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Total SA (NYSE:TOT)
Beneish M-Score
-2.93 (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 -2.98 suggests that the company is not a manipulator.

TOT' s 10-Year Beneish M-Score Range
Min: -3.15   Max: -2.29
Current: -2.93

-3.15
-2.29

During the past 13 years, the highest Beneish M-Score of Total SA was -2.29. The lowest was -3.15. And the median was -2.71.


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 * 0.8415+0.528 * 1.0316+0.404 * 0.9555+0.892 * 0.9804+0.115 * 1.1714
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7721+4.679 * -0.0808-0.327 * 1.0465
=-2.98

* 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 $20,511 Mil.
Revenue was 54222 + 56207 + 54855 + 58767 = $224,051 Mil.
Gross Profit was 15594 + 15836 + 16523 + 16775 = $64,728 Mil.
Total Current Assets was $88,021 Mil.
Total Assets was $246,576 Mil.
Property, Plant and Equipment(Net PPE) was $109,437 Mil.
Depreciation, Depletion and Amortization(DDA) was $12,912 Mil.
Selling, General & Admin. Expense(SGA) was $22,213 Mil.
Total Current Liabilities was $61,073 Mil.
Long-Term Debt was $43,242 Mil.
Net Income was 3463 + 3104 + 3335 + 2234 = $12,136 Mil.
Non Operating Income was 1211 + 889 + 1419 + 707 = $4,226 Mil.
Cash Flow from Operations was 7639 + 5277 + 5338 + 9578 = $27,832 Mil.
Accounts Receivable was $24,864 Mil.
Revenue was 56712.591 + 55394.24 + 56300.378 + 60133.044 = $228,540 Mil.
Gross Profit was 17083.406 + 15847.778 + 17176.908 + 18005.925 = $68,114 Mil.
Total Current Assets was $85,149 Mil.
Total Assets was $230,190 Mil.
Property, Plant and Equipment(Net PPE) was $97,054 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,691 Mil.
Selling, General & Admin. Expense(SGA) was $29,345 Mil.
Total Current Liabilities was $59,146 Mil.
Long-Term Debt was $33,908 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)
=(20511 / 224051) / (24864.048 / 228540.253)
=0.09154612 / 0.10879505
=0.8415

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)
=(15836 / 228540.253) / (15594 / 224051)
=0.29803947 / 0.28889851
=1.0316

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 - (88021 + 109437) / 246576) / (1 - (85148.501 + 97054.259) / 230190.13)
=0.19920025 / 0.20846841
=0.9555

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
=224051 / 228540.253
=0.9804

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))
=(13690.788 / (13690.788 + 97054.259)) / (12912 / (12912 + 109437))
=0.12362438 / 0.10553417
=1.1714

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)
=(22213 / 224051) / (29345.226 / 228540.253)
=0.09914261 / 0.12840288
=0.7721

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)
=((43242 + 61073) / 246576) / ((33907.728 + 59145.56) / 230190.13)
=0.42305415 / 0.40424534
=1.0465

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
=(12136 - 4226 - 27832) / 246576
=-0.0808

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 -2.98 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 1.13880.78241.31360.77861.38760.86350.74940.87520.9689
GMI 1.03071.0781.02491.16490.83931.08811.06511.06631.0071
AQI 1.00131.01050.9891.0070.9751.07391.01090.92951.0302
SGI 1.07291.26411.13911.11880.71991.16271.15541.11690.9832
DEPI 1.31391.01550.97041.06060.97670.85091.19250.8991.1204
SGAI 0.83321.00440.86440.93611.39140.82170.87471.04371.016
LVGI 1.04551.01890.9820.95930.98711.00760.99410.98280.9706
TATA -0.0327-0.0624-0.0553-0.0828-0.0435-0.0687-0.0571-0.0837-0.089
M-score -2.37-2.70-2.29-2.84-2.74-2.69-2.75-2.89-2.90

Total SA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.88810.99340.91170.90110.98630.9350.9650.85030.86610.8415
GMI 1.0751.03461.03781.02120.99351.03791.03471.02921.04221.0316
AQI 0.89981.01220.91670.98010.98891.0181.0440.98080.96560.9555
SGI 1.0661.03561.07221.02751.03261.0130.95560.97460.98260.9804
DEPI 1.14971.01690.94180.90150.90941.03691.13391.15881.13851.1714
SGAI 0.51021.05622.02832.10042.0251.36251.01471.00970.99880.7721
LVGI 0.93360.96680.98630.97950.95680.95790.96620.9781.04091.0465
TATA -0.0625-0.0522-0.0803-0.0749-0.063-0.0773-0.085-0.0904-0.0899-0.0808
M-score -2.69-2.67-3.07-3.09-2.94-2.91-2.89-3.03-3.03-2.98
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