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Total SA (NYSE:TOT)
Beneish M-Score
-2.45 (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 -2.43 suggests that the company is not a manipulator.

TOT' s 10-Year Beneish M-Score Range
Min: -3.2   Max: -2.18
Current: -2.45

-3.2
-2.18

During the past 13 years, the highest Beneish M-Score of Total SA was -2.18. The lowest was -3.20. And the median was -2.77.


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 * 1.4634+0.528 * 1.0354+0.404 * 1.0446+0.892 * 0.9717+0.115 * 1.1126
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0114+4.679 * -0.0881-0.327 * 0.9671
=-2.43

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

This Year (Dec13) TTM:Last Year (Dec12) TTM:
Accounts Receivable was $36,317 Mil.
Revenue was 58840.599455 + 57336.9713506 + 55633.5078534 + 57280.3129074 = $229,091 Mil.
Gross Profit was 16782.0163488 + 17271.4870396 + 15916.2303665 + 17475.8800522 = $67,446 Mil.
Total Current Assets was $83,579 Mil.
Total Assets was $236,364 Mil.
Property, Plant and Equipment(Net PPE) was $103,214 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,461 Mil.
Selling, General & Admin. Expense(SGA) was $28,941 Mil.
Total Current Liabilities was $61,031 Mil.
Long-Term Debt was $34,154 Mil.
Net Income was 2186.64850136 + 3766.71214188 + 3320.68062827 + 2003.91134289 = $11,278 Mil.
Non Operating Income was 937.329700272 + 2185.53888131 + 1179.31937173 + -1053.45501956 = $3,249 Mil.
Cash Flow from Operations was 9666.21253406 + 9487.03956344 + 4850.78534031 + 4847.45762712 = $28,851 Mil.
Accounts Receivable was $25,540 Mil.
Revenue was 60464.0957447 + 58987.0298314 + 54761.6707617 + 61546.0526316 = $235,759 Mil.
Gross Profit was 18105.0531915 + 19286.6407263 + 15088.4520885 + 19386.8421053 = $71,867 Mil.
Total Current Assets was $89,783 Mil.
Total Assets was $227,691 Mil.
Property, Plant and Equipment(Net PPE) was $92,197 Mil.
Depreciation, Depletion and Amortization(DDA) was $13,577 Mil.
Selling, General & Admin. Expense(SGA) was $29,446 Mil.
Total Current Liabilities was $65,191 Mil.
Long-Term Debt was $29,620 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)
=(36317.4386921 / 229091.391566) / (25539.893617 / 235758.848969)
=0.15852817 / 0.10833058
=1.4634

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)
=(17271.4870396 / 235758.848969) / (16782.0163488 / 229091.391566)
=0.30483262 / 0.29440484
=1.0354

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 - (83579.0190736 + 103213.896458) / 236363.760218) / (1 - (89783.2446809 + 92196.8085106) / 227691.489362)
=0.20972269 / 0.20076041
=1.0446

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
=229091.391566 / 235758.848969
=0.9717

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))
=(13577.0345115 / (13577.0345115 + 92196.8085106)) / (13460.6236154 / (13460.6236154 + 103213.896458))
=0.12835909 / 0.11536901
=1.1126

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)
=(28940.5702561 / 229091.391566) / (29446.2045124 / 235758.848969)
=0.12632762 / 0.12489968
=1.0114

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)
=((34153.9509537 + 61031.3351499) / 236363.760218) / ((29619.6808511 + 65191.4893617) / 227691.489362)
=0.40270677 / 0.41640191
=0.9671

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
=(11277.9526144 - 3248.73293375 - 28851.4950649) / 236363.760218
=-0.0881

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 -2.43 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 1.22780.89151.19330.77911.37090.62981.38940.861.0053
GMI 1.03071.0781.02491.16490.83931.08811.06511.03851.034
AQI 1.00131.01050.9891.0070.9751.09740.98180.92361.0446
SGI 1.13561.2141.16941.05380.75341.17381.14431.1280.9647
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 -2.24-2.64-2.38-2.90-2.72-2.91-2.22-2.92-2.86

Total SA Quarterly Data

Sep11Dec11Mar12Jun12Sep12Dec12Mar13Jun13Sep13Dec13
DSRI 0.88211.29620.92250.87350.98670.64660.95681.03810.95331.4634
GMI 1.0521.0641.09221.07431.03461.03771.02110.99531.03931.0354
AQI 0.96420.98181.01331.05220.99980.92360.98010.98891.03051.0446
SGI 1.20641.22661.13951.06541.03571.02330.99861.015710.9717
DEPI 0.94411.14311.11051.07591.00180.96970.93320.9581.0591.1126
SGAI 0.86190.87120.91710.97090.99711.05211.09331.0621.06381.0114
LVGI 0.96260.99620.96350.92820.96980.98420.97950.95680.95490.9671
TATA -0.0751-0.0703-0.066-0.0774-0.064-0.0819-0.0759-0.0631-0.0771-0.0881
M-score -2.71-2.27-2.64-2.80-2.73-3.19-2.89-2.73-2.84-2.43
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