Switch to:
Total SA (NYSE:TOT)
Beneish M-Score
-3.06 (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.

Total SA has a M-score of -2.99 suggests that the company is not a manipulator.

TOT' s Beneish M-Score Range Over the Past 10 Years
Min: -4.54   Max: -1.31
Current: -3.06

-4.54
-1.31

During the past 13 years, the highest Beneish M-Score of Total SA was -1.31. The lowest was -4.54. And the median was -2.85.


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 Total SA 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 * 1.1454+0.528 * 0.8774+0.404 * 1.0155+0.892 * 0.6902+0.115 * 1.2664
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.8671+4.679 * -0.0785-0.327 * 0.9812
=-2.99

* 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 $12,220 Mil.
Revenue was 27522 + 32292 + 34897 + 39269 = $133,980 Mil.
Gross Profit was 9883 + 10418 + 10657 + 12916 = $43,874 Mil.
Total Current Assets was $66,667 Mil.
Total Assets was $224,159 Mil.
Property, Plant and Equipment(Net PPE) was $111,636 Mil.
Depreciation, Depletion and Amortization(DDA) was $17,645 Mil.
Selling, General & Admin. Expense(SGA) was $12,167 Mil.
Total Current Liabilities was $48,261 Mil.
Long-Term Debt was $43,138 Mil.
Net Income was 1606 + -1626 + 1079 + 2971 = $4,030 Mil.
Non Operating Income was 964 + 1596 + 506 + 1131 = $4,197 Mil.
Cash Flow from Operations was 1881 + 4838 + 5989 + 4732 = $17,440 Mil.
Accounts Receivable was $15,458 Mil.
Revenue was 36963 + 46734 + 54222 + 56207 = $194,126 Mil.
Gross Profit was 13257 + 11090 + 15594 + 15836 = $55,777 Mil.
Total Current Assets was $76,199 Mil.
Total Assets was $227,921 Mil.
Property, Plant and Equipment(Net PPE) was $105,806 Mil.
Depreciation, Depletion and Amortization(DDA) was $22,109 Mil.
Selling, General & Admin. Expense(SGA) was $20,332 Mil.
Total Current Liabilities was $52,884 Mil.
Long-Term Debt was $41,827 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)
=(12220 / 133980) / (15458 / 194126)
=0.09120764 / 0.07962869
=1.1454

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)
=(55777 / 194126) / (43874 / 133980)
=0.2873237 / 0.32746679
=0.8774

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 - (66667 + 111636) / 224159) / (1 - (76199 + 105806) / 227921)
=0.20456908 / 0.20145577
=1.0155

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
=133980 / 194126
=0.6902

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))
=(22109 / (22109 + 105806)) / (17645 / (17645 + 111636))
=0.17284134 / 0.13648564
=1.2664

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)
=(12167 / 133980) / (20332 / 194126)
=0.09081206 / 0.1047361
=0.8671

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)
=((43138 + 48261) / 224159) / ((41827 + 52884) / 227921)
=0.40774183 / 0.4155431
=0.9812

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
=(4030 - 4197 - 17440) / 224159
=-0.0785

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.

Total SA has a M-score of -2.99 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.

Total SA Annual Data

Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14Dec15
DSRI 0.95691.13210.80481.33020.89180.76620.97050.96890.72561.0006
GMI 0.95130.83191.16490.83521.10751.08411.27421.00711.05730.8543
AQI 1.01050.9891.0070.9751.07391.01090.92951.03020.93261.0188
SGI 1.03351.32171.08240.7511.12581.13011.00720.98320.89450.6765
DEPI 1.01550.97041.06060.97670.85091.19250.8991.12040.71771.0883
SGAI 1.22840.7450.96751.33390.84870.89431.15741.0161.05831.2695
LVGI 1.01890.9820.95930.98711.00760.99410.98280.97061.07150.9853
TATA -0.06070.13780.08010.10660.06210.0535-0.0837-0.089-0.1118-0.0882
M-score -2.84-1.47-2.10-2.05-2.08-2.24-2.81-2.90-3.41-3.28

Total SA Quarterly Data

Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15Dec15Mar16
DSRI 0.9650.85030.86610.84150.71840.76950.84940.85151.00061.1454
GMI 1.03471.02921.04221.03161.05721.02120.97980.95170.84530.8774
AQI 1.0440.98080.96560.95550.93320.98270.93570.98631.01881.0155
SGI 0.95560.97460.98260.98040.93330.860.78210.70460.67650.6902
DEPI 1.14431.16931.13851.17140.69380.65450.67820.61931.08831.2664
SGAI 1.0361.03061.02340.79660.78430.79410.82331.18730.84890.8671
LVGI 0.96620.9781.04091.04651.07251.03181.0090.98790.98530.9812
TATA -0.085-0.0904-0.0899-0.0808-0.1116-0.1127-0.1089-0.1115-0.0884-0.0785
M-score -2.89-3.03-3.03-2.98-3.34-3.35-3.37-3.50-3.21-2.99
Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
FEEDBACK