * 1.0619+0.115 * 1.0018
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.939+4.679 * -0.0776-0.327 * 1.0051
=-2.97

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

This Year (Sep14) TTM:Last Year (Sep13) TTM:
Accounts Receivable was $4,960 Mil.
Revenue was 6022 + 6846 + 6118 + 7233 = $26,219 Mil.
Gross Profit was 2637 + 3549 + 2920 + 9202 = $18,308 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 $5,394 Mil.
Selling, General & Admin. Expense(SGA) was $1,781 Mil.
Total Current Liabilities was $9,521 Mil.
Long-Term Debt was $6,837 Mil.
Net Income was 1208 + 1431 + 1390 + 1643 = $5,672 Mil.
Non Operating Income was -31 + -46 + -30 + -17 = $-124 Mil.
Cash Flow from Operations was 2638 + 2867 + 2697 + 3141 = $11,343 Mil.
Accounts Receivable was $5,653 Mil.
Revenue was 6475 + 6121 + 5907 + 6187 = $24,690 Mil.
Gross Profit was 3261 + 2941 + 2770 + 7184 = $16,156 Mil.
Total Current Assets was $11,938 Mil.
Total Assets was $69,437 Mil.
Property, Plant and Equipment(Net PPE) was $55,027 Mil.
Depreciation, Depletion and Amortization(DDA) was $5,087 Mil.
Selling, General & Admin. Expense(SGA) was $1,786 Mil.
Total Current Liabilities was $8,842 Mil.
Long-Term Debt was $6,961 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)
=(4960 / 26219) / (5653 / 24690)
=0.18917579 / 0.22895909
=0.8262

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)
=(3549 / 24690) / (2637 / 26219)
=0.65435399 / 0.69827225
=0.9371

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 - (10507 + 58465) / 71510) / (1 - (11938 + 55027) / 69437)
=0.03549154 / 0.03560062
=0.9969

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
=26219 / 24690
=1.0619

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))
=(5087 / (5087 + 55027)) / (5394 / (5394 + 58465))
=0.08462255 / 0.08446734
=1.0018

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)
=(1781 / 26219) / (1786 / 24690)
=0.06792784 / 0.07233698
=0.939

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)
=((6837 + 9521) / 71510) / ((6961 + 8842) / 69437)
=0.22875122 / 0.2275876
=1.0051

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
=(5672 - -124 - 11343) / 71510
=-0.0776

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 -2.97 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.64461.00540.92271.32120.51242.09450.98490.85160.90621.0877
GMI 0.98110.92230.99330.95990.94631.0640.96170.99681.03130.9379
AQI 1.17020.70420.85490.68821.12121.11770.9580.86740.88070.801
SGI 1.17771.37921.16251.13231.22320.63441.23351.2591.00561.0611
DEPI 0.98281.06440.96340.92511.07140.91381.06731.09010.9140.9121
SGAI 0.92340.99980.87970.89820.73621.68660.82310.86651.04611.0594
LVGI 0.88180.8650.82410.97220.89850.99261.26170.93280.96860.9931
TATA -0.0722-0.0439-0.0759-0.0383-0.0914-0.0655-0.0919-0.089-0.1033-0.0996
M-score -1.96-2.45-2.75-2.37-3.05-2.15-2.80-2.80-3.08-2.94

Occidental Petroleum Corp Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.79681.04350.90620.90181.05291.03161.08770.96411.01270.8262
GMI 1.07121.08771.03131.03571.00570.97680.93790.91930.91430.9371
AQI 0.81840.84470.88070.92140.90530.84860.8010.8240.87070.9969
SGI 1.1231.06251.00560.969711.02351.06111.08671.10191.0619
DEPI 0.92340.89730.9140.91930.90660.91120.91210.93170.96971.0018
SGAI 0.84541.01671.04611.06191.17641.08041.05941.05880.94870.939
LVGI 1.11211.04720.96860.99240.93830.96630.99310.96670.98711.0051
TATA -0.0972-0.0938-0.1033-0.1027-0.1051-0.1137-0.0996-0.0992-0.0868-0.0776
M-score -3.07-2.87-3.08-3.11-2.98-3.05-2.94-3.02-2.87-2.97
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