Switch to:
Total SA (NYSE:TOT)
Beneish M-Score
-3.23 (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 -3.34 suggests that the company is not a manipulator.

TOT' s 10-Year Beneish M-Score Range
Min: -3.44   Max: -2.31
Current: -3.23

-3.44
-2.31

During the past 13 years, the highest Beneish M-Score of Total SA was -2.31. The lowest was -3.44. And the median was -2.78.


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 * 0.7209+0.528 * 1.0573+0.404 * 0.9332+0.892 * 0.93+0.115 * 0.6942
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7099+4.679 * -0.1141-0.327 * 1.0725
=-3.34

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

This Year (Dec14) TTM:Last Year (Dec13) TTM:
Accounts Receivable was $15,704 Mil.
Revenue was 46734 + 54222 + 56207 + 54855 = $212,018 Mil.
Gross Profit was 11090 + 15594 + 15836 + 16523 = $59,043 Mil.
Total Current Assets was $77,977 Mil.
Total Assets was $229,798 Mil.
Property, Plant and Equipment(Net PPE) was $106,876 Mil.
Depreciation, Depletion and Amortization(DDA) was $20,859 Mil.
Selling, General & Admin. Expense(SGA) was $14,593 Mil.
Total Current Liabilities was $53,673 Mil.
Long-Term Debt was $45,481 Mil.
Net Income was -5658 + 3463 + 3104 + 3335 = $4,244 Mil.
Non Operating Income was 1328 + 1211 + 889 + 1419 = $4,847 Mil.
Cash Flow from Operations was 7354 + 7639 + 5277 + 5338 = $25,608 Mil.
Accounts Receivable was $23,422 Mil.
Revenue was 58767 + 55676 + 55506 + 58020 = $227,969 Mil.
Gross Profit was 16775 + 16769 + 15875 + 17701 = $67,120 Mil.
Total Current Assets was $84,603 Mil.
Total Assets was $239,223 Mil.
Property, Plant and Equipment(Net PPE) was $104,480 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,358 Mil.
Selling, General & Admin. Expense(SGA) was $22,102 Mil.
Total Current Liabilities was $61,668 Mil.
Long-Term Debt was $34,574 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)
=(15704 / 212018) / (23422 / 227969)
=0.07406918 / 0.10274204
=0.7209

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)
=(15594 / 227969) / (11090 / 212018)
=0.294426 / 0.27848107
=1.0573

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 - (77977 + 106876) / 229798) / (1 - (84603 + 104480) / 239223)
=0.19558482 / 0.20959523
=0.9332

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
=212018 / 227969
=0.93

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))
=(13358 / (13358 + 104480)) / (20859 / (20859 + 106876))
=0.11335902 / 0.16329902
=0.6942

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)
=(14593 / 212018) / (22102 / 227969)
=0.06882906 / 0.09695178
=0.7099

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)
=((45481 + 53673) / 229798) / ((34574 + 61668) / 239223)
=0.4314833 / 0.40231081
=1.0725

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
=(4244 - 4847 - 25608) / 229798
=-0.1141

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 -3.34 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

Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14Dec14
DSRI 0.89380.9820.93250.96160.86080.87390.84370.7209
GMI 1.02110.99361.03791.03471.02951.04231.03161.0573
AQI 0.98030.98871.031.0440.98070.96580.9560.9332
SGI 1.03521.04081.01650.95890.96350.97040.9770.93
DEPI 0.88320.91651.04671.14371.18311.1481.17120.6942
SGAI 4.28972.011.04790.77630.76790.76590.9980.7099
LVGI 0.980.95670.95430.96620.97751.0411.04721.0725
TATA -0.0784-0.0631-0.0757-0.0835-0.0884-0.0882-0.0808-0.1141
M-score -3.48-2.93-2.84-2.84-2.98-2.98-3.02-3.34
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