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Total SA (NYSE:TOT)
Beneish M-Score
-3.40 (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 -3.51 suggests that the company is not a manipulator.

TOT' s Beneish M-Score Range Over the Past 10 Years
Min: -3.42   Max: -2.27
Current: -3.4

-3.42
-2.27

During the past 13 years, the highest Beneish M-Score of Total SA was -2.27. The lowest was -3.42. And the median was -2.86.


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 * 0.8515+0.528 * 0.9517+0.404 * 0.9863+0.892 * 0.7046+0.115 * 0.6193
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.2225+4.679 * -0.1115-0.327 * 0.9879
=-3.51

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

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Accounts Receivable was $12,306 Mil.
Revenue was 34897 + 39269 + 36963 + 46734 = $157,863 Mil.
Gross Profit was 10657 + 12916 + 13257 + 11090 = $47,920 Mil.
Total Current Assets was $75,221 Mil.
Total Assets was $229,125 Mil.
Property, Plant and Equipment(Net PPE) was $108,886 Mil.
Depreciation, Depletion and Amortization(DDA) was $22,366 Mil.
Selling, General & Admin. Expense(SGA) was $19,134 Mil.
Total Current Liabilities was $52,890 Mil.
Long-Term Debt was $42,873 Mil.
Net Income was 1079 + 2971 + 2663 + -5658 = $1,055 Mil.
Non Operating Income was 506 + 1131 + 1745 + 768 = $4,150 Mil.
Cash Flow from Operations was 5989 + 4732 + 4387 + 7354 = $22,462 Mil.
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.



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)
=(12306 / 157863) / (20511 / 224051)
=0.07795367 / 0.09154612
=0.8515

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)
=(12916 / 224051) / (10657 / 157863)
=0.28889851 / 0.30355435
=0.9517

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 - (75221 + 108886) / 229125) / (1 - (88021 + 109437) / 246576)
=0.19647791 / 0.19920025
=0.9863

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
=157863 / 224051
=0.7046

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))
=(12912 / (12912 + 109437)) / (22366 / (22366 + 108886))
=0.10553417 / 0.17040502
=0.6193

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 / 157863) / (22213 / 224051)
=0.12120636 / 0.09914261
=1.2225

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)
=((42873 + 52890) / 229125) / ((43242 + 61073) / 246576)
=0.4179509 / 0.42305415
=0.9879

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
=(1055 - 4150 - 22462) / 229125
=-0.1115

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 -3.51 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 1.13880.78241.13210.80481.33020.71771.08120.87760.94970.7209
GMI 1.03071.0780.82161.16650.83481.10581.31261.03851.03411.0573
AQI 1.00131.01050.9891.0070.9751.09740.98180.92321.04450.9332
SGI 1.07291.26411.32171.08240.7511.12581.01911.0850.97330.93
DEPI 1.31391.01550.97041.06060.97670.8421.20510.921.1320.6942
SGAI 0.83321.00440.7450.96751.33390.84870.98911.05171.00951.0597
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 -2.37-2.70-2.38-2.86-2.76-2.87-2.51-2.93-2.88-3.39

Total SA Quarterly Data

Jun13Sep13Dec13Mar14Jun14Sep14Dec14Mar15Jun15Sep15
DSRI 0.9820.93250.96160.86080.87390.84370.72090.76630.84550.8515
GMI 0.99361.03791.03471.02951.04231.03161.05731.02090.97970.9517
AQI 0.98871.031.0440.98070.96580.9560.93320.98270.93570.9863
SGI 1.04081.01650.95890.96350.97040.9770.930.86350.78570.7046
DEPI 0.91651.04671.14371.18311.1481.17120.69420.6510.67450.6193
SGAI 0.7190.47650.77630.76790.76590.9981.04231.05721.09631.2225
LVGI 0.95670.95430.96620.97751.0411.04721.07251.03181.0090.9879
TATA -0.0631-0.0757-0.0835-0.0884-0.0883-0.0815-0.1124-0.1135-0.1095-0.1115
M-score -2.71-2.74-2.84-2.98-2.98-3.02-3.39-3.40-3.42-3.51
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