Switch to:
Total SA (NYSE:TOT)
Beneish M-Score
-2.89 (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: -3.24   Max: -2.27
Current: -2.89

-3.24
-2.27

During the past 13 years, the highest Beneish M-Score of Total SA was -2.27. The lowest was -3.24. And the median was -2.70.


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 * 0.8437+0.528 * 1.0316+0.404 * 0.956+0.892 * 0.977+0.115 * 1.1712
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.7675+4.679 * -0.0808-0.327 * 1.0472
=-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 $24,883 Mil.
Revenue was 55676 + 55506 + 58020 + 60133.044 = $229,335 Mil.
Gross Profit was 16769 + 15875 + 17701 + 18005.925 = $68,351 Mil.
Total Current Assets was $85,217 Mil.
Total Assets was $230,346 Mil.
Property, Plant and Equipment(Net PPE) was $97,134 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,699 Mil.
Selling, General & Admin. Expense(SGA) was $29,625 Mil.
Total Current Liabilities was $59,116 Mil.
Long-Term Debt was $33,937 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) / (24883 / 229335.044)
=0.09154612 / 0.10850064
=0.8437

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 / 229335.044) / (15594 / 224051)
=0.2980396 / 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 - (85217 + 97134) / 230346)
=0.19920025 / 0.20836047
=0.956

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 / 229335.044
=0.977

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))
=(13699.34 / (13699.34 + 97134)) / (12912 / (12912 + 109437))
=0.12360306 / 0.10553417
=1.1712

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) / (29624.832 / 229335.044)
=0.09914261 / 0.12917708
=0.7675

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) / ((33937 + 59116) / 230346)
=0.42305415 / 0.40397055
=1.0472

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 1.13880.78241.31360.77861.38760.69490.95370.87560.9457
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 -2.37-2.70-2.29-2.84-2.74-2.86-2.61-2.92-2.90

Total SA Quarterly Data

Jun12Sep12Dec12Mar13Jun13Sep13Dec13Mar14Jun14Sep14
DSRI 0.88810.99340.89020.89380.9820.93250.96160.86080.87390.8437
GMI 1.0751.03461.03781.02110.99361.03791.03471.02951.04231.0316
AQI 1.05220.99980.92360.98030.98871.031.0440.98070.96580.956
SGI 1.0661.03561.07221.03521.04081.01650.95890.96350.97040.977
DEPI 1.0881.00260.92840.88320.91651.04671.14371.18311.1481.1712
SGAI 0.97381.00021.05141.09841.06241.06931.01661.00381.00190.7675
LVGI 0.92820.96980.98420.980.95670.95430.96620.97751.0411.0472
TATA -0.0731-0.0626-0.0832-0.0784-0.0631-0.0757-0.0835-0.0884-0.0882-0.0808
M-score -2.77-2.72-2.93-2.93-2.77-2.84-2.88-3.02-3.02-2.98
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)
Free 7-day Trial
FEEDBACK