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Total SA (NYSE:TOT)
Beneish M-Score
-3.20 (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 -3.37 suggests that the company is not a manipulator.

TOT' s 10-Year Beneish M-Score Range
Min: -3.42   Max: -2.29
Current: -3.2

-3.42
-2.29

During the past 13 years, the highest Beneish M-Score of Total SA was -2.29. The lowest was -3.42. 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 * 0.8494+0.528 * 0.9798+0.404 * 0.9357+0.892 * 0.7821+0.115 * 0.6782
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.842+4.679 * -0.1089-0.327 * 1.009
=-3.37

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

This Year (Jun15) TTM:Last Year (Jun14) TTM:
Accounts Receivable was $14,415 Mil.
Revenue was 39269 + 36963 + 46734 + 54222 = $177,188 Mil.
Gross Profit was 12916 + 13257 + 11090 + 15594 = $52,857 Mil.
Total Current Assets was $79,375 Mil.
Total Assets was $234,476 Mil.
Property, Plant and Equipment(Net PPE) was $110,023 Mil.
Depreciation, Depletion and Amortization(DDA) was $22,135 Mil.
Selling, General & Admin. Expense(SGA) was $19,134 Mil.
Total Current Liabilities was $55,528 Mil.
Long-Term Debt was $43,363 Mil.
Net Income was 2971 + 2663 + -5658 + 3463 = $3,439 Mil.
Non Operating Income was 1131 + 1745 + 768 + 1211 = $4,855 Mil.
Cash Flow from Operations was 4732 + 4387 + 7354 + 7639 = $24,112 Mil.
Accounts Receivable was $21,698 Mil.
Revenue was 56207 + 54855 + 58767 + 56712.591 = $226,542 Mil.
Gross Profit was 15836 + 16523 + 16775 + 17083.406 = $66,217 Mil.
Total Current Assets was $89,187 Mil.
Total Assets was $248,770 Mil.
Property, Plant and Equipment(Net PPE) was $108,468 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,900 Mil.
Selling, General & Admin. Expense(SGA) was $29,054 Mil.
Total Current Liabilities was $64,554 Mil.
Long-Term Debt was $39,433 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)
=(14415 / 177188) / (21698 / 226541.591)
=0.08135427 / 0.09577932
=0.8494

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)
=(13257 / 226541.591) / (12916 / 177188)
=0.29229691 / 0.29831027
=0.9798

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 - (79375 + 110023) / 234476) / (1 - (89187 + 108468) / 248770)
=0.19224995 / 0.20547092
=0.9357

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
=177188 / 226541.591
=0.7821

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))
=(13900.249 / (13900.249 + 108468)) / (22135 / (22135 + 110023))
=0.11359359 / 0.16748891
=0.6782

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)
=(19134 / 177188) / (29054.459 / 226541.591)
=0.107987 / 0.12825221
=0.842

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)
=((43363 + 55528) / 234476) / ((39433 + 64554) / 248770)
=0.42175319 / 0.41800458
=1.009

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
=(3439 - 4855 - 24112) / 234476
=-0.1089

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 -3.37 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 1.13880.78241.31360.77861.38760.86350.74940.87520.96890.7256
GMI 1.03071.0781.02491.16490.83931.08811.06511.06631.00711.0573
AQI 1.00131.01050.9891.0070.9751.07391.01090.92951.03020.9326
SGI 1.07291.26411.13911.11880.71991.16271.15541.11690.98320.8945
DEPI 1.31391.01550.97041.06060.97670.85091.19250.8991.12040.7177
SGAI 0.83321.00440.86440.93611.39140.82170.87471.04371.0161.0583
LVGI 1.04551.01890.9820.95930.98711.00760.99410.98280.97061.0715
TATA -0.0327-0.0624-0.0553-0.0828-0.0435-0.0687-0.0571-0.0837-0.089-0.1118
M-score -2.37-2.70-2.29-2.84-2.74-2.69-2.75-2.89-2.90-3.41

Total SA Quarterly Data

Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15
DSRI 0.90110.98630.9350.9650.85030.86610.84150.71840.76950.8494
GMI 1.02120.99351.03791.03471.02921.04221.03161.05721.02120.9798
AQI 0.98010.98891.0181.0440.98080.96560.95550.93320.98270.9357
SGI 1.02751.03261.0130.95560.97460.98260.98040.93330.860.7821
DEPI 0.90150.90941.03691.13391.15881.13851.17140.69380.65450.6782
SGAI 2.10042.0251.36251.01471.00970.99880.77210.80090.81050.842
LVGI 0.97950.95680.95790.96620.9781.04091.04651.07251.03181.009
TATA -0.0749-0.063-0.0773-0.085-0.0904-0.0899-0.0808-0.1116-0.1127-0.1089
M-score -3.09-2.94-2.91-2.89-3.03-3.03-2.98-3.34-3.36-3.37
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