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Total SA (NYSE:TOT)
Beneish M-Score
-3.03 (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 -3.03 suggests that the company is not a manipulator.

TOT' s 10-Year Beneish M-Score Range
Min: -3.21   Max: -2.11
Current: -3.03

-3.21
-2.11

During the past 13 years, the highest Beneish M-Score of Total SA was -2.11. The lowest was -3.21. And the median was -2.72.


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 * 0.8573+0.528 * 1.0293+0.404 * 0.9807+0.892 * 0.9674+0.115 * 1.1768
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0016+4.679 * -0.0904-0.327 * 0.9775
=-3.03

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

This Year (Mar14) TTM:Last Year (Mar13) TTM:
Accounts Receivable was $23,359 Mil.
Revenue was 54855 + 58767 + 56712.591 + 55394.24 = $225,729 Mil.
Gross Profit was 16523 + 16775 + 17083.406 + 15847.778 = $66,229 Mil.
Total Current Assets was $87,118 Mil.
Total Assets was $243,392 Mil.
Property, Plant and Equipment(Net PPE) was $106,377 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,568 Mil.
Selling, General & Admin. Expense(SGA) was $29,169 Mil.
Total Current Liabilities was $60,513 Mil.
Long-Term Debt was $37,506 Mil.
Net Income was 3335 + 2234 + 3725.694 + 3306.399 = $12,601 Mil.
Non Operating Income was 1419 + 707 + 2161.739 + 1174.247 = $5,462 Mil.
Cash Flow from Operations was 5338 + 9578 + 9383.729 + 4829.923 = $29,130 Mil.
Accounts Receivable was $28,164 Mil.
Revenue was 58020 + 60133.044 + 58720.465 + 56455.331 = $233,329 Mil.
Gross Profit was 17701 + 18005.925 + 19199.484 + 15555.105 = $70,462 Mil.
Total Current Assets was $87,820 Mil.
Total Assets was $225,455 Mil.
Property, Plant and Equipment(Net PPE) was $90,505 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,898 Mil.
Selling, General & Admin. Expense(SGA) was $30,103 Mil.
Total Current Liabilities was $63,590 Mil.
Long-Term Debt was $29,294 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)
=(23359 / 225728.831) / (28164 / 233328.84)
=0.10348257 / 0.12070518
=0.8573

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)
=(16775 / 233328.84) / (16523 / 225728.831)
=0.30198373 / 0.29340153
=1.0293

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 - (87118 + 106377) / 243392) / (1 - (87820 + 90505) / 225455)
=0.20500674 / 0.20904393
=0.9807

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
=225728.831 / 233328.84
=0.9674

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))
=(13897.752 / (13897.752 + 90505)) / (13568.364 / (13568.364 + 106377))
=0.13311672 / 0.1131212
=1.1768

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)
=(29169.392 / 225728.831) / (30103.251 / 233328.84)
=0.12922316 / 0.12901642
=1.0016

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)
=((37506 + 60513) / 243392) / ((29294 + 63590) / 225455)
=0.40272071 / 0.41198465
=0.9775

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
=(12601.093 - 5461.986 - 29129.652) / 243392
=-0.0904

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 -3.03 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

Dec04Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13
DSRI 1.22780.89151.19330.77911.37090.62981.38940.861.0053
GMI 1.03071.0781.02491.16490.83931.08811.06511.03851.034
AQI 1.00131.01050.9891.0070.9751.09740.98180.92361.0446
SGI 1.07291.26411.13911.11880.71991.16271.15541.11690.9832
DEPI 1.31391.01550.97041.06060.97670.8421.20510.8991.1204
SGAI 0.83321.00440.86440.93611.39140.82170.87241.05171.0109
LVGI 1.04551.01890.9820.95930.98711.00760.99620.98420.9671
TATA -0.0327-0.0624-0.0553-0.0828-0.0435-0.0724-0.0649-0.086-0.089
M-score -2.29-2.60-2.40-2.84-2.75-2.92-2.21-2.93-2.85

Total SA Quarterly Data

Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14
DSRI 1.30990.94470.88810.99340.6110.89380.9790.9280.95770.8573
GMI 1.06461.09291.0751.03461.03781.02110.99351.03781.03451.0293
AQI 0.98181.01331.05220.99980.92360.98030.98891.03051.0440.9807
SGI 1.22561.15511.0661.03561.07221.03521.04031.02060.96280.9674
DEPI 1.13511.11621.0881.00260.92840.88320.91391.04051.13751.1768
SGAI 0.87150.91790.97381.00021.05141.09841.06491.0671.01451.0016
LVGI 0.99620.96350.92820.96980.98420.980.95680.95490.96620.9775
TATA -0.0668-0.0626-0.0731-0.0626-0.0832-0.0784-0.0636-0.0779-0.0856-0.0904
M-score -2.24-2.59-2.77-2.72-3.19-2.93-2.78-2.85-2.89-3.03
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