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Total SA (NYSE:TOT)
Beneish M-Score
-3.14 (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 -3.40 suggests that the company is not a manipulator.

TOT' s 10-Year Beneish M-Score Range
Min: -3.44   Max: -2.29
Current: -3.14

-3.44
-2.29

During the past 13 years, the highest Beneish M-Score of Total SA was -2.29. The lowest was -3.44. 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 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 * 0.7663+0.528 * 1.0209+0.404 * 0.9827+0.892 * 0.8635+0.115 * 0.651
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0572+4.679 * -0.1127-0.327 * 1.0318
=-3.40

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

This Year (Mar15) TTM:Last Year (Mar14) TTM:
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.
Net Income was 2663 + -5658 + 3463 + 3104 = $3,572 Mil.
Non Operating Income was 1745 + 768 + 1211 + 889 = $4,613 Mil.
Cash Flow from Operations was 4387 + 7354 + 7639 + 5277 = $24,657 Mil.
Accounts Receivable was $23,359 Mil.
Revenue was 54855 + 58767 + 55676 + 55506 = $224,804 Mil.
Gross Profit was 16523 + 16775 + 16769 + 15875 = $65,942 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 $13,486 Mil.
Selling, General & Admin. Expense(SGA) was $22,272 Mil.
Total Current Liabilities was $60,513 Mil.
Long-Term Debt was $37,506 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)
=(15458 / 194126) / (23359 / 224804)
=0.07962869 / 0.10390829
=0.7663

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)
=(11090 / 224804) / (13257 / 194126)
=0.29333108 / 0.2873237
=1.0209

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 - (76199 + 105806) / 227921) / (1 - (87118 + 106377) / 243392)
=0.20145577 / 0.20500674
=0.9827

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
=194126 / 224804
=0.8635

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))
=(13486 / (13486 + 106377)) / (22109 / (22109 + 105806))
=0.11251178 / 0.17284134
=0.651

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)
=(20332 / 194126) / (22272 / 224804)
=0.1047361 / 0.09907297
=1.0572

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)
=((41827 + 52884) / 227921) / ((37506 + 60513) / 243392)
=0.4155431 / 0.40272071
=1.0318

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
=(3572 - 4613 - 24657) / 227921
=-0.1127

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 -3.40 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

Dec05Dec06Dec07Dec08Dec09Dec10Dec11Dec12Dec13Dec14
DSRI 1.13880.78241.31360.77861.38760.69490.95370.87760.94970.7209
GMI 1.03071.0781.02491.16490.83931.08811.06511.03851.03411.0573
AQI 1.00131.01050.9891.0070.9751.09740.98180.92321.04450.9332
SGI 1.07291.26411.13911.11880.71991.16271.15541.0850.97330.93
DEPI 1.31391.01550.97041.06060.97670.8421.20510.921.1320.6942
SGAI 0.83321.00440.86440.93611.39140.82170.87241.05171.00951.0597
LVGI 1.04551.01890.9820.95930.98711.00760.99620.98360.96681.0725
TATA -0.0327-0.0624-0.0553-0.0828-0.0435-0.0724-0.0649-0.0823-0.0844-0.1122
M-score -2.37-2.70-2.29-2.84-2.74-2.86-2.61-2.93-2.88-3.39

Total SA Quarterly Data

Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15
DSRI 0.89380.9820.93250.96160.86080.87390.84370.72090.7663
GMI 1.02110.99361.03791.03471.02951.04231.03161.05731.0209
AQI 0.98030.98871.031.0440.98070.96580.9560.93320.9827
SGI 1.03521.04081.01650.95890.96350.97040.9770.930.8635
DEPI 0.88320.91651.04671.14371.18311.1481.17120.69420.651
SGAI 4.28972.011.04790.77630.76790.76590.9981.04231.0572
LVGI 0.980.95670.95430.96620.97751.0411.04721.07251.0318
TATA -0.0784-0.0631-0.0757-0.0835-0.0884-0.0882-0.0808-0.1116-0.1127
M-score -3.48-2.93-2.84-2.84-2.98-2.98-3.02-3.38-3.40
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